Why Saudi Aramco Stock Is a Tough Sell on Wall -2-

0733 GMT - Oil prices are broadly steady after OPEC+ agreed to extend all production curbs into next year but also provided guidance on how it plans to unwind some of these over the coming months. The group aims to gradually phase out the 2.2 million barrels a day cuts from October 2024 to September 2025. "Whilst it was always the strategy of the 8 OPEC+ members to gradually return the 2.2 million barrels a day of extra voluntary cuts to markets given elevated spare capacity, we view the detailed timeline for unwinding them as incrementally bearish for oil prices," MUFG's Ehsan Khoman and Soojin Kim say in a report. Brent crude and WTI are both up 0.1% at $81.20 and $77.09 a barrel, respectively. Gains are also limited by hopes for a ceasefire in Gaza after the U.S. unveiled a three-phase plan last week. ([e-mail])

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Miners Seen Generating Much More Value This Year Than Last Year -- Market Talk

0556 GMT - Global miners could nearly double their economic value added, or EVA, in 2024 after a mediocre year last year, Citi analyst Ephrem Ravi says in a note. He estimates the global mining sector would generate an EVA of around US$44 billion this year, versus US$23 billion in 2023, and an economic spread of 3.8%, versus 2.0%." While a large part of the return to value-creation phase is led by strength in commodity prices and cost control, we believe miners deserve credit for maintaining capital and supply discipline," Ravi says. ([e-mail]; @RhiannonHoyle)

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Value of Premium Iron Ore May Be Overestimated -- Market Talk

0515 GMT - Miners are seeking to upgrade their iron ore to access the growing market for direct reduction iron, but Morgan Stanley analysts are wary on the current value of doing so. While there is future potential, recent price projections from producers look optimistic for at least this decade, the analysts say, pointing to estimated spreads in the range of $12-$20/ton versus actual spreads of $5-$8/ton over the past three years. They say they are "cautious that a recent widening of DR [direct reduction] spreads marks the starts of a structural trend, at least while the BF [blast furnace] market remains dominant." ([e-mail]; @RhiannonHoyle)

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Copper Rises Amid Stronger Investor Sentiment -- Market Talk

0216 GMT - Copper prices are higher in early trade amid stronger investor sentiment. A private gauge of China's factory activity grew at the fastest pace in almost two years in May, signaling faster manufacturing growth. Copper is widely used in the manufacturing and construction sectors. Meanwhile, Chile, the world's largest copper producer, recorded its lowest month of copper output in more than a year, creating supply-side issues, ANZ analysts say in a research note.The benchmark three-month LME contract is up 1.0% at $10,142.50 a ton. ([e-mail])

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(END) Dow Jones Newswires

06-03-24 0741ET