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By Sabrina Valle

HOUSTON (Reuters) – Exxon Mobil said on Monday it plans to start producing lithium from subsurface wells by 2027 to provide supplies of the key metal used in electric-car batteries and advanced electronics.

Oil majors are investing in the electrification sector as governments in the United States and Europe set programs to promote wider use of electric vehicles and reduce fossil-fuel consumption.

Exxon said it will start production from briny waters pumped out of the ground in an area in the state of Arkansas known to hold significant lithium deposits to help develop a domestic source of the metal.

“In the long term, lithium really is a global opportunity,” said Dan Ammann, president of Exxon’s Low Carbon business unit. “We are starting here because there is an urgent need to ramp up domestic production of these critical materials.”

Exxon plans to supply lithium for well over 1 million EVs per year and become a leading supplier of the metal by 2030. Analysts at financial firm TD Cowen estimate its goal would require some $2 billion in capital expenditures to provide 50,000 tonnes, a volume that could generate $800 million in potential cash.

Ammann did not disclose how much Exxon intends to invest in the lithium business, or when it might become profitable.

The largest U.S. oil company said it would use conventional oil and gas drilling methods to access lithium-rich saltwater from reservoirs about 10,000 feet underground and then use direct lithium extraction (DLE) technology to separate lithium from the saltwater.

The company’s majority-owned Canadian affiliate, Imperial Oil, also has invested in a lithium-extraction pilot project in Alberta, Canada.

Exxon plans to begin production with partner Tetra Technologies, Reuters exclusively reported on Saturday. It will produce the metal onsite and sell it under the brand name Mobil Lithium, the company said on Monday.

Exxon had acquired the rights to 120,000 gross acres of the Smackover Formation in Arkansas, a potential hub of activity for lithium brine aspirants, earlier this year.

European oil rivals BP and Shell have invested in EV charging stations as part of their energy transition strategy. A Deloitte study released earlier this year showed investors would like to see more spending on such technologies.

Exxon, which invented the rechargeable lithium-ion battery in the 1970s, but stepped away from the technology, has no plans to invest in EV charging stations, Exxon’s Ammann said.

It wants to supply lithium for EV batteries, consumer electronics and energy storage systems that can hold electricity generated from intermittent solar and wind power.

There are about 280 million vehicles in the United States today, and fewer than 3 million are EVs, or about 1% of the total, Ammann said.

“There is still 99% to go, which suggests it is a very, very big opportunity,” he said.

(Reporting by Sabrina Valle in Houston and Sourasis Bose in Bengaluru; Editing by Gary McWilliams, Bernadette Baum and Matthew Lewis)

By Victoria Waldersee and Nick Carey

BERLIN/LONDON (Reuters) – After years of accelerating growth, Europe’s electric car sales appear to be entering a go-slow zone as drivers wait for better, cheaper models that are two to three years down the road.

Fully-electric sales in Europe were up 47% in the first nine months of 2023, but instead of celebrating, automakers including Tesla, Volkswagen and Mercedes-Benz sounded a sombre note.

High interest rates and a subdued market are putting customers off, they warned, with Volkswagen’s EV order intake half what it was last year.

Dealers in Germany and Italy as well as research by four global data analysis firms say there is more behind the slower uptake than economic uncertainty, with the consumers unconvinced that EVs meet their safety, range and price needs.

“The main problem is uncertainty,” said Thomas Niedermayer, head of a 45-year-old family-owned Bavarian car dealership.

“Many assume that the technology will improve and would rather wait three years for the next model than buy a vehicle now that will quickly lose value.”

Take Flavia Garcia and Tom Carvell in Edinburgh, Scotland.

Their 15-year-old hand-me-down Toyota Auris, nicknamed Martina, needs replacing. With a petrol and diesel car ban nearing, the couple would consider an EV, but are put off by a lack of charging infrastructure, battery life fears and price.

AutoTrader says new EVs in Britain are still on average 33% more expensive than fossil-fuel models.

And most new models in the pipeline targeting entry-level consumers will not hit the market before 2025 at the earliest – by which time they will be contending with an expanded Chinese line-up from BYD to Nio in Europe.

“You want to do the right thing for the environment, but it feels like you’re setting yourself up for a very expensive investment that will make your life that bit more complicated,” Garcia, a 29-year-old corporate media director, said.

“We’ll probably get a hybrid first”.

FALLING BEHIND

Critics have long warned that a lack of affordable EVs would eventually stall the steep sales growth boosted by early adopters and corporate fleets.

A weaker performance in September, consumer sentiment surveys and bleak commentary from carmakers and dealers indicates that low growth era may have arrived.

U.S. automakers, though further behind on the transition to EVs, are also feeling the pinch. Ford and GM warned recently they were delaying the launch of cheaper EV models and pulling back on spending due to weaker demand and higher costs in the wake of new United Auto Worker contracts.

But the problem is cyclical.

Demand will remain slow for as long as there are no cheaper EVs available, Felipe Munoz of JATO Dynamics said of the slowdown in sales in Europe in September.

“From a regulatory standpoint, they don’t have to push product out right now – they can afford to focus on profitability,” said Alistair Bedwell, head of powertrain forecasting at GlobalData.

“But they need to have an eye on Tesla and the Chinese brands, because they don’t want to get too far behind.”

Intention to buy an EV has stayed constant in Germany over the past year, a poll by consumer research firm The Langston Co showed – meaning that although the number of EVs being sold is rising, the number of people wanting to buy an EV is not.

Growing sales may simply be a sign that carmakers who were struggling to produce EVs because of supply chain bottlenecks can finally meet backed up orders, rather than a sign of rising demand, said The Langston Co’s insights manager Ben DuCharme.

Philip Nothard, insight director at dealer services firm Cox Automotive, said low residual values also put buyers off as companies and many consumers choose new cars based on what they can sell them for a few years down the line.

“We call it the valley of death, which we will be going through in 2024 to 2027: low residual values, high supply, and low demand,” Nothard added.

(Reporting by Victoria Waldersee, Nick Carey; Additional reporting by Giulio Piovaccari in Rome, Paul Lienert in Detroit; Graphics by Sumanta Sen; Editing by Alexander Smith)

By Paul Carsten

LONDON -Oil prices rose on Monday, after OPEC issued a report that countered market concern over waning demand in the United States and China, compounded by mixed signals from the U.S. Federal Reserve.

Brent crude futures for January were up 73 cents at $82.16 a barrel by 1445 GMT, having lost $1 in early trading, while U.S. West Texas Intermediate (WTI) crude futures for December were up 70 cents at $77.87.

Despite some crude price losses being recouped on Friday as Iraq voiced support for oil production cuts by the OPEC+ producer group, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, they still fell about 4% on the week to register the first three-week losing streak since May.

In a monthly report on Monday, OPEC said that oil market fundamentals remained strong and blamed speculators for a drop in prices. OPEC made a slight increase to its 2023 forecast for global oil demand growth and stuck to its relatively high 2024 prediction.

“The OPEC monthly oil market report appeared to push back against demand concerns, referencing overblown negative sentiment around Chinese demand while raising demand growth forecasts for this year and leaving them unchanged for next,” Craig Erlam, senior market analyst at OANDA, said in a note on Monday.

Investors had been worried after the U.S. Energy Information Administration (EIA) last week said that the country’s crude oil production this year will rise by slightly less than previously expected and that demand will fall.

Next year, per capita U.S. gasoline consumption could fall to the lowest level in two decades, it said.

Markets were also wary of potential U.S. policy tightening after Federal Reserve Chair Jerome Powell said last week that it could raise interest rates again if inflation isn’t curbed.

More hawkish Fed speak is “not a prospect that crude oil will welcome, given that recent data in China and the U.S. has brought growth fears back to the surface”, said IG market analyst Tony Sycamore.

Weak economic data last week from China, the world’s biggest crude oil importer, also raised fears of faltering demand. Chinese refiners asked for less supply for December from Saudi Arabia, the world’s largest exporter.

China’s consumer prices fell to pandemic-era lows last month, sparking concern about the country’s economic recovery.

Still, if WTI approaches $75 a barrel, “we will likely see support buying on expectations that Saudi Arabia and Russia would decide to continue their voluntary supply cuts after December”, said Hiroyuki Kikukawa, president of NS Trading, part of Nissan Securities.

Last week top oil exporters Saudi Arabia and Russia, part of OPEC+, confirmed they would continue with additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to drag on crude markets.

The next OPEC+ meeting is scheduled for Nov. 26.

(Reporting by Paul Carsten in London and Yuka Obayashi and Colleen HoweEditing by Bernadette Baum, Louise Heavens and David Goodman)

By Paul Carsten

LONDON – Oil prices held steady on Monday, with market caution heightened by waning demand in the United States and China as well as mixed signals from the U.S. Federal Reserve.

Brent crude futures for January were up 19 cents at $81.62 a barrel by 1250 GMT, having lost $1 in early trading, while U.S. West Texas Intermediate (WTI) crude futures for December were up 14 cents at $77.31.

Despite some losses being recouped on Friday as Iraq voiced support for oil production cuts by the OPEC+ group comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, they still fell about 4% on the week to register the first three-week losing streak since May.

“Investors are more focused on slow demand in the United States and China while worries over potential supply disruptions from the Israel-Hamas conflict have receded somewhat,” said Hiroyuki Kikukawa, president of NS Trading, part of Nissan Securities.

The U.S. Energy Information Administration (EIA) last week said that the country’s crude oil production this year will rise by slightly less than previously expected and that demand will fall.

Next year, per capita U.S. gasoline consumption could fall to the lowest level in two decades, it said.

Markets were also wary of potential U.S. policy tightening after Federal Reserve Chair Jerome Powell said last week that it could raise interest rates again if inflation isn’t curbed.

More hawkish Fed speak is “not a prospect that crude oil will welcome, given that recent data in China and the U.S. has brought growth fears back to the surface”, said IG market analyst Tony Sycamore.

Weak economic data last week from China, the world’s biggest crude oil importer, also raised fears of faltering demand. Chinese refiners asked for less supply for December from Saudi Arabia, the world’s largest exporter.

China’s consumer prices fell to pandemic-era lows last month, sparking concern about the country’s economic recovery.

Still, if WTI approaches $75 a barrel, “we will likely see support buying on expectations that Saudi Arabia and Russia would decide to continue their voluntary supply cuts after December”, NS Trading’s Kikukawa said.

Last week top oil exporters Saudi Arabia and Russia, part of OPEC+, confirmed they would continue with additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to drag on crude markets.

OPEC on Monday said oil that market fundamentals remained strong and blamed speculators for a drop in prices. The producer group slightly raised its 2023 forecast for global oil demand growth and stuck to its relatively high 2024 prediction.

The next OPEC+ meeting is scheduled for Nov. 26.

(Reporting by Paul Carsten in London and Yuka Obayashi and Colleen Howe; Editing by Bernadette Baum, Louise Heavens and Dvaid Goodman)

(Reuters) -Google-parent Alphabet said on Monday it had dissolved its stake in trading app operator Robinhood Markets.

The disclosure comes months after Alphabet slashed its stake in the company by nearly 90%. It had around 612,214 Robinhood shares after that sale.

Alphabet had reportedly invested in Robinhood when the latter was an unlisted startup that had captured the enthusiasm of retail traders with its commission-free trades and easy-to-use interface.

As economic conditions turned murky because of the Federal Reserve’s rate hikes last year, the app lost some of its charm as its customer base stayed on the sidelines.

In its third quarter earnings report last week, Robinhood missed Wall Street estimates for revenue, weighed by a slowdown in trading.

(Reporting by Niket Nishant in Bengaluru; Editing by Pooja Desai)

(Reuters) -U.S. companies across sectors such as food and beverage makers and manufacturers of glucose monitors are facing investor questions over the risk to future sales from the growing popularity of promising weight-loss treatments.

Drugs in a class known as GLP-1 such as Novo Nordisk’s Wegovy and Ozempic as well as Eli Lilly’s Mounjaro and Zepbound have been shown to help control blood sugar and dramatically lower weight in clinical trials.

Novo Nordisk on Saturday presented data showing that the heart protective benefits of Wegovy are not solely due to weight loss.Here’s what companies have said about the potential impact:

RETAILERS, FOOD AND BEVERAGE COMPANIES

Conagra might consider changing portion sizes of its snacks if the rising use of weight-loss drugs leads to a change in food consumption patterns.

Walmart expects revenues from its health and wellness products to increase in the second half of the year, mainly due to the popularity of weight-loss drugs.

PepsiCo Chief Financial Officer Hugh Johnston has said the company is “not seeing any impact” yet from the popularity of weight-loss drugs.

Coca-Cola CEO James Quincey said the company was monitoring what impact, if any weight-loss drugs will have.

Hershey’s CEO Michele Buck said the use of the drugs was not materially impacting the chocolate maker’s business.

Keurig Dr Pepper CEO Robert Gamgort said it was not seeing any impact from the use of the drugs on coffee consumption.

DIALYSIS SERVICES PROVIDERS

Germany’s Fresenius Medical Care said that use of Ozempic and other drugs of the same class would have an overall neutral effect on how many patients would require its kidney dialysis services in the future.

Davita is closely monitoring developments related to the drug and expects limited impact from use of the drugs, since they may only benefit some kidney disease patients.

MEDICAL DEVICE MAKERS

Johnson & Johnson’s third-quarter sales for devices used in abdomen surgeries was hit by a slowdown in demand for weight-loss and other procedures, as many obese patients turned to Wegovy and Ozempic.

J&J Chief Financial Officer Joseph Wolk said use of the drugs could eventually make patients eligible for procedures like hip and knee replacements or other orthopedic surgeries.

Abbott Laboratories, which makes glucose monitoring products, has said that the market was overestimating the impact to its sales from growing popularity of the drugs.

Abbott CEO Robert Ford has said diabetes patients could end up using glucose monitors with the weight-loss drugs in the long term. Dexcom, which also makes such monitors, said something similar in late October.

Insulet Corp expects that the use of Ozempic and Mounjaro could delay the time for patients to become dependent on insulin, but does not expect its long-term market for insulin pumps to be impacted.

Surgical robots maker Intuitive Surgical said the U.S. growth rate for weight-loss surgery was slowing as patients consider using the new drugs instead.

However, Intuitive does not expect patients to stay on these drugs for longer than a year or two.

Boston Scientific expects the impact from weight loss drugs on its heart devices to be “very limited” in the short term and “minor” in the long term.

Michael Farrell, CEO of Resmed, which makes devices to treat sleep apnea, said on an October investor call the company is “tracking many thousands of patients on GLP-1 and we’re seeing maintenance of adherence. We’re seeing maintenance of resupply programs and really no change”.

DRUG DISTRIBUTORS

Cencora, formerly called AmerisourceBergen, Cardinal Health and McKesson have flagged potential boost to revenues this year owing to the growing demand for weight-loss drugs.

(Reporting by Bhanvi Satija, Ananya Mariam Rajesh and Leroy Leo in Bengaluru; Editing by Mrigank Dhaniwala and Arun Koyyur)

By Paul Carsten

LONDON -Oil prices wavered on Monday, as renewed concerns over waning demand in the United States and China, coupled with mixed signals from the U.S. Federal Reserve, kept markets uncertain.

Brent crude futures for January were down 8 cents at $81.35 a barrel at 0916 GMT, after losing $1 in earlier trading, while the U.S. West Texas Intermediate (WTI) crude futures for December were at $77.11, down 6 cents.

Prices gained nearly 2% on Friday as Iraq voiced support for oil cuts by OPEC+, but lost about 4% for the week, recording a three-week losing streak for the first time since May.

“Investors are more focused on slow demand in the United States and China while worries over the potential supply disruptions from the Israel-Hamas conflict have somewhat receded,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

The U.S. Energy Information Administration (EIA) said last week crude oil production in the United States this year will rise by slightly less than previously expected while demand will fall.

Next year, per capita U.S. gasoline consumption could fall to the lowest level in two decades, it said.

Markets were wary of potential U.S. policy tightening after Federal Reserve Chair Jerome Powell said last week that it could raise interest rates again if progress on curbing inflation stalls.

More hawkish Fed speak is “not a prospect that crude oil will welcome given that recent data in China and the U.S. has brought growth fears back to the surface,” said Tony Sycamore, a market analyst at IG.

Weak economic data last week from China, the world’s biggest crude oil importer, increased fears of faltering demand, with refiners asking for less supply from Saudi Arabia, the world’s largest exporter, for December.

In October, China’s consumer prices fell to pandemic-era lows, sparking concern about the country’s economic recovery.

Still, if WTI approaches $75 a barrel, “we will likely see support buying on expectations that Saudi Arabia and Russia would decide to continue their voluntary supply cuts after December,” NS Trading’s Kikukawa said.

Top oil exporters Saudi Arabia and Russia confirmed last week they would continue with their additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to drag on crude markets.

OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, will meet on Nov. 26.

(Reporting by Paul Carsten in London and Yuka Obayashi and Colleen HoweEditing by Lincoln Feast, Bernadette Baum and Louise Heavens)

By Yuka Obayashi and Colleen Howe

BEIJING – Oil prices fell on Monday, erasing gains from Friday as renewed concerns over waning demand in the United States and China, coupled with mixed signals from the U.S. Federal Reserve, dented market sentiment.

Brent crude futures for January were down 61 cents, or 0.75%, at $80.82 a barrel at 0800 GMT, while the U.S. West Texas Intermediate (WTI) crude futures for December were at $76.56, down 61 cents, or 0.79%.

Prices gained nearly 2% on Friday as Iraq voiced support for oil cuts by OPEC+, but lost about 4% for the week, notching their third weekly losses for the first time since May.

“Investors are more focused on slow demand in the United States and China while worries over the potential supply disruptions from the Israel-Hamas conflict have somewhat receded,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

The U.S. Energy Information Administration (EIA) said last week crude oil production in the United States this year will rise by slightly less than previously expected while demand will fall.

Next year, per capita U.S. gasoline consumption could fall to the lowest level in two decades, it said.

Markets were wary of potential U.S. policy tightening after Federal Reserve Chair Jerome Powell said last week that it could raise interest rates again if progress on curbing inflation stalls.

With financial conditions looser after a Friday jump in stock markets, “there is a good chance of more hawkish Fed speak this week,” said Tony Sycamore, a market analyst at IG.

That is “not a prospect that crude oil will welcome given that recent data in China and the U.S. has brought growth fears back to the surface,” he said.

Weak economic data last week from China, the world’s biggest crude oil importer, increased fears of faltering demand.

China’s consumer prices fell to pandemic-era lows in October, casting doubts on the strength of the country’s economic recovery.

Additionally, refiners in China asked for less supply from Saudi Arabia, the world’s largest exporter, for December.

Still, Kikukawa said oil prices would be supported if WTI approaches $75 a barrel.

“If the market falls further, we will likely see support buying on expectations that Saudi Arabia and Russia would decide to continue their voluntary supply cuts after December,” Kikukawa said.

Top oil exporters Saudi Arabia and Russia confirmed last week they would continue with their additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to drag on crude markets.

OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, will meet on Nov. 26.

On the supply side, U.S. energy firms cut the number of oil rigs operating for a second week in a row to their lowest since January 2022, energy services firm Baker Hughes said. The rig count points to future output.

(Reporting by Yuka Obayashi and Colleen Howe; Editing by Lincoln Feast and Bernadette Baum)

A look at the day ahead in European and global markets from Kevin Buckland

Chip stocks gave Asian equity investors some small bit of cheer to start the week, picking up where Wall Street left off while U.S. yields stayed subdued, which kept a lid on the dollar, too.

But elsewhere, bears were firmly in control.

A lot of that can likely be traced to China, rather than to the Moody’s downgrade to the outlook for the U.S. sovereign debt rating, which investors have taken in stride.

The Chinese consumer has so far refused to ride to the rescue of the world’s second-largest economy. Monthly retail sales data is due on Wednesday but the country’s Singles Day shopping extraganza over the weekend – equivalent to Black Friday sales elsewhere – recorded only meagre growth.

Looking across the region, Japan’s tech-heavy Nikkei managed to keep its head above water, buoyed by gains for its two biggest chip-related shares; Taiwan’s benchmark advanced 0.8%.

But Hong Kong flipped from early gains to a loss of about 0.15%. A sub-index of tech shares remained firmly positive but another of mainland property developers slumped more than 1%.

China’s blue chips fell 0.5%.

U.S. retail sales data is also due on Wednesday, preceded by CPI a day earlier. The figures could be key in helping the Federal Reserve to plot the path ahead for interest rates, including whether another hike is needed.

The Fed’s rhetoric has taken a hawkish turn recently, but markets so far are more focused on the data, particularly the soft non-farm payrolls numbers at the start of this month.

ECB President Christine Lagarde last week said that rates will stay restrictive at least for several quarters. Lagarde deputy Luis de Guindos has his say a little later today, giving the keynote speech to kick off Euro Finance Week.

Elswhere, Bank of England board member Catherine L. Mann will take the podium, after the bank’s chief economist, Huw Pill, said last week its projection that monetary policy will need to remain restrictive for an extended period should not be taken as a promise.

Key developments that could influence markets on Monday:

-ECB’s de Guindos, BoE’s Mann speak

-UK Rightmove house prices

-Sweden SEB housing

-New York Fed consumer expectations survey

(Reporting by Kevin Buckland; Editing by Edmund Klamann)

By Yuka Obayashi and Colleen Howe

BEIJING -Oil prices backed off on Monday, reversing their Friday rally, as renewed concerns over waning demand in the United States and China dented market sentiment.

Brent crude futures for January were down 71 cents, or 0.87%, at $80.72 a barrel at 0400 GMT, while the U.S. West Texas Intermediate (WTI) crude futures for December were at $76.49, down 68 cents, or 0.88%.

Both benchmarks were well below the 100-day moving average of $86.61 a barrel for WTI and $82.31 a barrel for Brent.

Prices gained nearly 2% last Friday as Iraq voiced support for oil cuts by OPEC+, but lost about 4% for the week, notching their third weekly losses for the first time since May.

“Investors are more focused on slow demand in the United States and China while worries over the potential supply disruptions from the Israel-Hamas conflict have somewhat receded,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

The U.S. Energy Information Administration (EIA) said last week crude oil production in the United States this year will rise by slightly less than previously expected while demand will fall.

Next year, per capita U.S. gasoline consumption could fall to the lowest level in two decades, it said.

Weak economic data last week from China, the world’s biggest crude oil importer, also increased fears of faltering demand.

China’s consumer prices fell to pandemic-era lows in October, casting doubts on the strength of the country’s economic recovery.

Additionally, refiners in China asked for less supply from Saudi Arabia, the world’s largest exporter, for December.

Still, Kikukawa said oil prices would be supported if WTI approaches $75 a barrel.

“If the market falls further, we will likely see support buying on expectations that Saudi Arabia and Russia would decide to continue their voluntary supply cuts after December,” Kikukawa said.

Top oil exporters Saudi Arabia and Russia confirmed last week they would continue with their additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to drag on crude markets.

OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, will meet on Nov. 26.

On the supply side, U.S. energy firms cut the number of oil rigs operating for a second week in a row to their lowest since January 2022, energy services firm Baker Hughes said. The rig count points to future output.

(Reporting by Yuka Obayashi and Colleen HoweEditing by Shri Navaratnam and Lincoln Feast)