Oil gains about 3%; records loss for week after Trump tariff threat - Reuters:
Oil prices gained about 3% on Friday a day after recording their biggest daily drop in several years on U.S. President Donald Trump’s vow to impose more tariffs on Chinese imports.
For the week, crude oil benchmarks recorded a loss.
Washington’s new tariffs on China, due to take effect on Sept. 1, intensify the trade war between the world’s top two economies. Any resulting economic slowdown could hurt crude demand.
Brent crude LCOc1 futures for October delivery settled at $61.89 a barrel, up $1.39, or 2.30%. The global benchmark slid more than 7% on Thursday, the steepest daily drop in more than three years.
WTI crude CLc1 futures for September delivery settled at $55.66 a barrel, rising $1.71, or 3.17%, after Thursday’s nearly 8% plunge, the biggest loss in more than four years.
Friday, 2 August 2019
#SaudiArabia Is Steering Ever More Oil to China, Draining U.S. - Bloomberg
Saudi Arabia Is Steering Ever More Oil to China, Draining U.S. - Bloomberg:
Signals from oil tankers last month suggest that Saudi Arabia is sending an ever-larger portion of its crude to China -- with the U.S. losing out.
Saudi Arabia’s observed exports to China soared to 1.74 million barrels a day in July, the highest since Bloomberg began tracking the tanker shipments in January 2017. At the same time, the kingdom’s shipments to the U.S. appear to have tumbled to 161,000 barrels a day, the lowest during that same period.
The divergence illustrates the current state of energy geopolitics. The Organization of Petroleum Exporting Countries -- of which Saudi Arabia is the largest producer -- and a group of allies last month agreed to extend production cuts. A big reason behind the curbs is soaring U.S. output, which is near record levels in weekly data. U.S. inventories have dropped in recent months as Saudi shipments to the country have declined.
Signals from oil tankers last month suggest that Saudi Arabia is sending an ever-larger portion of its crude to China -- with the U.S. losing out.
Saudi Arabia’s observed exports to China soared to 1.74 million barrels a day in July, the highest since Bloomberg began tracking the tanker shipments in January 2017. At the same time, the kingdom’s shipments to the U.S. appear to have tumbled to 161,000 barrels a day, the lowest during that same period.
The divergence illustrates the current state of energy geopolitics. The Organization of Petroleum Exporting Countries -- of which Saudi Arabia is the largest producer -- and a group of allies last month agreed to extend production cuts. A big reason behind the curbs is soaring U.S. output, which is near record levels in weekly data. U.S. inventories have dropped in recent months as Saudi shipments to the country have declined.
Fresh U.S. tariffs on China likely to weaken oil demand further: BofA - Reuters
Fresh U.S. tariffs on China likely to weaken oil demand further: BofA - Reuters:
The latest round of U.S. tariffs on China could weaken global oil demand and could also push Beijing to buy Iranian oil as a retaliation and lower global benchmark Brent crude prices by as much as $20-$30 per barrel, Bank Of America Merill Lynch said on Friday.
“Global oil consumption growth is running at the weakest levels in nearly a decade ... Protectionism has taken a big toll on global industrial activity. We estimate that the latest round of U.S. tariffs on China could weaken global oil demand by an additional 250 to 500 thousand barrels per day,” BofA analysts said in a note.
Also, a decision by China to reinitiate Iran crude purchases could send oil prices into a tailspin, the bank added.
The latest round of U.S. tariffs on China could weaken global oil demand and could also push Beijing to buy Iranian oil as a retaliation and lower global benchmark Brent crude prices by as much as $20-$30 per barrel, Bank Of America Merill Lynch said on Friday.
“Global oil consumption growth is running at the weakest levels in nearly a decade ... Protectionism has taken a big toll on global industrial activity. We estimate that the latest round of U.S. tariffs on China could weaken global oil demand by an additional 250 to 500 thousand barrels per day,” BofA analysts said in a note.
Also, a decision by China to reinitiate Iran crude purchases could send oil prices into a tailspin, the bank added.
Exxon Mobil profit sinks on weakness in natural gas, chemicals, refining - Reuters
Exxon Mobil profit sinks on weakness in natural gas, chemicals, refining - Reuters:
Exxon Mobil Corp (XOM.N) reported a 21% drop in quarterly profit on Friday, hit by weaker natural gas prices, lower refining profits and a loss in its U.S. chemicals business.
The largest U.S. oil producer’s net income fell to $3.13 billion, or 73 cents per share, in the second quarter, from $3.95 billion, or 92 cents per share, last year.
Analysts had expected Exxon to report earnings of 66 cents per share, according to data from Refinitiv. Analysts sharply lowered their expectations after the company disclosed weaker results last month, and had expected Exxon to earn 97 cents a share early in July.
Exxon Mobil Corp (XOM.N) reported a 21% drop in quarterly profit on Friday, hit by weaker natural gas prices, lower refining profits and a loss in its U.S. chemicals business.
The largest U.S. oil producer’s net income fell to $3.13 billion, or 73 cents per share, in the second quarter, from $3.95 billion, or 92 cents per share, last year.
Analysts had expected Exxon to report earnings of 66 cents per share, according to data from Refinitiv. Analysts sharply lowered their expectations after the company disclosed weaker results last month, and had expected Exxon to earn 97 cents a share early in July.
Chevron profit rises 26.3% on higher output - Reuters
Chevron profit rises 26.3% on higher output - Reuters:
Chevron Corp reported a 26.3% rise in quarterly profit on Friday, as higher production more than offset lower crude oil and natural gas prices and a rise in expenses.
The No. 2 U.S. oil and natural gas producer’s daily production of oil and gas rose 9.1% to 3.08 million barrels.
Net income attributable to the company rose to $4.31 billion, or $2.27 per share, in the second quarter ended June 30, from $3.41 billion, or $1.78 per share.
Chevron Corp reported a 26.3% rise in quarterly profit on Friday, as higher production more than offset lower crude oil and natural gas prices and a rise in expenses.
The No. 2 U.S. oil and natural gas producer’s daily production of oil and gas rose 9.1% to 3.08 million barrels.
Net income attributable to the company rose to $4.31 billion, or $2.27 per share, in the second quarter ended June 30, from $3.41 billion, or $1.78 per share.
Oil prices rebound more than 2% after plunging on Trump's tariff plan - Reuters
Oil prices rebound more than 2% after plunging on Trump's tariff plan - Reuters:
Oil prices rose more than 2% on Friday, regaining some ground after their biggest falls in years on U.S. President Donald Trump’s threat to impose more tariffs on Chinese imports.
The move, due to take effect on Sept. 1, intensifies a trade war between the world’s top two economies and oil consumers that has disrupted global supply chains and roiled financial markets. Any resulting economic slowdown could dent oil demand.
Benchmark Brent LCOc1 rose $1.56, or 2.6%, to $62.06 a barrel by 1210 GMT on Friday, after slumping more than 7% on Thursday, their steepest drop in more than three years.
U.S. crude gained $1.29, or 2.4%, to $55.24 on Friday, after tumbling nearly 8% the previous day when they posted their biggest drop in more than four years.
Oil prices rose more than 2% on Friday, regaining some ground after their biggest falls in years on U.S. President Donald Trump’s threat to impose more tariffs on Chinese imports.
The move, due to take effect on Sept. 1, intensifies a trade war between the world’s top two economies and oil consumers that has disrupted global supply chains and roiled financial markets. Any resulting economic slowdown could dent oil demand.
Benchmark Brent LCOc1 rose $1.56, or 2.6%, to $62.06 a barrel by 1210 GMT on Friday, after slumping more than 7% on Thursday, their steepest drop in more than three years.
U.S. crude gained $1.29, or 2.4%, to $55.24 on Friday, after tumbling nearly 8% the previous day when they posted their biggest drop in more than four years.
JPMorgan Is Banking on Pent-Up Demand to Reignite #Turkey IPOs - Bloomberg
JPMorgan Is Banking on Pent-Up Demand to Reignite Turkey IPOs - Bloomberg:
JPMorgan Chase & Co. expects Turkey’s capital markets to come back to life as inflation and interest rates decline, reigniting investor interest as the economy stabilizes.
“IPO demand is accumulating in Turkey and when markets normalize, there should be initial public offerings, secondary public offerings and accelerated book buildings,” Mustafa Bagriacik, chief executive officer of the lender’s Istanbul unit, said in an interview. “Demand and risk appetite for Turkey will be there once predictability is there; because investors are generally underweight Turkey.”
Initial public offerings have just about ground to a halt, with only three share sales this year worth $23 million, as economic growth stalled, and in the wake of the lira’s crash to an all-time low at the end of 2018. The currency has since rebounded and is the best-performing emerging-market currency this half, while new central bank governor Murat Uysal cut rates by a record last month, citing an improved inflation outlook.
JPMorgan Chase & Co. expects Turkey’s capital markets to come back to life as inflation and interest rates decline, reigniting investor interest as the economy stabilizes.
“IPO demand is accumulating in Turkey and when markets normalize, there should be initial public offerings, secondary public offerings and accelerated book buildings,” Mustafa Bagriacik, chief executive officer of the lender’s Istanbul unit, said in an interview. “Demand and risk appetite for Turkey will be there once predictability is there; because investors are generally underweight Turkey.”
Initial public offerings have just about ground to a halt, with only three share sales this year worth $23 million, as economic growth stalled, and in the wake of the lira’s crash to an all-time low at the end of 2018. The currency has since rebounded and is the best-performing emerging-market currency this half, while new central bank governor Murat Uysal cut rates by a record last month, citing an improved inflation outlook.
Saudis Lead $550 Million Investment in U.K. Startup Babylon - Bloomberg
Saudis Lead $550 Million Investment in U.K. Startup Babylon - Bloomberg:
Babylon Healthcare Services Ltd., the fast-growing mobile medical consultation service, said it raised $550 million to expand into the U.S. and Asia.
The investment includes capital from new investors such as Saudi Arabia’s Public Investment Fund, and valued the company at more than $2 billion, Babylon said in a statement Friday.
“We have seen significant demand from partners across the U.S. and Asia," said Ali Parsa, London-based Babylon’s founder and chief executive officer. "While the burden of healthcare is global, the solutions have to be localized to meet the specific needs and culture of each country.”
Babylon Healthcare Services Ltd., the fast-growing mobile medical consultation service, said it raised $550 million to expand into the U.S. and Asia.
The investment includes capital from new investors such as Saudi Arabia’s Public Investment Fund, and valued the company at more than $2 billion, Babylon said in a statement Friday.
“We have seen significant demand from partners across the U.S. and Asia," said Ali Parsa, London-based Babylon’s founder and chief executive officer. "While the burden of healthcare is global, the solutions have to be localized to meet the specific needs and culture of each country.”
Oil Set for Loss After Biggest Slump in 4 Years on Trump Tariffs - Bloomberg
Oil Set for Loss After Biggest Slump in 4 Years on Trump Tariffs - Bloomberg:
Oil is set for a weekly loss after the steepest one-day drop in more than four years as President Donald Trump abruptly escalated the trade war with China, stoking concerns over slowing growth.
While futures in New York rebounded on Friday, prices are still far from recovering the 7.9% slump on Thursday, the most since February 2015. Trump said 10% levies will be imposed Sept. 1 on $300 billion in Chinese goods after a round of trade talks on Wednesday ended without a breakthrough. The threat compounded fears about declining American manufacturing activity after the Federal Reserve dashed prospects for serial rate cuts to boost growth.
West Texas Intermediate oil for September delivery added 84 cents, or 1.6%, to $54.79 a barrel on the New York Mercantile Exchange as of 8:01 a.m. in London. The contract slid $4.63 on Thursday and is down 2.5% this week.
Brent for October settlement gained $1.16 to $61.66 a barrel on the ICE Futures Europe Exchange. Front-month prices are down 2.8% this week. The benchmark global crude traded at a premium of $6.81 to WTI for the same month.
Oil is set for a weekly loss after the steepest one-day drop in more than four years as President Donald Trump abruptly escalated the trade war with China, stoking concerns over slowing growth.
While futures in New York rebounded on Friday, prices are still far from recovering the 7.9% slump on Thursday, the most since February 2015. Trump said 10% levies will be imposed Sept. 1 on $300 billion in Chinese goods after a round of trade talks on Wednesday ended without a breakthrough. The threat compounded fears about declining American manufacturing activity after the Federal Reserve dashed prospects for serial rate cuts to boost growth.
West Texas Intermediate oil for September delivery added 84 cents, or 1.6%, to $54.79 a barrel on the New York Mercantile Exchange as of 8:01 a.m. in London. The contract slid $4.63 on Thursday and is down 2.5% this week.
Brent for October settlement gained $1.16 to $61.66 a barrel on the ICE Futures Europe Exchange. Front-month prices are down 2.8% this week. The benchmark global crude traded at a premium of $6.81 to WTI for the same month.
#SaudiArabia may cut crude oil prices to Asia in September - Reuters
Saudi Arabia may cut crude oil prices to Asia in September - Reuters:
Top oil exporter Saudi Arabia may cut prices for most of the crude grades it sells to Asia for a second straight month in September after Middle East benchmark prices weakened.
The official selling price (OSP) for flagship Arab Light crude could drop by at least 50 cents a barrel, falling below a premium of $2 a barrel for the first time in four months, a Reuters survey of five buyers in Asia showed.
The cuts would track a backwardation between prompt and third month Dubai prices that narrowed by 70 cents a barrel in July versus June. Spot prices are higher than those in future months in a backwardated market.
Top oil exporter Saudi Arabia may cut prices for most of the crude grades it sells to Asia for a second straight month in September after Middle East benchmark prices weakened.
The official selling price (OSP) for flagship Arab Light crude could drop by at least 50 cents a barrel, falling below a premium of $2 a barrel for the first time in four months, a Reuters survey of five buyers in Asia showed.
The cuts would track a backwardation between prompt and third month Dubai prices that narrowed by 70 cents a barrel in July versus June. Spot prices are higher than those in future months in a backwardated market.
Oil prices rise in Asian trading following brutal sell-off overnight | Financial Times
Oil prices rise in Asian trading following brutal sell-off overnight | Financial Times:
Oil prices recovered in Asian trading hours on Friday, just hours after crude suffered its worst one-day decline in more than three years over signs that trade tensions between the US and China are heating up again.
In afternoon trading in Asia, Brent, the international oil marker, rose 2.2 per cent to $61.84 a barrel, while West Texas Intermediate , its US equivalent, was up 1.7 per cent to $54.91.
Overnight, Brent fell 7.2 per cent to $60.50 a barrel in what was its worst one-day performance since February 2016, after US President Donald Trump announced he would slap a 10 per cent tariff on $300bn worth of imports from China from September 1.
Oil prices recovered in Asian trading hours on Friday, just hours after crude suffered its worst one-day decline in more than three years over signs that trade tensions between the US and China are heating up again.
In afternoon trading in Asia, Brent, the international oil marker, rose 2.2 per cent to $61.84 a barrel, while West Texas Intermediate , its US equivalent, was up 1.7 per cent to $54.91.
Overnight, Brent fell 7.2 per cent to $60.50 a barrel in what was its worst one-day performance since February 2016, after US President Donald Trump announced he would slap a 10 per cent tariff on $300bn worth of imports from China from September 1.
Bet on battered LNG market to bounce off the ropes | Financial Times
Bet on battered LNG market to bounce off the ropes | Financial Times:
Royal Dutch Shell could be crowned “Gassius Clay” for its position as the undisputed heavyweight champion of liquefied natural gas supplies among the energy majors.
So the company’s surprisingly bad second-quarter results, which sent its shares down more than 5 per cent on Thursday, should perhaps not be that surprising given the LNG market has become punch-drunk since the start of the year.
Prices for spot cargoes of the fuel in Asia, the core market for LNG, have fallen to less than half the level they were a year ago, as the market struggles to absorb a glut as new supplies come on stream in the US and Australia.
Royal Dutch Shell could be crowned “Gassius Clay” for its position as the undisputed heavyweight champion of liquefied natural gas supplies among the energy majors.
So the company’s surprisingly bad second-quarter results, which sent its shares down more than 5 per cent on Thursday, should perhaps not be that surprising given the LNG market has become punch-drunk since the start of the year.
Prices for spot cargoes of the fuel in Asia, the core market for LNG, have fallen to less than half the level they were a year ago, as the market struggles to absorb a glut as new supplies come on stream in the US and Australia.
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