Commodities Update — Gold dips; Wheat, corn fall; Copper extends losses on global recession worries

RIYADH: Oil prices rose on Thursday, extending a cautious rally this week on signs of tight supply while the EU wrangles with Hungary over plans to ban imports from Russia, the world’s second-largest crude exporter, after it invaded Ukraine.

Brent crude futures for July settlement gained 40 cents, or 0.35 percent, to $114.43 a barrel at 0412 GMT.

US West Texas Intermediate crude futures for July delivery climbed 55 cents, or 0.5 percent, to $110.88 a barrel.

US Oil investors back energy transition plans at shareholder meetings

Shareholders of Exxon Mobil Corp. and Chevron Corp. on Wednesday voted in favor of the energy transition strategies proposed by the two largest US oil producers, following similar support of European oil firms’ climate plans.

Major oil producers this year flipped the script and won over investors with recent steps to minimize carbon emissions and as worries over energy security and fuel prices overshadowed environmental concerns at this year’s meetings.

Thirty three percent of Chevron shareholders and 28 percent of Exxon’s voted in favor of climate proposals filed by activist group Follow This at their annual shareholder meetings on Wednesday.

Chevron holders voted against a proposal for more stringent action on addressing emissions from consumers burning its fuels, known as scope 3.

At Exxon, results marked a major shift from a year-ago when activist investors secured three seats on its board, a governance landmark. 

The company has since allocated $2.5 billion per year for projects to minimize its emissions.

“One third is a shareholder rebellion,” said Follow This founder Mark van Baal, referring to the Chevron vote. 

“Together with these investors, we have to convince the other investors to vote in favor of Paris alignment as well.” 

Total’s German Leuna refinery reducing Russian crude intake

French oil major TotalEnergies’ Leuna refinery in eastern Germany is reducing its intake of Russian crude oil via the Druzhba pipeline as it has started working on a supply solution via the Polish port of Gdansk, CEO Patrick Pouyanne told shareholders in Paris on Wednesday.

Druzhba feeds not just Leuna but also the PCK Schwedt refinery, majority-owned by Russia’s Rosneft.

Poyanne said Russian oil use in May had fallen to filling 555,000 tons of refinery capacity at the plant, down from 900,000 tons last October, and 800,000 tons in February.

“In December 2022, we will have 450,0000 tons left from the contracts that we have to honor — unless sanctions are taken in the meantime — and it will be zero from 2023 onwards,” said Poyanne.

(With input from Reuters)