Oil falls ahead of hurricane but posts weekly gain as U.S.-China trade war eases - Reuters:
Oil futures fell on Friday, with U.S. crude down nearly 3% ahead of a hurricane near the Florida coast that could dampen demand, but prices were still headed for the biggest weekly increase since early July, boosted by an easing of U.S.-China trade rhetoric.
Brent crude LCOc1 futures fell 65 cents, or 1.1%, to settle at $60.43 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled down $1.61, or 2.8%, at $55.10 a barrel.
Hurricane Dorian gained strength as it crept closer to Florida’s coast on Friday, raising the risk that parts of the U.S. state will be hit by strong winds, a storm surge and heavy rain for a prolonged period after it makes landfall early next week.
Friday, 30 August 2019
Oil Narrows Weekly Advance as Trade, Economic Concerns Linger - Bloomberg
Oil Narrows Weekly Advance as Trade, Economic Concerns Linger - Bloomberg:
Oil gave back much of the week’s gains ahead of a long weekend in the U.S., with investors eyeing simmering U.S.-China trade tensions.
Futures in New York fell below $55 a barrel Friday, extending the month’s drop to more than 6%. China is set to impose a 5% tariff on American crude from Sept. 1 that may slow the flow to a key market just as U.S. output hits fresh records. Also, Russia indicated that it reduced crude output in August less than promised in the agreement with OPEC and its allies.
“It’s simply positioning ahead of the long weekend,” said Bob Yawger, futures director at Mizuho Securities USA in New York. “It’s been the best week in the past seven. If you were long, would you want to go home this weekend still long, really no idea what kind of twitter feed the POTUS is going to unload while you hanging out at the beach bar?”
Oil gave back much of the week’s gains ahead of a long weekend in the U.S., with investors eyeing simmering U.S.-China trade tensions.
Futures in New York fell below $55 a barrel Friday, extending the month’s drop to more than 6%. China is set to impose a 5% tariff on American crude from Sept. 1 that may slow the flow to a key market just as U.S. output hits fresh records. Also, Russia indicated that it reduced crude output in August less than promised in the agreement with OPEC and its allies.
“It’s simply positioning ahead of the long weekend,” said Bob Yawger, futures director at Mizuho Securities USA in New York. “It’s been the best week in the past seven. If you were long, would you want to go home this weekend still long, really no idea what kind of twitter feed the POTUS is going to unload while you hanging out at the beach bar?”
#Lebanon Holds Firm on Peg With $1.4 Billion Boost to Reserves - Bloomberg
Lebanon Holds Firm on Peg With $1.4 Billion Boost to Reserves - Bloomberg:
Lebanon’s central bank has secured up to $1.4 billion in five-year deposits from private investors overseas, boosting dollar reserves in one of the world’s most-indebted countries and easing concerns that it could struggle to repay its debts and defend its currency.
Governor Riad Salameh said in an interview with Bloomberg TV in Beirut that Banque du Liban remains committed to preserving the Lebanese pound’s peg of about 1,507.5 to the dollar, in place for more than two decades, and has “ample” cash to do so.
“Contrary to what is being said, the supply of dollars is ample in the market,” he said on Friday. “Today, the central bank has closed deals of deposits with private, non-resident institutions, whereby in the second half of August our reserves went up by $1.4 billion to reach $38.6 billion. This is private non-resident money and not government money.”
Lebanon’s central bank has secured up to $1.4 billion in five-year deposits from private investors overseas, boosting dollar reserves in one of the world’s most-indebted countries and easing concerns that it could struggle to repay its debts and defend its currency.
Governor Riad Salameh said in an interview with Bloomberg TV in Beirut that Banque du Liban remains committed to preserving the Lebanese pound’s peg of about 1,507.5 to the dollar, in place for more than two decades, and has “ample” cash to do so.
“Contrary to what is being said, the supply of dollars is ample in the market,” he said on Friday. “Today, the central bank has closed deals of deposits with private, non-resident institutions, whereby in the second half of August our reserves went up by $1.4 billion to reach $38.6 billion. This is private non-resident money and not government money.”
Analysts slash oil price forecasts due to fears over economy, trade: Reuters poll - Reuters
Analysts slash oil price forecasts due to fears over economy, trade: Reuters poll - Reuters:
Analysts have slashed their oil price forecasts to the lowest in more than 16 months, citing softening global demand as an economic slowdown looms and uncertainty prevails on the U.S.-China trade front, a Reuters poll showed on Friday.
The survey of 51 economists and analysts forecast Brent crude LCOc1 would average $65.02 a barrel in 2019, down about 4% from the previous month’s $67.47 projection and compared with the $65.08 average for the global benchmark so far this year.
It is also the lowest 2019 average forecast for Brent since March 2018.
The 2019 outlook for West Texas Intermediate crude futures CLc1 was cut to the lowest since January 2018, at $57.90 per barrel, below last month’s $59.29 forecast. WTI has averaged $57.13 this year.
Analysts have slashed their oil price forecasts to the lowest in more than 16 months, citing softening global demand as an economic slowdown looms and uncertainty prevails on the U.S.-China trade front, a Reuters poll showed on Friday.
The survey of 51 economists and analysts forecast Brent crude LCOc1 would average $65.02 a barrel in 2019, down about 4% from the previous month’s $67.47 projection and compared with the $65.08 average for the global benchmark so far this year.
It is also the lowest 2019 average forecast for Brent since March 2018.
The 2019 outlook for West Texas Intermediate crude futures CLc1 was cut to the lowest since January 2018, at $57.90 per barrel, below last month’s $59.29 forecast. WTI has averaged $57.13 this year.
Russian firm battles Mideast for Chinese petroleum gas market - Reuters
Russian firm battles Mideast for Chinese petroleum gas market - Reuters:
An independent Russian producer has made a foray into China’s market for liquefied petroleum gas (LPG), jostling with Middle Eastern countries for what could be a lucrative foothold, market data showed and traders said.
China is one of the world’s largest importers and consumers of the fuel. Key suppliers to the country are the United Arab Emirates, Qatar, Kuwait and Saudi Arabia, which jointly account for more than 60% of China’s LPG imports.
Russia is one of the top oil exporters to China and is set to launch a gas export pipeline connecting the two countries by the end of this year. Its LPG supplies to China are small at this stage but Moscow is expanding production.
An independent Russian producer has made a foray into China’s market for liquefied petroleum gas (LPG), jostling with Middle Eastern countries for what could be a lucrative foothold, market data showed and traders said.
China is one of the world’s largest importers and consumers of the fuel. Key suppliers to the country are the United Arab Emirates, Qatar, Kuwait and Saudi Arabia, which jointly account for more than 60% of China’s LPG imports.
Russia is one of the top oil exporters to China and is set to launch a gas export pipeline connecting the two countries by the end of this year. Its LPG supplies to China are small at this stage but Moscow is expanding production.
Exclusive: #Saudi Aramco board sees too many risks for New York IPO - sources - Reuters
Exclusive: Saudi Aramco board sees too many risks for New York IPO - sources - Reuters:
The board of Saudi Aramco has determined that listing the state energy giant in New York would carry too many legal risks to make it a realistic option, five sources said, although they said a final decision lay with Saudi Arabia’s crown prince.
New York was the exchange favored by Crown Prince Mohammed bin Salman before plans for the initial public offering were put on hold last year, the sources said, even after Aramco’s lawyers and some government advisers had raised legal concerns.
New York offers the largest investor base in the world, vital for an IPO that aims to attract as much as $100 billion, a sum that could prove tough for other exchanges to raise. U.S. President Donald Trump urged the kingdom to list in New York.
The board of Saudi Aramco has determined that listing the state energy giant in New York would carry too many legal risks to make it a realistic option, five sources said, although they said a final decision lay with Saudi Arabia’s crown prince.
New York was the exchange favored by Crown Prince Mohammed bin Salman before plans for the initial public offering were put on hold last year, the sources said, even after Aramco’s lawyers and some government advisers had raised legal concerns.
New York offers the largest investor base in the world, vital for an IPO that aims to attract as much as $100 billion, a sum that could prove tough for other exchanges to raise. U.S. President Donald Trump urged the kingdom to list in New York.
Oil Heads for Biggest Weekly Gain in Seven on Trade War Optimism - Bloomberg
Oil Heads for Biggest Weekly Gain in Seven on Trade War Optimism - Bloomberg:
Oil headed for its biggest weekly increase since mid-July after a sizable drop in American crude inventories and an apparent pause in U.S.-China trade hostilities eased demand fears.
Futures in New York fell 0.9% on Friday but are up 3.7% for the week. China said Thursday that it wouldn’t immediately retaliate against the latest White House tariff increase, spurring optimism that Beijing wants to reach a deal. Traders were watching for any disruptions from Hurricane Dorian, which was forecast to become a major storm later on Friday as it heads toward Florida.
Oil headed for its biggest weekly increase since mid-July after a sizable drop in American crude inventories and an apparent pause in U.S.-China trade hostilities eased demand fears.
Futures in New York fell 0.9% on Friday but are up 3.7% for the week. China said Thursday that it wouldn’t immediately retaliate against the latest White House tariff increase, spurring optimism that Beijing wants to reach a deal. Traders were watching for any disruptions from Hurricane Dorian, which was forecast to become a major storm later on Friday as it heads toward Florida.
Breakingviews - China’s oil and gas titans heed the call to spend - Reuters
Breakingviews - China’s oil and gas titans heed the call to spend - Reuters:
China’s oil and gas titans are heeding the call to spend. President Xi Jinping called for a boost to energy security, and first-half figures suggest state giants listened: $81 billion Sinopec, for one, nearly doubled capital expenditure. That contrasts with caution seen abroad. U.S. sanctions only add urgency to national service.
Energy is a perennial concern among the country’s security hawks, and last year Xi put it firmly back on the agenda. Then, the state-owned majors pledged to explore more actively for new resources at home. They forecast spending this year would reach 517 billion yuan ($72 billion), nearly a fifth higher than in 2018.
Numbers for the first six months of 2019 suggest they are on track. Sinopec reported on Sunday that capex in the first half surged to 43 billion yuan, compared to just 24 billion yuan in the same period last year, while national offshore producer CNOOC reported that its own figure rose 60% year-on-year.
China’s oil and gas titans are heeding the call to spend. President Xi Jinping called for a boost to energy security, and first-half figures suggest state giants listened: $81 billion Sinopec, for one, nearly doubled capital expenditure. That contrasts with caution seen abroad. U.S. sanctions only add urgency to national service.
Energy is a perennial concern among the country’s security hawks, and last year Xi put it firmly back on the agenda. Then, the state-owned majors pledged to explore more actively for new resources at home. They forecast spending this year would reach 517 billion yuan ($72 billion), nearly a fifth higher than in 2018.
Numbers for the first six months of 2019 suggest they are on track. Sinopec reported on Sunday that capex in the first half surged to 43 billion yuan, compared to just 24 billion yuan in the same period last year, while national offshore producer CNOOC reported that its own figure rose 60% year-on-year.
Oil prices fall but set for big weekly gain on trade dispute hopes - Reuters
Oil prices fall but set for big weekly gain on trade dispute hopes - Reuters:
Oil gave back some of its recent gains on Friday, but was still headed for the biggest weekly increase since early July, boosted by a decline in U.S stocks, a looming hurricane in Florida and an easing of Sino-U.S. trade rhetoric.
Brent crude LCOc1 was down by 23 cents, or 0.4%, at $60.85 a barrel, by 0711 GMT, but was heading for a gain of more than 2% for the week.
U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 40 cents, or 0.7%, to $56.31 a barrel. The contract is still set for a gain of nearly 4% this week.
“Oil prices remain elevated and we are in the middle of trading range here for both Brent and West Texas,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
Oil gave back some of its recent gains on Friday, but was still headed for the biggest weekly increase since early July, boosted by a decline in U.S stocks, a looming hurricane in Florida and an easing of Sino-U.S. trade rhetoric.
Brent crude LCOc1 was down by 23 cents, or 0.4%, at $60.85 a barrel, by 0711 GMT, but was heading for a gain of more than 2% for the week.
U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 40 cents, or 0.7%, to $56.31 a barrel. The contract is still set for a gain of nearly 4% this week.
“Oil prices remain elevated and we are in the middle of trading range here for both Brent and West Texas,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
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