OPEC+ to Keep Oil Production Policy Steady After September's Hikes — Market Talk

Palm Oil increased to 4383.00 MYR/T, the highest since April 2025.

Over the past 4 weeks, Palm Oil gained 0.52%, and in the last 12 months, it increased 14.59%.

Oil prices are forecast to fall to a lower level than previously expected due to strong oil production from South America, resilient output from countries sanctioned by the U.S. and expectations of larger inventory builds ahead, according to UBS. Brazil's production reached a fresh record high following a weak 2024. Meanwhile, the U.S. administration granted Chevron a license to resume operations in Venezuela and has held off on extending stricter sanctions on buyers of Russian oil other than India. Iranian production also remains at multiyear highs. UBS now sees Brent crude at $62 a barrel by the end of the year before recovering to $65 a barrel by mid-2026, compared to a previous forecast of $68 a barrel. The international oil benchmarks currently trades at $66 a barrel. (giulia.petroni@wsj.com)

European oil stocks trade down as oil prices fall ahead of talks between President Trump and Russian President Vladimir Putin. The talks could eventually end sanctions on Russian oil, head of investment at Interactive Investor Victoria Scholar writes. In London, Shell falls 0.5% while BP drops 0.45%. France's TotalEnergies trades down 0.4% and Spain's Repsol falls 0.7%. Portugal's Galp Energia trades 0.6% down. (adam.whittaker@wsj.com)

By Jamie Chisholm

Gold bullion can be seen after being removed from casts.

The price of gold fell sharply as investors bet that a tariff on bullion entering the U.S. was less likely, and haven demand for the metal waned on hopes for a Ukraine-Russia ceasefire.

The front-month gold futures contract on the NYMEX exchange fell 2% to $3,418 an ounce in early Monday trading.

Gold futures (GC00) jumped to a record high above $3,500 last week after dealers were blindsided by a report that U.S. Customs and Border Protection said that 1-kilo and 100-ounce gold bars should be classified under a customs code that subjects them to tariffs.

The price of gold had already risen around 30% this year as concerns about U.S. economic policy uncertainty encouraged central banks to buy the precious metal.

However, late on Friday, Bloomberg reported that the Trump administration suggested it would issue a new policy clarifying that imports of gold bars should not face tariffs. Gold futures fell on the news and have continued that decline into Monday's session.

Also possibly weighing on the yellow metal's price, according to analysts, are hopes for a ceasefire in the Ukraine-Russia war ahead of a meeting on Friday in Alaska between U.S. president Donald Trump and and Russia president Vladimir Putin.

-Jamie Chisholm

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Gold futures slump, reversing gains made in the prior session on persistent tariff uncertainty. Futures are down 2.1% at $3,418.30 a troy ounce, having hit an all-time high of $3,534.20 on Friday after confusion over a possible U.S. tariff on the precious metal. U.S. customs authorities had supposedly classified kilogram and 100 ounce bars as subject to import tariffs, though the White House said it would issue a clarification on the matter. The ruling, which contradicts an earlier exemption in April, could disrupt global gold trade flows and the U.S. future market, MUFG analysts say in a note. Markets are now turning attention to Tuesday's inflation data for hints on the U.S. Federal Reserve's pathway towards monetary policy easing, as lower interest rates typically boost non-interest bearing bullion's appeal, MUFG adds.(joseph.hoppe@wsj.com)

By Dominic Chopping

Orsted shares slumped after the company halted plans to sell a stake in a U.S. offshore wind project and proposed a rights issue that could raise $9.4 billion as it seeks fresh funds to continue its offshore wind construction projects.

Shares were 24% lower in early European trade, nearing an all-time low.

The decision comes after developments in the U.S. wind market disrupted the Danish renewable-energy company's asset sale plans.

Orsted said Monday that it planned to offer new shares to existing shareholders, with the Danish state as the majority owner committing to subscribe for its pro rata share, to raise gross proceeds of 60 billion Danish kroner ($9.36 billion).

The company has faced a challenging time since it made an aggressive push into the U.S. offshore wind market. Having struggled with supply-chain bottlenecks, higher interest rates and trouble getting tax credits, it launched a restructuring last year after deciding to pull out of two high-profile wind projects off the coast of New Jersey.

The plan includes a comprehensive divestment program to free-up funds for investments in its most financially attractive projects, ensure a stronger balance sheet and support a solid investment grade rating.

As part of those plans, Orsted planned a partial sale of its Sunrise Wind project off the coast of New York that has previously faced supply chain and construction challenges that resulted in hundreds of millions of dollars in impairments.

The industry also faces headwinds from a Trump administration that is opposed to wind energy, with President Trump suspending new federal wind leases shortly after his inauguration. Trump's tax-and-spending bill will see a phasing out of renewable energy tax credits while he has slapped tariffs on EU imports that include hefty duties on steel and aluminum.

The company said that following the recent material adverse development in the U.S. offshore wind market, it's not possible to complete the planned partial divestment and associated funding of Sunrise Wind on favorable terms. That means Orsted will have to fund the entire project construction itself, leading to a funding requirement of 40 billion kroner.

"Given the unprecedented regulatory development in the U.S., we have made a comprehensive assessment of all options," said Chair Lene Skole. "The rights issue will strengthen Orsted's capital structure and provide financial robustness in the years 2025 through 2027, during which we'll deliver on our 8.1 gigawatt offshore wind construction portfolio."

Proceeds of the rights issue will be used to cover funding requirements from a full ownership of Sunrise Wind, strengthen the capital structure, provide flexibility in offshore partnerships and divestments and boost resources to pursue opportunities in core offshore wind markets in Europe and select markets in Asia Pacific.

An extraordinary general meeting will be called for Sept. 5 to approve the rights issue.

It said separately that it maintains full-year guidance for earnings before interest, taxes, depreciation and amortization excluding earnings from new partnership agreements and impacts from cancellation fees of between 25 billion and 28 billion kroner.

It lifted its investment plans for the years between 2025 and 2027 to 145 billion kroner from 130 billion kroner and expects to report Ebitda excluding new partnerships and cancellation fees in excess of 28 billion kroner in 2026 and in excess of 32 billion kroner in 2027.

It reported second-quarter Ebitda excluding new partnerships and cancellation fees of 5.34 billion kroner, up from 5.27 billion kroner a year prior and versus a FactSet consensus of 4.81 billion kroner.

Write to Dominic Chopping at dominic.chopping@wsj.com