Oil falls after surging past $65 on Texas freeze | Reuters
Oil prices fell on Thursday despite a sharp drop in U.S. crude inventories, as market participants took profits following days of buying spurred by a cold snap in the largest U.S. energy-producing state.
Brent crude fell 41 cents, or 0.6%, to settle at $63.93 a barrel. During the session it rose as high as $65.52, its highest since January 2020.
U.S. West Texas Intermediate (WTI) crude futures fell 62 cents, or 1%, to settle at $60.52 a barrel, after earlier reaching $62.26, the highest since January 2020.
Brent had gained for four straight sessions before Thursday, while WTI had risen for three.
“The market probably got a little bit ahead of itself,” said Phil Flynn, a senior analyst at Price Futures Group in Chicago. “But make no mistake, this selloff in oil doesn’t solve the problems. The problems are going to persist.”
Thursday 18 February 2021
Brent gives up gains after rising above $65 on Texas freeze | Reuters
Brent gives up gains after rising above $65 on Texas freeze | Reuters
Oil prices erased early gains on Thursday, with Brent retreating from a 13-month high above $65 a barrel as buying spurred by concerns that a rare cold snap in Texas could disrupt U.S. crude output for days or even weeks petered out.
Brent crude was down 18 cents, or 0.3%, at $64.16 a barrel at 1516 GMT, after rising to $65.52 earlier in the session, its highest since Jan. 20, 2020.
U.S. West Texas Intermediate (WTI) crude futures fell 23 cents, or 0.4%, to $60.91 a barrel, after earlier rising to $62.26, the highest since Jan. 8, 2020.
“Even though oil price gains now have been scaled back to just around yesterday’s close, prices reached new highs this morning supported by production cuts in the U.S.,” Rystad Energy head of shale research Artem Abramov said.
Texas’ freeze entered a sixth day on Thursday, as the largest energy-producing state in the United States grappled with refining outages and oil and gas shut-ins that rippled beyond its borders into neighbouring Mexico.
Oil prices erased early gains on Thursday, with Brent retreating from a 13-month high above $65 a barrel as buying spurred by concerns that a rare cold snap in Texas could disrupt U.S. crude output for days or even weeks petered out.
Brent crude was down 18 cents, or 0.3%, at $64.16 a barrel at 1516 GMT, after rising to $65.52 earlier in the session, its highest since Jan. 20, 2020.
U.S. West Texas Intermediate (WTI) crude futures fell 23 cents, or 0.4%, to $60.91 a barrel, after earlier rising to $62.26, the highest since Jan. 8, 2020.
“Even though oil price gains now have been scaled back to just around yesterday’s close, prices reached new highs this morning supported by production cuts in the U.S.,” Rystad Energy head of shale research Artem Abramov said.
Texas’ freeze entered a sixth day on Thursday, as the largest energy-producing state in the United States grappled with refining outages and oil and gas shut-ins that rippled beyond its borders into neighbouring Mexico.
‘Reality bites’ as Biden tries to loosen ties with #SaudiArabia | Financial Times
‘Reality bites’ as Biden tries to loosen ties with Saudi Arabia | Financial Times
During the election campaign, Joe Biden pledged to make Saudi Arabia “the pariah that they are”, underscoring his intention to unpick one of Donald Trump’s most transactional foreign policy relationships.
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The White House told reporters on Tuesday that Joe Biden would deal directly with King Salman rather than his son, Crown Prince Mohammed bin Salman (above) © Reuter |
During the election campaign, Joe Biden pledged to make Saudi Arabia “the pariah that they are”, underscoring his intention to unpick one of Donald Trump’s most transactional foreign policy relationships.
Since taking office, Biden has frozen the sale of some arms to Saudi Arabia and ended support for the kingdom’s six-year war in Yemen, but an aerial attack by Yemen’s Iran-aligned Houthi rebels on a civilian plane in Saudi Arabia last week — an escalation of the conflict — made clear how complicated the relationship is.
Antony Blinken, Biden’s secretary of state, warned the US would “not stand by” while the Houthis launched such attacks and was committed to “bolster” Saudi Arabia’s defences against the incursions.
Analysts say balancing reproach for Riyadh’s poor human rights record under Crown Prince Mohammed bin Salman’s leadership against the kingdom’s traditional role as an important security and intelligence ally in the Middle East will be a difficult task to pull off.
Big Freeze in Texas Is Becoming a Global Oil Market Crisis - Bloomberg
Big Freeze in Texas Is Becoming a Global Oil Market Crisis - Bloomberg
What began as a power issue for a handful of U.S. states is rippling into a shock for the world’s oil market.
More than 4 million barrels a day of output -- almost 40% of the nation’s crude production -- is now offline, according to traders and executives. One of the world’s biggest oil refining centers has seen output drastically cut back. The waterways that help U.S. oil flow to the rest of the world have been disrupted for much of the week.
“The market is underestimating the amount of oil production lost in Texas due to the bad weather,” said Ben Luckock, co-head of oil trading at commodity giant Trafigura Group.
Brent crude briefly surged above $65 a barrel on Thursday, a level not seen since last January. Spreads indicating supply tightness also soared. Ten months ago, the price slumped below $16 because of a demand shock caused by Covid-19.
What began as a power issue for a handful of U.S. states is rippling into a shock for the world’s oil market.
More than 4 million barrels a day of output -- almost 40% of the nation’s crude production -- is now offline, according to traders and executives. One of the world’s biggest oil refining centers has seen output drastically cut back. The waterways that help U.S. oil flow to the rest of the world have been disrupted for much of the week.
“The market is underestimating the amount of oil production lost in Texas due to the bad weather,” said Ben Luckock, co-head of oil trading at commodity giant Trafigura Group.
Brent crude briefly surged above $65 a barrel on Thursday, a level not seen since last January. Spreads indicating supply tightness also soared. Ten months ago, the price slumped below $16 because of a demand shock caused by Covid-19.
Most Gulf markets fall; #AbuDhabi gains | Reuters
Most Gulf markets fall; Abu Dhabi gains | Reuters
Most Gulf markets ended in the red on Thursday, with the Saudi index pressured by losses in its banking shares.
Saudi Arabia’s benchmark index ended the session down 0.7%, but was still up 0.9% on the week.
Al Rajhi Bank dropped 0.7%, while the kingdom’s largest lender National Commercial Bank retreated 1.9%.
Crude oil exports in Saudi Arabia, the world’s largest oil exporter, rose for a sixth straight month to an eight-month peak in December 2020, official data showed on Wednesday.
In Dubai, the main share index dropped 0.7%, hit by a 2.1% fall in its largest lender Emirates NBD.
The index is down 2.2% for the week, its biggest weekly loss since Oct. 8.
Separately, the United Arab Emirates civil aviation authority has authorised Boeing 737 MAX planes to resume flying, nearly two years after being grounded in March 2019, state news agency WAM said on Wednesday. Emirati carrier flydubai is a major buyer of the jet.
In Abu Dhabi, the index finished 0.2% higher, supported by a 0.8% gain in Aldar Properties and a 0.7% rise in aquaculture firm International Holding.
The index, however, logged its first weekly loss for the year.
The Qatari index declined 0.67%, and retreated the most in a week since Oct. 29.
Financials weighed on sentiment, with Qatar Islamic Bank and Qatar National Bank dragging on the index.
Most Gulf markets ended in the red on Thursday, with the Saudi index pressured by losses in its banking shares.
Saudi Arabia’s benchmark index ended the session down 0.7%, but was still up 0.9% on the week.
Al Rajhi Bank dropped 0.7%, while the kingdom’s largest lender National Commercial Bank retreated 1.9%.
Crude oil exports in Saudi Arabia, the world’s largest oil exporter, rose for a sixth straight month to an eight-month peak in December 2020, official data showed on Wednesday.
In Dubai, the main share index dropped 0.7%, hit by a 2.1% fall in its largest lender Emirates NBD.
The index is down 2.2% for the week, its biggest weekly loss since Oct. 8.
Separately, the United Arab Emirates civil aviation authority has authorised Boeing 737 MAX planes to resume flying, nearly two years after being grounded in March 2019, state news agency WAM said on Wednesday. Emirati carrier flydubai is a major buyer of the jet.
In Abu Dhabi, the index finished 0.2% higher, supported by a 0.8% gain in Aldar Properties and a 0.7% rise in aquaculture firm International Holding.
The index, however, logged its first weekly loss for the year.
The Qatari index declined 0.67%, and retreated the most in a week since Oct. 29.
Financials weighed on sentiment, with Qatar Islamic Bank and Qatar National Bank dragging on the index.
National Bank of #Kuwait gives initial outlook for Tier-1 bonds - document | Reuters
National Bank of Kuwait gives initial outlook for Tier-1 bonds - document | Reuters
The National Bank of Kuwait has given initial price guidance of about 4% for U.S. dollar-denominated Additional Tier-1 bonds, a document showed.
Citi, HSBC, JPMorgan, NBK Capital, Standard Chartered and UBS are arranging the deal, which is expected to be launched later on Thursday. The perpetual bonds will be non-callable for six years.
The National Bank of Kuwait has given initial price guidance of about 4% for U.S. dollar-denominated Additional Tier-1 bonds, a document showed.
Citi, HSBC, JPMorgan, NBK Capital, Standard Chartered and UBS are arranging the deal, which is expected to be launched later on Thursday. The perpetual bonds will be non-callable for six years.
MIDEAST STOCKS-Gulf markets little changed in early trade | Nasdaq
MIDEAST STOCKS-Gulf markets little changed in early trade | Nasdaq
Major Gulf stock markets were little changed early on Thursday, with the Dubai index slipping slightly on declines among Industrial and financial stocks.
Saudi Arabia's benchmark index .TASI rose 0.1%, with Saudi Arabian Mining Company 1211.SE gaining 2.6% and petrochemical firm Saudi Basic Industries 2010.SE increasing 0.6%.
Saudi Arabia's crude oil exports rose for a sixth straight month to an eight-month peak in December 2020, official data showed on Wednesday.
The world's largest oil exporter's total crude and oil products exports rose month-on-month to 7.71 million barrels per day, the Joint Organisations Data Initiative said on its website.
The Saudi index's gains, however, were capped by losses at financial shares including Al Rajhi Bank 1120.SE, which was down 0.5%.
In Dubai, the main share index .DFMGI eased 0.2%, hit by a 2.6% fall in the diversified Gulf-based investment group Dubai Investments DINV.DU.
Separately, the United Arab Emirates civil aviation authority has authorised Boeing 737 MAX BA.N planes to resume flying, state news agency WAM said on Wednesday.
The plane was grounded globally in March 2019 after two fatal crashes in five months killed 346 people. Emirati carrier flydubai is a major buyer of the jet.
Elsewhere, Dubai's largest lender Emirates NBD ENBD.DU retreated 1.3%.
The Abu Dhabi index .ADI edged up 0.1%, helped by 0.4% gain in telecoms giant Etisalat ETISALAT.AD.
In Qatar, the index .QSI added 0.2%, with Commercial Bank COMB.QA advancing 2.3%.
Major Gulf stock markets were little changed early on Thursday, with the Dubai index slipping slightly on declines among Industrial and financial stocks.
Saudi Arabia's benchmark index .TASI rose 0.1%, with Saudi Arabian Mining Company 1211.SE gaining 2.6% and petrochemical firm Saudi Basic Industries 2010.SE increasing 0.6%.
Saudi Arabia's crude oil exports rose for a sixth straight month to an eight-month peak in December 2020, official data showed on Wednesday.
The world's largest oil exporter's total crude and oil products exports rose month-on-month to 7.71 million barrels per day, the Joint Organisations Data Initiative said on its website.
The Saudi index's gains, however, were capped by losses at financial shares including Al Rajhi Bank 1120.SE, which was down 0.5%.
In Dubai, the main share index .DFMGI eased 0.2%, hit by a 2.6% fall in the diversified Gulf-based investment group Dubai Investments DINV.DU.
Separately, the United Arab Emirates civil aviation authority has authorised Boeing 737 MAX BA.N planes to resume flying, state news agency WAM said on Wednesday.
The plane was grounded globally in March 2019 after two fatal crashes in five months killed 346 people. Emirati carrier flydubai is a major buyer of the jet.
Elsewhere, Dubai's largest lender Emirates NBD ENBD.DU retreated 1.3%.
The Abu Dhabi index .ADI edged up 0.1%, helped by 0.4% gain in telecoms giant Etisalat ETISALAT.AD.
In Qatar, the index .QSI added 0.2%, with Commercial Bank COMB.QA advancing 2.3%.
Move In or Lose Out: #SaudiArabia’s Ultimatum Unsettles Firms - Bloomberg
Move In or Lose Out: Saudi Arabia’s Ultimatum Unsettles Firms - Bloomberg
Saudi Arabia’s ultimatum for global companies to move their regional hubs to Riyadh by 2024 or lose business is the kind of decision making that has made some wary of investing there.
The millions of dollars in costs, sudden policy changes and arbitrary legal rulings mean companies will need to weigh the risks of moving there with the potential rewards Crown Prince Mohammed bin Salman’s economic overhaul promises.
Saudi Arabia said this week state contracts would go only to companies with regional hubs in the country to stop economic “leakage.” It gave few details, fueling the kind of uncertainty many regional executives say complicate their dealings with the world’s top oil exporter.
Some businessmen say Saudi Arabia is a sleeping giant that’s waking up, with a consumer market three times the size of the United Arab Emirates, planned mega-projects worth hundreds of billions of dollars and a young, rapidly-changing society that’s almost unrecognizable from the ultra-conservative kingdom of five years ago.
But one manager at a multinational headquartered in Dubai, the Gulf’s main business hub, said companies know the political tide can turn fast in Saudi Arabia. The lack of legal recourse they have makes them vulnerable as most contracts come via the state so it’s difficult to chase unpaid money, he said. Like others he spoke on condition of anonymity because of the sensitivity.
Saudi Arabia’s ultimatum for global companies to move their regional hubs to Riyadh by 2024 or lose business is the kind of decision making that has made some wary of investing there.
The millions of dollars in costs, sudden policy changes and arbitrary legal rulings mean companies will need to weigh the risks of moving there with the potential rewards Crown Prince Mohammed bin Salman’s economic overhaul promises.
Saudi Arabia said this week state contracts would go only to companies with regional hubs in the country to stop economic “leakage.” It gave few details, fueling the kind of uncertainty many regional executives say complicate their dealings with the world’s top oil exporter.
Some businessmen say Saudi Arabia is a sleeping giant that’s waking up, with a consumer market three times the size of the United Arab Emirates, planned mega-projects worth hundreds of billions of dollars and a young, rapidly-changing society that’s almost unrecognizable from the ultra-conservative kingdom of five years ago.
But one manager at a multinational headquartered in Dubai, the Gulf’s main business hub, said companies know the political tide can turn fast in Saudi Arabia. The lack of legal recourse they have makes them vulnerable as most contracts come via the state so it’s difficult to chase unpaid money, he said. Like others he spoke on condition of anonymity because of the sensitivity.
Oil prices climb on fears Texas freeze may hamper U.S. crude output | Reuters
Oil prices climb on fears Texas freeze may hamper U.S. crude output | Reuters
Oil prices rallied again on Thursday to hit 13-month highs as concerns that a rare cold snap in Texas could disrupt U.S. crude output for days or even weeks prompted fresh buying.
Brent crude climbed 89 cents, or 1.4%, to $65.23 a barrel by 0524 GMT, touching its highest since Jan. 20, 2020. U.S. West Texas Intermediate (WTI) crude futures gained 66 cents, or 1.1%, to $61.80 a barrel, registering its highest since Jan. 8, 2020.
Both benchmarks rose about $1 on Wednesday and have gained more than 6% since their close last Thursday.
Texas oil producers and refiners remained shut for a fifth day on Wednesday after several days of blistering cold, and the governor ordered a ban on natural gas exports from the state to try to speed the restoration of power.
Roughly 1 million barrels per day (bpd) of crude production has been shut, according to Wood Mackenzie analysts, and it could be weeks before it is fully restored.
Oil prices rallied again on Thursday to hit 13-month highs as concerns that a rare cold snap in Texas could disrupt U.S. crude output for days or even weeks prompted fresh buying.
Brent crude climbed 89 cents, or 1.4%, to $65.23 a barrel by 0524 GMT, touching its highest since Jan. 20, 2020. U.S. West Texas Intermediate (WTI) crude futures gained 66 cents, or 1.1%, to $61.80 a barrel, registering its highest since Jan. 8, 2020.
Both benchmarks rose about $1 on Wednesday and have gained more than 6% since their close last Thursday.
Texas oil producers and refiners remained shut for a fifth day on Wednesday after several days of blistering cold, and the governor ordered a ban on natural gas exports from the state to try to speed the restoration of power.
Roughly 1 million barrels per day (bpd) of crude production has been shut, according to Wood Mackenzie analysts, and it could be weeks before it is fully restored.