Oil Short-Sellers Make Wrong-Way Bet as China Blindsides Market - Bloomberg:
It’s getting tougher to bet on oil in the age of Trump trade tweets and Chinese retaliation, with hedge funds getting it wrong for a seventh time in nine weeks.
This time around, short-sellers made their biggest retreat in a year in the week ended Aug. 20, slashing by 25% their wagers that West Texas Intermediate crude would decline, data released Friday show. That made sense as the U.S. had just delayed sanctions against Huawei Technologies Co., offering a rare hint of progress in the trade spat that has dogged the market.
Then on Friday, optimism unraveled as China announced tariffs on U.S. oil for the first time, sending futures plunging and wiping out all of the week’s gains. The whipsawing has plagued the market all year, but it seems to be getting more unpredictable. Before the last week of June, hedge funds got the direction of crude wrong just seven times in six months.
Friday, 23 August 2019
Oil spills into U.S.-China trade war, prices slump - Reuters
Oil spills into U.S.-China trade war, prices slump - Reuters:
China said on Friday it would impose tariffs on U.S. crude oil imports for the first time, sending prices down nearly 4% to two-week lows as the escalating bilateral trade war fed worries over a slowdown in global oil demand.
Beijing said crude would be among the U.S. products hit by tariffs of 5% as of Sept. 1. U.S. President Donald Trump responded later in the day saying starting on Oct. 1, the 25-percent tariffs on $250 billion worth of Chinese goods will rise to 30%. Tariffs on remaining $300 billion due to begin on Sept. 1 will now be set at 15%, versus 10%.
U.S. West Texas Intermediate (WTI) crude futures CLc1 slumped as much as 3.8% to $53.24 a barrel on Friday, the lowest since Aug. 9, before ending the session at $54.17. The rising trade war is likely to weigh on U.S. crude more than international benchmark Brent LCOc1, market sources said.
China said on Friday it would impose tariffs on U.S. crude oil imports for the first time, sending prices down nearly 4% to two-week lows as the escalating bilateral trade war fed worries over a slowdown in global oil demand.
Beijing said crude would be among the U.S. products hit by tariffs of 5% as of Sept. 1. U.S. President Donald Trump responded later in the day saying starting on Oct. 1, the 25-percent tariffs on $250 billion worth of Chinese goods will rise to 30%. Tariffs on remaining $300 billion due to begin on Sept. 1 will now be set at 15%, versus 10%.
U.S. West Texas Intermediate (WTI) crude futures CLc1 slumped as much as 3.8% to $53.24 a barrel on Friday, the lowest since Aug. 9, before ending the session at $54.17. The rising trade war is likely to weigh on U.S. crude more than international benchmark Brent LCOc1, market sources said.
Chinese State Banks Are Said to Compete for Role on Aramco IPO - Bloomberg
Chinese State Banks Are Said to Compete for Role on Aramco IPO - Bloomberg:
Some of China’s biggest state-owned banks have been invited to pitch for the Saudi Aramco initial public offering, people with knowledge of the matter said, signaling the oil giant’s potential desire to attract Asian investors to the $100 billion listing.
Investment banking units of Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among firms competing for a role on the offering, the people said, asking not to be identified because the information is private. Senior management of some Chinese banks visited Saudi Arabia multiple times this year before Aramco officially requested proposals, one of the the people said.
A number of Asia-based dealmakers have been cutting short their vacations to finish work on the pitches, according to the people. Aramco has asked most banks to submit proposals by next week, the people said. It invited more than 20 advisory firms from the U.S., Europe and Asia to compete for a role on the offering, including some of the world’s biggest underwriters as well as a number of smaller banks, one person said.
Some of China’s biggest state-owned banks have been invited to pitch for the Saudi Aramco initial public offering, people with knowledge of the matter said, signaling the oil giant’s potential desire to attract Asian investors to the $100 billion listing.
Investment banking units of Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among firms competing for a role on the offering, the people said, asking not to be identified because the information is private. Senior management of some Chinese banks visited Saudi Arabia multiple times this year before Aramco officially requested proposals, one of the the people said.
A number of Asia-based dealmakers have been cutting short their vacations to finish work on the pitches, according to the people. Aramco has asked most banks to submit proposals by next week, the people said. It invited more than 20 advisory firms from the U.S., Europe and Asia to compete for a role on the offering, including some of the world’s biggest underwriters as well as a number of smaller banks, one person said.
Oil prices slide over 2% as U.S.-China trade war escalates - Reuters
Oil prices slide over 2% as U.S.-China trade war escalates - Reuters:
Oil prices fell more than 2% on Friday after China unveiled retaliatory tariffs against about $75 billion worth of U.S. goods, marking another escalation of a protracted trade dispute between the world’s two largest economies.
Brent crude futures fell $1.25, or 2.1% to $58.67 a barrel by 1:15 p.m. (1715 GMT). U.S. West Texas Intermediate (WTI) crude futures fell $1.85, or 3.3%, to $53.50 a barrel.
WTI was on track to fall 2.7% for the week, while Brent was set to remain nearly unchanged.
China’s commerce ministry said it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products such as soybeans, and small aircraft.
Oil prices fell more than 2% on Friday after China unveiled retaliatory tariffs against about $75 billion worth of U.S. goods, marking another escalation of a protracted trade dispute between the world’s two largest economies.
Brent crude futures fell $1.25, or 2.1% to $58.67 a barrel by 1:15 p.m. (1715 GMT). U.S. West Texas Intermediate (WTI) crude futures fell $1.85, or 3.3%, to $53.50 a barrel.
WTI was on track to fall 2.7% for the week, while Brent was set to remain nearly unchanged.
China’s commerce ministry said it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products such as soybeans, and small aircraft.
U.S. Oil Rig Count Plunges To Near 2-Year Low | OilPrice.com
U.S. Oil Rig Count Plunges To Near 2-Year Low | OilPrice.com:
The US oil and gas rig count fell sharply on Friday, decreasing by 19 for the week, according to Baker Hughes. The total oil and gas rig count now stands at 916, or 128 down from this time last year. US production, however, is holding fast at 12.3 million bpd.
The total number of active oil rigs in the United States decreased by 16 according to the report, reaching 754. The number of active gas rigs decreased by 3 to reach 162.
Oil rigs have seen a loss of 106 rigs year on year, with gas rigs down 20 since this time last year. The combined oil and gas rig count is down solidly in triple-digit territory, at 128 year on year.
The US oil and gas rig count fell sharply on Friday, decreasing by 19 for the week, according to Baker Hughes. The total oil and gas rig count now stands at 916, or 128 down from this time last year. US production, however, is holding fast at 12.3 million bpd.
The total number of active oil rigs in the United States decreased by 16 according to the report, reaching 754. The number of active gas rigs decreased by 3 to reach 162.
Oil rigs have seen a loss of 106 rigs year on year, with gas rigs down 20 since this time last year. The combined oil and gas rig count is down solidly in triple-digit territory, at 128 year on year.
Oil slides as China hits US with new tariffs | Financial Times
Oil slides as China hits US with new tariffs | Financial Times:
Brent crude tumbled below $59 as China announced new tariffs on US imports on Friday, the latest move in the escalation of a trade war that is knocking the outlook for global economic growth and oil demand.
The price of Brent crude, the international benchmark, was down 1.5 per cent at $59.00 a barrel, falling as low as $58.30. West Texas Intermediate, the US marker, was trading at just under $54 a barrel, 2.5 per cent lower than Thursday’s close, having fallen as low as $53.40 earlier in the day.
Beijing said that it would impose additional levies of between 5 and 10 per cent on $75bn of US imports from September, the latest retaliatory measure in the tit-for-tat trade war to darken the macroeconomic outlook and hit prospects for oil consumption growth.
Brent crude tumbled below $59 as China announced new tariffs on US imports on Friday, the latest move in the escalation of a trade war that is knocking the outlook for global economic growth and oil demand.
The price of Brent crude, the international benchmark, was down 1.5 per cent at $59.00 a barrel, falling as low as $58.30. West Texas Intermediate, the US marker, was trading at just under $54 a barrel, 2.5 per cent lower than Thursday’s close, having fallen as low as $53.40 earlier in the day.
Beijing said that it would impose additional levies of between 5 and 10 per cent on $75bn of US imports from September, the latest retaliatory measure in the tit-for-tat trade war to darken the macroeconomic outlook and hit prospects for oil consumption growth.
#UAE central bank’s foreign assets up 11% in July | ZAWYA MENA Edition
UAE central bank’s foreign assets up 11% in July | ZAWYA MENA Edition:
Total foreign assets of the Central Bank of the UAE (CBUAE) rose by 11.1% year-on-year or AED 37 billion in at the end of July, a survey conducted by Mubasher showed.
The bank’s foreign assets valued at AED 369.3 billion ($100.5 billion) at the end of July, as compared to AED 332.31 billion ($90.5 billion) in the corresponding period of 2018, the survey highlighted.
Month-on-month, the value of foreign assets fell by 2.1% or AED 7.94 billion, versus AED 377.24 billion ($103 billion) at the end of June.
Total foreign assets of the Central Bank of the UAE (CBUAE) rose by 11.1% year-on-year or AED 37 billion in at the end of July, a survey conducted by Mubasher showed.
The bank’s foreign assets valued at AED 369.3 billion ($100.5 billion) at the end of July, as compared to AED 332.31 billion ($90.5 billion) in the corresponding period of 2018, the survey highlighted.
Month-on-month, the value of foreign assets fell by 2.1% or AED 7.94 billion, versus AED 377.24 billion ($103 billion) at the end of June.
Oil prices steadies as markets await Fed steer - Reuters
Oil prices steadies as markets await Fed steer - Reuters:
Oil prices steadied on Friday, on track for a weekly gain, with attention focused on a speech by U.S. Federal Reserve chief Jerome Powell for news on whether it will cut interest rates for a second time this year to boost the world’s largest economy.
Brent crude futures LCOc1, the international benchmark for oil prices, fell 4 cents to $59.88 a barrel by 0813 GMT but was up about 2.1% on the week.
U.S. West Texas Intermediate (WTI) crude futures CLc1 slipped by 5 cents to $55.30, up 0.8% this week.
“For now, it all comes down to Powell’s projected bias on Friday. Does he insist on the robustness of the U.S. economy or does he highlight the growing downside risks? Investors’ interpretation of Powell’s policy bias is set to sway markets,” said FXTM market analyst Han Tan.
Oil prices steadied on Friday, on track for a weekly gain, with attention focused on a speech by U.S. Federal Reserve chief Jerome Powell for news on whether it will cut interest rates for a second time this year to boost the world’s largest economy.
Brent crude futures LCOc1, the international benchmark for oil prices, fell 4 cents to $59.88 a barrel by 0813 GMT but was up about 2.1% on the week.
U.S. West Texas Intermediate (WTI) crude futures CLc1 slipped by 5 cents to $55.30, up 0.8% this week.
“For now, it all comes down to Powell’s projected bias on Friday. Does he insist on the robustness of the U.S. economy or does he highlight the growing downside risks? Investors’ interpretation of Powell’s policy bias is set to sway markets,” said FXTM market analyst Han Tan.
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