Gold 
“Russia’s plan to slash oil output delivered a pre-weekend jolt to commodity markets and set up a fascinating week ahead for crude traders.
The Kremlin move adds to a busy watch-list for coming days also including earnings from mining giants Glencore and Vale, two key monthly oil reports from OPEC and the IEA. Glencore is set to report record earnings for a tumultuous 2022, but the commodity giant’s take on this year will be a focus — especially its view on whether China will fire up demand again.
Elsewhere, crop markets are being tested by drought in South America, gold investors are watching Newmont’s $17 billion bid for Newcrest unfold, while lithium’s top producer Albemarle
should weigh in on the battery metal’s recent blip.
Crude Awakening
Russia’s plan to slash daily oil output by 500,000 barrels in March triggered an immediate sharp move higher for oil. The action is retaliation for Western efforts to cap Russian oil
prices, and injects some drama into a market that’s been starkly divided between bulls and bears. A key question is whether the cuts change supply expectations enough to nudge OPEC+ toward a softer line on output.
The Russia cuts also come amid a swirl of more positive commentary on the reinvigoration of Chinese demand as the world’s No. 2 economy ramps up after a torrid year. “Lower Russian production together with China’s reopening should tighten the oil market further over the coming quarters,” UBS analysts wrote in a report.
Next week also has the latest monthly outlooks from OPEC (Tuesday) and the International
Energy Agency (Wednesday) for their take on how demand is evolving.
Golden Deals
Newmont’s $17 billion bid for Australian gold producer Newcrest has spurred talk of a new era for mining M&A, with companies pursuing deals as they face higher costs and big
demand shifts. The metals world will be on alert for more merger activity in coming weeks and months.
Newcrest, which so far has said it’s considering Newmont’s proposal, reports its latest earnings on Thursday next week. The Newmont swoop also lends a lively backdrop to quarterlies from a
bunch of other gold miners: Barrick, the No. 2 producer after Newmont, reports Wednesday, followed by Agnico Eagle and Iamgold on Thursday.”
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