MARKET MOVEMENTS:

--Brent crude oil is up 3% at $65.86 a barrel

--European benchmark gas is up 3.7% at 35.90 euros a megawatt-hour

--Gold futures are down 2.9% at $3,246.10 a troy ounce

--LME three-month copper futures are up 0.7% at $9,503 a metric ton

TOP STORY:

Gold Futures Slump as U.S., China Agree to Substantial Tariff Cuts

Gold futures slid as the U.S. and China agreed to substantially lower tariffs, increasing risk-on sentiment in markets.

Continuous gold futures on the New York Mercantile Exchange fell 3.75% to $3,218.70 a troy ounce in European morning trading. They had dipped as low as $3,216.00 a troy ounce earlier in the session--the lowest level since May 1. The precious metal remains up nearly 20% in the year to date on safe-haven demand, reflecting U.S. tariff-driven market volatility and geopolitical conflicts.

OTHER STORIES:

NRG Energy to Acquire LS Power Portfolio in $12 Billion Deal

NRG Energy has agreed to acquire LS Power's portfolio of natural gas generation facilities and power plant platform in a cash-and-stock deal with an enterprise value of about $12 billion.

The power company said Monday that the acquisition gives it 18 more natural gas-fired facilities located across nine states, doubling its generation capacity and expanding its footprint.

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Aramco's Earnings Narrowly Beat Expectations

Saudi Arabia's national oil company reported a marginal profit beat for the first quarter as weaker oil prices caused by global economic uncertainty dragged on earnings.

Saudi Arabian Oil Co., known as Aramco, said Sunday that net profit fell to $26.01 billion from $27.27 billion a year prior. That beat the $25.745 billion expected by analysts in a Visible Alpha poll.

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Geodrill 1Q Earnings Jump, Strong Demand Seen Despite Tariff Uncertainty

Geodrill posted record revenue in the latest quarter and said it continues to see strong demand for its mining services despite concerns over the use of import tariffs.

The West Africa-focused drill-rig operator said on Monday that strong gold and copper prices continue to fuel demand, and that its pipeline of bidding remains very active.

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Dole 1Q Profit, Revenue Decline

Dole posted a smaller profit as revenue ticked down slightly in its latest quarter.

The Dublin-based agricultural company logged net income of $38.9 million, or 41 cents a share, compared with $70.1 million, or 74 cents a share, in the prior-year period.

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Hudbay Minerals 1Q Profit, Revenue Rise on Lower Costs

Hudbay Minerals profit and revenue rose in the first quarter on the back of lower costs, while production fell.

The Canadian mining company, primarily focused on copper concentrate and zinc, posted on Monday a net income of $100.4 million, or 25 cents a share, up from $22.3 million, or 6 cents a share, in the comparable quarter a year ago.

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Glencore-Backed Cobalt Holdings Aims for $230 Million London Listing in June

Glencore-backed Cobalt Holdings said it intends to list on the London Stock Exchange and raise $230 million as part of an initial public offering.

The company said Monday that it expects to list 90,000,000 shares on the London market in June 2025 but didn't disclose a target price.

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South32 Taps Anglo American Executive to Become CEO in 2026

SYDNEY--South32 said Graham Kerr would step down as chief executive next year and be replaced by Matthew Daley, who is part of Anglo American's executive leadership team.

South32 said Daley would initially join the company as deputy CEO on Feb. 2 and then move into the top job at an unspecified date in 2026. Daley, currently Anglo American's technical and operations director, plans to move to Australia from the U.K. for the role with South32.

MARKET TALKS:

Ag Futures Mostly Higher After U.S.-China Agreement -- Market Talk

0904 ET - The U.S.-China trade deal is giving commodities a lift across the board, including most agricultural commodities. "President Donald Trump described the outcome as a 'total reset' of U.S.-China trade relations, emphasizing the importance of opening Chinese markets to American businesses," says John Stewart & Associates in a note. Soybeans are leading row crops on the CBOT higher, up 1.7%. Soybeans are the crop in Chicago most tied to developments in U.S.-China trade. Corn rises 1.1% and wheat is down 0.2%. (kirk.maltais@wsj.com)

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U.S.-China Trade Truce Mixed for Natural Gas -- Market Talk

0855 ET - U.S. natural gas futures are lower after rising the previous two weeks, with less immediate impact seen from the 90-day tariff agreement reached between the U.S. and China that's lifting oil. The truce creates mixed conditions for natural gas, Eli Rubin of EBW Analytics says in a note. "Higher demand for China, a strengthened economic outlook, and reduced risks of a recession in the U.S. are supportive near-term," he says. But higher oil prices may strengthen the outlook for associated gas supply as it takes economic pressure of oil producers. Still, "the uncertainty of the past 45 days suggests that unease in the long-term outlook will linger," he adds. Nymex natural gas is down 1.3% at $3.744/mmBtu. (anthony.harrup@wsj.com)

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OPEC+ Expected to Halt Output Hikes in August, Goldman Says -- Market Talk

1219 GMT - OPEC+ is expected to halt further increases in oil supply from August as a slowdown in economic activity and weakening oil demand become more evident, according to Goldman Sachs. Analysts at the U.S. bank assume the group will decide to raise production "one final time" by 411,000 barrels a day for July. However, "our economists expect the hard data will start to weaken around mid-to-late summer, and we expect year-over-year global oil demand growth to slow from 600,000 barrels a day in 1Q to flat in 2Q," the analysts say. Still, Goldman warns risks to the output outlook remain skewed to the upside, especially if compliance with production targets doesn't improve. (giulia.petroni@wsj.com)

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Oil Rallies on U.S.-China Truce -- Market Talk

1151 GMT - Crude futures extend gains in afternoon trade after a U.S.-China deal eased concerns over a deepening trade war that has threatened global economic growth and oil demand. Brent climbs 3.8% to $66.35 a barrel, while WTI jumps 4.1% to $63.50 a barrel. After weekend talks in Geneva, the world's top consumers of crude agreed to temporarily slash punishing levies on each other while trade negotiations continue. However, "questions remain for markets as to what the end game will be, as the measure will be operational for 90 days, and what the eventual level of tariffs will be," ING analysts say. "Uncertainty is still high, and volatility is likely to remain elevated across commodities markets." Oil prices are still down more than 11% this year so far amid concerns over OPEC+'s accelerated output hikes and easing geopolitical tensions. (giulia.petroni@wsj.com)

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Oil Prices Rise 3% on U.S.-China Deal But Downside Risks Remain -- Market Talk

1040 GMT - Oil prices rise on the de-escalating trade war between China and the U.S. Brent crude is up 3% at $65.80 a barrel, while WTI gains 3.15% to $62.94 a barrel. While oil prices have partially recovered from recent lows on trade policy optimism, prices are likely to edge down further and average $60 and $56 a barrel for Brent and WTI, respectively, for the rest of 2025, Goldman Sachs analysts say in a note. The U.S. bank's base case assumes OPEC hikes supply one final time in July, global supply growth excluding OPEC, Russia and U.S. shale is strong, and that demand slows but the U.S. avoids a recession. High spare capacity and elevated recession concerns skew the medium-term risks to oil prices to the downside, Goldman says. (joseph.hoppe@wsj.com)

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Base Metal Prices Rise as U.S. and China Lower Tariffs -- Market Talk

1028 GMT - Base metal prices rise, with LME three-month copper up 1.1% at $9,542 a metric ton and LME three-month aluminum up 2.5% at $2,478.50 a ton. Metals rallied as easing U.S.-China trade tensions gave markets a boost, ING analysts say in a note. Both countries said they would temporarily lower tariffs on each other's products, though questions remain for markets as to what the end game will be, ING says. Trading in metals has been volatile since President Donald Trump's inauguration, with much of the uncertainty stemming from comments made by Trump and tariff risks--copper saw its worst performance since mid-2022 in April as signs began to emerge of tariffs hurting economies, ING says. While uncertainty remains high, the U.S.-China agreement has boosted the outlook for metal demand.(joseph.hoppe@wsj.com)

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Cotton Prices Rise as U.S., China Agree Mutual Tariff Reprieves -- Market Talk

0918 GMT - Cotton prices gain as the U.S. and China mutually agree to lower tariffs for a 90-day period, pending further negotiations. Cotton futures rise 3% to $0.69 a pound, and are now broadly flat year to date. Cotton had been one of the commodities most sensitive to the escalation in the U.S.-China trade conflict, BMI analysts write. Cotton prices fell to five-year lows in the aftermath of President Donald Trump's sweeping tariff announcements in early April, though they recovered some ground over the following weeks. The U.S.' role as both a large exporter of cotton and importer of cotton-based products explains the vulnerability of cotton prices to U.S. trade developments, BMI says. Prior to the U.S.-China agreement, the market had priced in effectively no cotton trade between both countries, BMI adds. (joseph.hoppe@wsj.com)

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Agricultural Commodities Mixed; Soybeans Rise on U.S.-China Tariff Cuts -- Market Talk

0853 GMT - Agricultural commodities are mixed, with wheat declining 0.6% to $5.19 a bushel but soybeans rising 1.4% to $10.66 a bushel. The U.S. and China have agreed to suspend most mutual tariffs pending further talks, driving soybeans' gains. China had imported the lowest amount of soybeans in April for ten years, Commerzbank analysts say in a note. According to data from the customs authority, April's soybean imports amounted to just over 6 million metric tons, an on-year decline of 29%. This was likely a result of the U.S.-China trade war, as soybeans from the U.S. became prohibitively expensive due to China's 140% counter-tariffs following U.S. levies, Commerzbank writes. The agreement to lower tariffs on U.S. goods to 10% for 90 days pending further negotiations has since raised hopes of increased soybean demand. (joseph.hoppe@wsj.com)

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Gold Futures Slide on U.S.-China Trade Optimism But Uncertainty Remains -- Market Talk

0852 GMT - Gold futures slide after the U.S. and China said they will temporarily lower tariffs on each other's products. Futures are down 3.2% at $3,236.90 a troy ounce. The precious metal's safe-haven demand has been dented by the easing trade tensions, while a ceasefire between India and Pakistan further buoyed market risk-on sentiment and weighed on gold prices, ING analysts say in a note. That said, questions remain for markets as to what the end game for a U.S.-China trade deal will be, ING says. President Trump's unpredictable trade policy has been a key driver for gold so far in 2025, with the yellow metal up more than 20% year-to-date. Uncertainty is still high and volatility is likely to remain elevated across commodities markets, supporting gold prices, ING adds.(joseph.hoppe@wsj.com)

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European Gas Prices Rise on Russia Sanction Threats, Tariff Cut Optimism -- Market Talk

0830 GMT - European natural-gas prices rise as the European Union threatens new sanctions against Russia. The benchmark Dutch TTF contract rises 3.5% to 35.83 euros a megawatt hour. Ukraine's European allies have threatened fresh sanctions, including a permanent block on the Nord Stream 2 gas pipeline that connects Russia to Germany, if Russia doesn't agree to a 30-day ceasefire proposed by President Trump. The EU has already increased pressure on Russia by detailing plans to cut most energy imports from Russia by the end of 2027. At the same time, gas has also been boosted by a general risk-on market sentiment, as the U.S. and China agreed to substantially cut tariffs pending further talks. (joseph.hoppe@wsj.com)

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Base Metal Prices Rise on U.S.-China Tariff Reduction -- Market Talk

0811 GMT - Base metal prices rise as the U.S. and China agree to substantially cut tariffs pending further talks, with LME three-month copper up 0.8% at $9,515.50 a metric ton and LME three-month aluminum up 2% at $2,465.9 a ton. According to a joint statement, President Trump's "reciprocal" tariffs on China will fall to 10% from 125%, and China will likewise cut tariffs on U.S. goods to 10% from 125% for 90 days. Base metals have ridden the resultant wave of positive market sentiment, as the tariff reductions lift the global economic outlook and raise demand expectations. Previously, forecasters had lowered China's growth outlook, given the effects of punitively high U.S. tariffs on Chinese goods. (joseph.hoppe@wsj.com)

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Aramco's Upstream Division Drives Narrow Beat to Expectations -- Market Talk

0805 GMT - Aramco's first-quarter earnings narrowly beat expectations after a better-than-expected performance in its upstream business, Jefferies analysts Giacomo Romeo and Kai Ye Loh write. Earnings before interest and taxes in the upstream division were 6% above consensus expectations, they say. The focus of the analyst call later on Monday will be Aramco's dividend breakeven point given the current oil price outlook, the analysts write. Aramco's shares trade up 2% at 25.5 Saudi riyals. (adam.whittaker@wsj.com)

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Oil Prices Rise on Cooling U.S.-China Trade Tensions

0757 GMT - Oil prices rise on market optimism as the U.S. and China agree to suspend most mutual tariffs pending further talks. Brent crude is up 2.4% at $65.46 a barrel, while WTI is up 2.6% at $62.62 a barrel. Oil has gained on a general risk-on sentiment in the market, as the lowering of the tariffs improves the outlook for the global economy. That raises the prospect of a limit to weakness in oil demand, ANZ Research analysts say in a note. That said, concerns over higher supply continue to hang over the market. OPEC's move to accelerate planned production hikes signal a significant shift in supply policy, ANZ writes. (joseph.hoppe@wsj.com)

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European Oil Companies Rise on Easing China-U.S. Trade Tensions -- Market Talk

0749 GMT - European integrated oil-and-gas companies trade up on easing U.S.-China trade tensions and an improved outlook for global economic growth. In early morning European trade, Spain's Repsol trades up 3.4% while France's TotalEnergies and Norway's Equinor rise around 3.1%. Britain's BP and Shell rise 2.9% and 2.6% respectively, while Italy's Eni rises 2.4%. Portugal's Galp Energia trades up 2%. The rises come as China and the U.S. have suspended the bulk of their reciprocal and retaliatory tariffs while negotiations continue.(adam.whittaker@wsj.com)

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London-Listed Miners Jump on Easing China-U.S. Trade Tensions -- Market Talk

0727 GMT - Shares in London-listed miners gain on easing U.S.-China trade tensions as the two countries agree to substantially lower tariffs. The U.S. has cut levies on China to 30%, while China has reduced its tariffs on the U.S. to 10%, with more trade negotiations planned. In early morning trade, the miners led gains across the FTSE 100 index with Glencore and copper miner Antofogasta trading up nearly 7%. Anglo American climbs 6.4% and Rio Tinto is 5% higher. (adam.whittaker@wsj.com)

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Iron Ore Prices Rise as Demand Picks Up in China -- Market Talk

0215 GMT - Iron ore prices rise, supported by demand picking up from China. Shipments rebounded to 103 million tonnes, returning to normal levels of average monthly imports in 2024 and the highest volume for 2025, ANZ Research analysts write in a note. Improved supply availability from Australia and a decline in inventories supported imports, they say. Steel exports continued to be well above the monthly average of 9.2 million tonnes, they add. The most-traded iron ore contract on the Dalian Commodity Exchange is up 1.4% at CNY706.00 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

May 12, 2025 09:50 ET (13:50 GMT)

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