Oil falls below $65/bbl in first weekly drop since November - Reuters:
Oil fell below $65 a barrel on Friday in its first weekly loss since late November, erasing the week’s risk premium added since a U.S. drone strike killed a top Iranian general as investors focused on rising U.S. inventories and other signs of ample supply.
However, markets were still eyeing the longer-term risks of conflict, and prices were briefly supported on Friday by new U.S. sanctions on Iran in retaliation for its missile attack on U.S. forces in Iraq this week.
Also, a Russian navy ship “aggressively approached” a U.S. Navy destroyer in the North Arabian Sea on Thursday, the U.S. Navy’s Bahrain-based Fifth Fleet said in a statement on Friday.
Brent crude LCOc1, the global benchmark, settled at $64.98, down 39 cents. West Texas Intermediate crude CLc1 fell 52 cents to end at $59.04.
“With the standing down of Iran there was a sense that oil supplies were pretty safe but now with the institution of sanctions and this report that a Russian ship was acting aggressively toward a U.S. ship, it’s put a little bit of fear back into the market place,” said Phil Flynn, oil analyst at Price Futures Group in Chicago.
For the week, Brent had a 5.3% loss and WTI had a 6.4% decline, with both benchmarks now below where levels were before the U.S. drone strike killed Iranian general Qassem Soleimani on Jan. 3.
Friday 10 January 2020
Oil Set for Biggest Weekly Loss Since July as Mideast Risk Fades - Bloomberg
Oil Set for Biggest Weekly Loss Since July as Mideast Risk Fades - Bloomberg:
Oil headed for its largest weekly loss since July as the prospect of an immediate confrontation between the U.S. and Iran abated, allaying fears of disruption to Middle East energy supplies.
Futures soared to an eight-month high to top $65 a barrel in New York on Jan. 8 as Washington and Tehran faced-off after the killing of a top Iranian general. But prices retreated as the two adversaries backed away from a full-scale conflict. Crude is now trading back below $60 and is headed for about a 6% loss for the week.
“Prices are still sliding because of the easing in tensions in the Middle East,” said Michael Loewen, director of commodity strategy at Scotiabank. “That’s draining the supply risk premium that was injected into the market starting with the killing of the Iranian general.” Data from the U.S. showed the supplies are plentiful, not only in crude but also in products, he added.
U.S. crude inventories increased by 1.16 million barrels last week despite expectations for a decline, and gasoline stockpiles hit a 10-month high, government data showed on Jan. 8. Combined, weekly crude and product inventories swelled nearly 15 million barrels.
Oil headed for its largest weekly loss since July as the prospect of an immediate confrontation between the U.S. and Iran abated, allaying fears of disruption to Middle East energy supplies.
Futures soared to an eight-month high to top $65 a barrel in New York on Jan. 8 as Washington and Tehran faced-off after the killing of a top Iranian general. But prices retreated as the two adversaries backed away from a full-scale conflict. Crude is now trading back below $60 and is headed for about a 6% loss for the week.
“Prices are still sliding because of the easing in tensions in the Middle East,” said Michael Loewen, director of commodity strategy at Scotiabank. “That’s draining the supply risk premium that was injected into the market starting with the killing of the Iranian general.” Data from the U.S. showed the supplies are plentiful, not only in crude but also in products, he added.
U.S. crude inventories increased by 1.16 million barrels last week despite expectations for a decline, and gasoline stockpiles hit a 10-month high, government data showed on Jan. 8. Combined, weekly crude and product inventories swelled nearly 15 million barrels.
#Iran Crisis Hands Turkey Stocks an Opening to Win Back Investors - Bloomberg
Iran Crisis Hands Turkey Stocks an Opening to Win Back Investors - Bloomberg:
Turkish stocks turned out to be this week’s surprise winners from the Middle East crisis. And there several reasons why Istanbul equities may make the most of their moment in the spotlight to hold on to foreign investors’ attention.
The Borsa Istanbul 100 Index surged 4.5% Thursday, its biggest jump since November 2015 and outperforming more than 90 other global equity benchmarks tracked by Bloomberg, reflecting relief as concerns over an escalation in tensions between the U.S. and Iran dissipated.
Investors may be taking a closer look at some other attractive factors too. A drop off in foreign interest has left the market with a high valuation discount relative to emerging market peers. In addition, Turkey’s status as an oil importer means a post-crisis drop in oil prices may become a positive catalyst. On top of that, some of the country’s largest non-state-owned banks have just announced upbeat guidance for 2020, spurring optimism among money managers this week.
The historically low levels of international ownership compounded Thursday’s rally, spurring sharp gains in the private banking sector, said Julian Rimmer, a trader at Investec Bank Plc in London. The Istanbul benchmark index trades at 6.5 times estimated earnings, compared with a multiple of 13.1 times for the MSCI Emerging Markets Index.
Turkish stocks turned out to be this week’s surprise winners from the Middle East crisis. And there several reasons why Istanbul equities may make the most of their moment in the spotlight to hold on to foreign investors’ attention.
The Borsa Istanbul 100 Index surged 4.5% Thursday, its biggest jump since November 2015 and outperforming more than 90 other global equity benchmarks tracked by Bloomberg, reflecting relief as concerns over an escalation in tensions between the U.S. and Iran dissipated.
Investors may be taking a closer look at some other attractive factors too. A drop off in foreign interest has left the market with a high valuation discount relative to emerging market peers. In addition, Turkey’s status as an oil importer means a post-crisis drop in oil prices may become a positive catalyst. On top of that, some of the country’s largest non-state-owned banks have just announced upbeat guidance for 2020, spurring optimism among money managers this week.
The historically low levels of international ownership compounded Thursday’s rally, spurring sharp gains in the private banking sector, said Julian Rimmer, a trader at Investec Bank Plc in London. The Istanbul benchmark index trades at 6.5 times estimated earnings, compared with a multiple of 13.1 times for the MSCI Emerging Markets Index.
Mohammed bin Zayed’s Dark Vision of the Middle East’s Future - The New York Times #UAE
Mohammed bin Zayed’s Dark Vision of the Middle East’s Future - The New York Times:
Richard Clarke was in Abu Dhabi one morning in 2013 when his phone lit up. “You busy?” a familiar voice said. It was a rhetorical question. The caller was Mohammed bin Zayed al-Nahyan, the ruler of the United Arab Emirates and one of the most powerful men on Earth. “I’ll send a car,” he said, and hung up. Clarke, the former White House counterterrorism czar, was working as a consultant for M.B.Z. (as he’s mostly known outside his country) and had gotten used to impromptu calls like this. M.B.Z. rarely explained what he had in mind. Once, he took Clarke for an unexpected helicopter flight deep into the desert of the Empty Quarter and then landed by an artificial pond, scattering a herd of wild gazelles. Not far away, a group of German engineers was standing around, working on an experimental solar-powered water-desalination plant.
This time, Clarke got in the back of the car with no idea where he was heading. As they drove through a remote warehouse district, the thought crossed his mind that he was being kidnapped. Then the driver pulled up outside a building where Clarke heard popping sounds. He went inside and saw a group of young women in military uniforms, firing pistols at targets. Seated not far away was M.B.Z., in his white tunic and ear-protection muffs, alongside his wife and an empty third chair reserved for Clarke. During a lull in the shooting, M.B.Z. introduced the women, who were all his daughters and nieces. “I’m starting a draft,” M.B.Z. said. “I want everyone in the country to feel like they’re responsible. A lot of them are fat and lazy.” To stimulate the draft, he said, he would begin with all the young people in his own family.
M.B.Z.’s draft was part of a grand nation-building effort at home and abroad, one that would require more soldiers and have repercussions for the entire Middle East. Since its founding in 1971, the United Arab Emirates — a federation of oil-rich sheikhdoms on the north Arabian coast — has mostly stayed out of the Arab world’s many conflicts. It became the region’s economic marvel, a desert Xanadu of gleaming skyscrapers, endless malls and marble-floored airports. But by 2013, M.B.Z. was deeply worried about the future. The Arab Spring uprisings had toppled several autocrats, and political Islamists were rising to fill the vacuum. The Muslim Brotherhood — the region’s foremost Islamic party, founded in 1928 — and its affiliates had won elections in Egypt and Tunisia, and jihadist militias were running rampant in Libya. In Syria, the rebellion against Bashar al-Assad was also falling into the hands of Islamist militias. ISIS was on the rise, and in less than a year would sweep across the Iraqi border and seize a territory the size of Britain.
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| Artwork by Alan Coulson |
Richard Clarke was in Abu Dhabi one morning in 2013 when his phone lit up. “You busy?” a familiar voice said. It was a rhetorical question. The caller was Mohammed bin Zayed al-Nahyan, the ruler of the United Arab Emirates and one of the most powerful men on Earth. “I’ll send a car,” he said, and hung up. Clarke, the former White House counterterrorism czar, was working as a consultant for M.B.Z. (as he’s mostly known outside his country) and had gotten used to impromptu calls like this. M.B.Z. rarely explained what he had in mind. Once, he took Clarke for an unexpected helicopter flight deep into the desert of the Empty Quarter and then landed by an artificial pond, scattering a herd of wild gazelles. Not far away, a group of German engineers was standing around, working on an experimental solar-powered water-desalination plant.
This time, Clarke got in the back of the car with no idea where he was heading. As they drove through a remote warehouse district, the thought crossed his mind that he was being kidnapped. Then the driver pulled up outside a building where Clarke heard popping sounds. He went inside and saw a group of young women in military uniforms, firing pistols at targets. Seated not far away was M.B.Z., in his white tunic and ear-protection muffs, alongside his wife and an empty third chair reserved for Clarke. During a lull in the shooting, M.B.Z. introduced the women, who were all his daughters and nieces. “I’m starting a draft,” M.B.Z. said. “I want everyone in the country to feel like they’re responsible. A lot of them are fat and lazy.” To stimulate the draft, he said, he would begin with all the young people in his own family.
M.B.Z.’s draft was part of a grand nation-building effort at home and abroad, one that would require more soldiers and have repercussions for the entire Middle East. Since its founding in 1971, the United Arab Emirates — a federation of oil-rich sheikhdoms on the north Arabian coast — has mostly stayed out of the Arab world’s many conflicts. It became the region’s economic marvel, a desert Xanadu of gleaming skyscrapers, endless malls and marble-floored airports. But by 2013, M.B.Z. was deeply worried about the future. The Arab Spring uprisings had toppled several autocrats, and political Islamists were rising to fill the vacuum. The Muslim Brotherhood — the region’s foremost Islamic party, founded in 1928 — and its affiliates had won elections in Egypt and Tunisia, and jihadist militias were running rampant in Libya. In Syria, the rebellion against Bashar al-Assad was also falling into the hands of Islamist militias. ISIS was on the rise, and in less than a year would sweep across the Iraqi border and seize a territory the size of Britain.
Oil slips towards $65 as Middle East tensions ease - Reuters
Oil slips towards $65 as Middle East tensions ease - Reuters:
Oil slipped further towards $65 a barrel on Friday as tensions in the Middle East over Iran eased for now and investors focused on rising U.S. inventories and other signs of ample supply.
Iran responded to a U.S. drone strike that killed a top Iranian general on Jan. 3 with a missile attack on Iraqi air bases hosting U.S. forces that left no casualties. But a Revolutionary Guards commander said Iran would take “harsher revenge” soon.
“Hostilities may have ended for the time being, but the longer-term risks of conflict have by no means vanished,” said Stephen Brennock of oil broker PVM.
“Set against this backdrop, the threat of supply disruptions in the Middle East is very much alive.”
Brent crude LCOc1, the global benchmark, was down 27 cents at $65.10 by 1415 GMT, and was heading for its first weekly decline in six weeks, down over 4%. U.S. West Texas Intermediate crude CLc1 slipped 33 cents to $59.23.
Oil slipped further towards $65 a barrel on Friday as tensions in the Middle East over Iran eased for now and investors focused on rising U.S. inventories and other signs of ample supply.
Iran responded to a U.S. drone strike that killed a top Iranian general on Jan. 3 with a missile attack on Iraqi air bases hosting U.S. forces that left no casualties. But a Revolutionary Guards commander said Iran would take “harsher revenge” soon.
“Hostilities may have ended for the time being, but the longer-term risks of conflict have by no means vanished,” said Stephen Brennock of oil broker PVM.
“Set against this backdrop, the threat of supply disruptions in the Middle East is very much alive.”
Brent crude LCOc1, the global benchmark, was down 27 cents at $65.10 by 1415 GMT, and was heading for its first weekly decline in six weeks, down over 4%. U.S. West Texas Intermediate crude CLc1 slipped 33 cents to $59.23.
Oil slips towards $65 as Middle East war concerns ease - Reuters
Oil slips towards $65 as Middle East war concerns ease - Reuters:
Oil slipped towards $65 a barrel on Friday as the threat of war in the Middle East receded and investors focused on rising U.S. inventories and other signs of ample supply.
Crude is now below where it was before a U.S. drone strike killed Iranian general Qassem Soleimani on Jan. 3. Iran responded with a missile attack on Iraqi air bases hosting U.S. forces this week that left no casualties.
“Immediate escalation has been avoided,” said Olivier Jakob, oil analyst at Petromatrix. “There has been some de-escalation, but the return of risk is still there.”
Brent crude LCOc1, the global benchmark, was down 20 cents at $65.17 by 0928 GMT, and was heading for its first weekly decline in six weeks, down about 5%. U.S. West Texas Intermediate crude CLc1 was 25 cents lower at $59.31.
Oil slipped towards $65 a barrel on Friday as the threat of war in the Middle East receded and investors focused on rising U.S. inventories and other signs of ample supply.
Crude is now below where it was before a U.S. drone strike killed Iranian general Qassem Soleimani on Jan. 3. Iran responded with a missile attack on Iraqi air bases hosting U.S. forces this week that left no casualties.
“Immediate escalation has been avoided,” said Olivier Jakob, oil analyst at Petromatrix. “There has been some de-escalation, but the return of risk is still there.”
Brent crude LCOc1, the global benchmark, was down 20 cents at $65.17 by 0928 GMT, and was heading for its first weekly decline in six weeks, down about 5%. U.S. West Texas Intermediate crude CLc1 was 25 cents lower at $59.31.