Iron ore dips, Oil at 2-mth highs, Galileo on a tear, BHP stays busy

Iron ore dipped, however the Dalian futures recovered overnight after tapping a one week low while copper fell for its third straight session on persistent fears about the extended Covid-19 restrictions in China.

Crude prices are at two month highs ahead of the US summer driving season in a dwindling stockpile market. The missing piece to getting the ban on Russian oil over the line is for Hungary to support the move. Hungarian Prime Minister Viktor Orban has ruled out discussing the ban at next week’s summit of the bloc’s leaders. The EU needs unanimous agreement from its 27 members to push through each set of sanctions.

Meanwhile, the gains for oil were offset by the uncertain outlook in China and news that its economic outlook is faring worse than when the pandemic first emerged. Our country’s largest trading partner’s annual growth target sits at 5.5 per cent compared to its full year growth of 2.2 per cent in 2020, so the risk for this figure may be to the downside.

Fortescue Metals Group (ASX:FMG) is funding research by quantum computing initiative Qlimate in an effort to produce cheap and green hydrogen as part of Fortescue Future Industries’ ambition to become the world’s top green energy group.

BHP (ASX:BHP) continues to be busy. Having recently unified its dual listing to a single entity on the ASX and divesting its petroleum arm to Woodside, the company has approved the first stage of its Jansen potash project and completed its Mitsui Coal divestments to Stanmore Resources. The ASX’s largest company is performing well of late. Iron ore shipments jumped to 290 million tonnes this year, while BHP shares are up more than 10 per cent over the same period.

In company news, the Mark Creasy backed Galileo Mining (ASX:GAL) has confirmed the presence of rhodium from its Norseman project in Western Australia. The company’s shares are up over 500 per cent year to date, currently trading at $1.66.

Sources: Bloomberg, FactSet