Brent crude dips on global economy worries, US oil prices steady

Brent crude prices slipped on Monday amid concerns over demand in the wake of weaker growth in major economies, while U.S. oil markets held steady after U.S. drilling activity fell to its lowest level in about two months. International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.3 percent. But oil prices were supported after Genera


Brent crude prices slipped on Monday amid concerns over demand in the wake of weaker growth in major economies, while U.S. oil markets held steady after U.S. drilling activity fell to its lowest level in about two months. International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.3 percent. But oil prices were supported after Genera
Brent crude dips on global economy worries, US oil prices steady Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: getty images
Keywords: news, cnbc, companies, global, output, week, brent, crude, oil, meeting, futures, saudi, rigs, economy, steady, markets, worries, dips, prices


Brent crude dips on global economy worries, US oil prices steady

Brent crude prices slipped on Monday amid concerns over demand in the wake of weaker growth in major economies, while U.S. oil markets held steady after U.S. drilling activity fell to its lowest level in about two months.

International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.3 percent.

Chinese oil refinery throughput in November fell from October, suggesting an easing in oil demand, while the country’s industrial output rose the least in nearly three years as the economy continued to lose momentum.

French business activity plunged unexpectedly into contraction this month, retreating at the fastest pace in over four years, while Germany’s private sector expansion slowed to a four-year low in December.

But oil prices were supported after General Electric Co’s Baker Hughes energy services firm said on Friday that U.S. drillers cut four oil rigs in the week to Dec. 14, pulling the total count to the lowest since mid-October at 873.

“This, when combined with (expectations) Saudi Arabia is … to cut exports to the United States to draw down inventory builds (there) should provide a short-term base despite global slowdown fears, which continue to resonate,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

However, the current U.S. rig count, which serves as an early indicator of future output, is higher than a year ago when 747 rigs were active.

The Organisation of the Petroleum Exporting Countries and its Russia-led allies have agreed to curb output from January, in a move to be reviewed at a meeting in April. Saudi Arabia is OPEC’s de facto leader.

“The potential for a significant movement in the U.S. dollar clearly has an impact on oil pricing with the Fed meeting (this week). We’re looking outside the oil markets for its next major move,” said Michael McCarthy, chief markets strategist at CMC markets.

The U.S. Federal Open Market Committee (FOMC) is set to start a two-day meeting on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: getty images
Keywords: news, cnbc, companies, global, output, week, brent, crude, oil, meeting, futures, saudi, rigs, economy, steady, markets, worries, dips, prices


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Oil prices slip in line with bearish equities

Oil fell on Monday, in line with further declines in global stock markets, giving back some of the gains made last week when producer group OPEC and other key exporters agreed to cut their crude output. International Brent crude oil futures fell 63 cents, or 1 percent, to $61.04 a barrel by 8:20 a.m. Prices rose 3 percent on Friday after OPEC and some non-OPEC producers including heavyweight Russia said they would cut oil supply by 1.2 million barrels per day. They could disagree on prices and u


Oil fell on Monday, in line with further declines in global stock markets, giving back some of the gains made last week when producer group OPEC and other key exporters agreed to cut their crude output. International Brent crude oil futures fell 63 cents, or 1 percent, to $61.04 a barrel by 8:20 a.m. Prices rose 3 percent on Friday after OPEC and some non-OPEC producers including heavyweight Russia said they would cut oil supply by 1.2 million barrels per day. They could disagree on prices and u
Oil prices slip in line with bearish equities Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, oil, opec, west, cents, equities, prices, slip, line, wanted, inventories, bearish, really, crude, fell, cut


Oil prices slip in line with bearish equities

Oil fell on Monday, in line with further declines in global stock markets, giving back some of the gains made last week when producer group OPEC and other key exporters agreed to cut their crude output.

International Brent crude oil futures fell 63 cents, or 1 percent, to $61.04 a barrel by 8:20 a.m. ET (1320 GMT), while U.S. West Texas Intermediate crude lost 85 cents, or 1.6 percent, to trade at $51.76 a barrel.

Prices rose 3 percent on Friday after OPEC and some non-OPEC producers including heavyweight Russia said they would cut oil supply by 1.2 million barrels per day.

“They had one thing in common — none of them wanted to see inventories rise further. They could disagree on prices and upon the size of the cuts, but to really see inventories moving higher? No one wanted that,” SEB commodities strategist Bjarne Schieldrop said.

“Firstly, we’ll get some (price) stability, even if oil is weighed down by bearish equities. That really took the glow off oil,” he said.


Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: spencer platt, getty images
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US Treasury yields move higher amid fears of an economic slowdown

ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.8611 percent, while the yield on the 30-year Treasury bond was also higher at 3.1450 percent. Investors are increasingly concerned about a possible economic slowdown, shortly after the U.S., China and Japan all reported weaker-than-expected economic data. Meanwhile, the U.S. Treasury is set to auction $39 billion in 13-week bills and $36 billion in 26-week bills on Monday. In energy marke


ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.8611 percent, while the yield on the 30-year Treasury bond was also higher at 3.1450 percent. Investors are increasingly concerned about a possible economic slowdown, shortly after the U.S., China and Japan all reported weaker-than-expected economic data. Meanwhile, the U.S. Treasury is set to auction $39 billion in 13-week bills and $36 billion in 26-week bills on Monday. In energy marke
US Treasury yields move higher amid fears of an economic slowdown Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: sam meredith
Keywords: news, cnbc, companies, lower, yields, economic, fears, higher, bills, price, data, slowdown, crude, yield, amid, treasury, billion


US Treasury yields move higher amid fears of an economic slowdown

At around 5 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.8611 percent, while the yield on the 30-year Treasury bond was also higher at 3.1450 percent.

Investors are increasingly concerned about a possible economic slowdown, shortly after the U.S., China and Japan all reported weaker-than-expected economic data. It comes after Wall Street’s main indexes closed more than 2 percent lower on Friday, registering their largest weekly percentage declines since March.

On the data front, investors are likely to closely monitor the release of October’s Job Openings and Labor Turnover Survey (JOLTS) at around 10 a.m. ET.

Meanwhile, the U.S. Treasury is set to auction $39 billion in 13-week bills and $36 billion in 26-week bills on Monday.

In energy markets, crude prices were mixed after OPEC and allied non-OPEC oil producers agreed to implement a supply cut from January. Despite the news, the price outlook for 2019 remains uncertain on the back of an economic slowdown.

International benchmark Brent crude traded at around $61.66 on Monday, up around 0.05 percent, while U.S. West Texas Intermediate (WTI) stood at around $52.40, more than 0.4 percent lower.


Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: sam meredith
Keywords: news, cnbc, companies, lower, yields, economic, fears, higher, bills, price, data, slowdown, crude, yield, amid, treasury, billion


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Oil prices dip as stock markets slide, but trading tepid ahead of OPEC meeting

Oil prices fell along with weak stock markets on Thursday, but trading was tepid ahead of a meeting by producer group OPEC that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30 percent since October. International Brent crude oil futures were down 7 cents, or 0.1 percent, at $61.49 per barrel. Traders said oil prices were being weighed down by weak global financial markets, which saw stock markets tumble on Thursday. Led by Saudi Arabia, OPEC


Oil prices fell along with weak stock markets on Thursday, but trading was tepid ahead of a meeting by producer group OPEC that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30 percent since October. International Brent crude oil futures were down 7 cents, or 0.1 percent, at $61.49 per barrel. Traders said oil prices were being weighed down by weak global financial markets, which saw stock markets tumble on Thursday. Led by Saudi Arabia, OPEC
Oil prices dip as stock markets slide, but trading tepid ahead of OPEC meeting Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-06
Keywords: news, cnbc, companies, supply, prices, markets, million, oil, stock, production, dip, producer, meeting, tepid, slide, opec, crude, trading


Oil prices dip as stock markets slide, but trading tepid ahead of OPEC meeting

Oil prices fell along with weak stock markets on Thursday, but trading was tepid ahead of a meeting by producer group OPEC that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30 percent since October.

U.S. West Texas Intermediate (WTI) crude futures were at $52.66 per barrel at 0140 GMT, down 23 cents, or 0.4 percent, from their last close.

International Brent crude oil futures were down 7 cents, or 0.1 percent, at $61.49 per barrel.

Traders said oil prices were being weighed down by weak global financial markets, which saw stock markets tumble on Thursday.

Since early October, crude oil has lost around 30 percent of its value amid surging supply and fears that an economic downturn will erode fuel demand.

The Organisation of the Petroleum Exporting Countries (OPEC) is meeting at its headquarters in Vienna, Austria, on Thursday to decide its production policy.

Led by Saudi Arabia, OPEC’s crude oil production has risen by 4.1 percent since mid-2018, to 33.31 million barrels per day (bpd).

Oil output from the world’s biggest producers – OPEC, Russia and the United States – has increased by a 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting almost 60 percent of global consumption.

The increase alone is equivalent to the output of major OPEC producer United Arab Emirates.

Russia, a major oil producer but not a member of OPEC, will meet with the producer cartel on Friday to discuss production levels, and it is widely expected that a supply cut will be agreed.

“Markets…believe the production cut deal will be in range of 1-1.3 million bpd,” ANZ bank said on Thursday.


Company: cnbc, Activity: cnbc, Date: 2018-12-06
Keywords: news, cnbc, companies, supply, prices, markets, million, oil, stock, production, dip, producer, meeting, tepid, slide, opec, crude, trading


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China plans to buy US crude oil now that Trump and Xi have agreed to hit pause on the trade war

Chinese oil trader Unipec plans to resume U.S. crude shipments to China by March after the Xi-Trump deal at the G-20 meeting reduced the risk of tariffs being imposed on these imports, sources with knowledge of the matter said. China’s crude oil imports from the United States ground to a halt as a trade war between the two countries escalated this year. “Chinese buyers who want to buy U.S. crude will rush to import the oil during this window,” a senior executive from Asia’s largest refiner Sinop


Chinese oil trader Unipec plans to resume U.S. crude shipments to China by March after the Xi-Trump deal at the G-20 meeting reduced the risk of tariffs being imposed on these imports, sources with knowledge of the matter said. China’s crude oil imports from the United States ground to a halt as a trade war between the two countries escalated this year. “Chinese buyers who want to buy U.S. crude will rush to import the oil during this window,” a senior executive from Asia’s largest refiner Sinop
China plans to buy US crude oil now that Trump and Xi have agreed to hit pause on the trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: holger gogolin, istock, getty images
Keywords: news, cnbc, companies, plans, executive, xi, hit, unipec, china, sinopec, war, matter, crude, trump, imports, knowledge, import, trade, pause, sources, oil


China plans to buy US crude oil now that Trump and Xi have agreed to hit pause on the trade war

Chinese oil trader Unipec plans to resume U.S. crude shipments to China by March after the Xi-Trump deal at the G-20 meeting reduced the risk of tariffs being imposed on these imports, sources with knowledge of the matter said.

Three sources with knowledge of the matter said Unipec is looking to import U.S. oil by March 1, when the 90-day negotiating period agreed by the leaders of the world’s two biggest economies comes to an end.

China’s crude oil imports from the United States ground to a halt as a trade war between the two countries escalated this year.

“Chinese buyers who want to buy U.S. crude will rush to import the oil during this window,” a senior executive from Asia’s largest refiner Sinopec said, adding that the oil has to arrive in China before March 1.

“Oil prices are low, so it makes economic sense to store some crude as commercial inventories,” said the executive, who asked not to be named.

Unipec and Sinopec were not immediately available for comment. Unipec is the trading arm of Sinopec.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: holger gogolin, istock, getty images
Keywords: news, cnbc, companies, plans, executive, xi, hit, unipec, china, sinopec, war, matter, crude, trump, imports, knowledge, import, trade, pause, sources, oil


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Oil prices slip on global growth concerns, swelling US supply

Oil prices fell on Wednesday, pulled down by swelling U.S. inventories and a plunge in global stock markets as China’s government warned of increasing economic headwinds. International Brent crude oil futures were at $60.87 per barrel at 0508 GMT, down $1.21, or 2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $52.33 per barrel, down 92 cents, or 1.7 percent. Key to the global economic outlook will be whether the United States and China can resolve their


Oil prices fell on Wednesday, pulled down by swelling U.S. inventories and a plunge in global stock markets as China’s government warned of increasing economic headwinds. International Brent crude oil futures were at $60.87 per barrel at 0508 GMT, down $1.21, or 2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $52.33 per barrel, down 92 cents, or 1.7 percent. Key to the global economic outlook will be whether the United States and China can resolve their
Oil prices slip on global growth concerns, swelling US supply Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: jean-paul pelissier
Keywords: news, cnbc, companies, markets, swelling, barrel, concerns, wti, crude, brent, economic, global, slip, supply, prices, united, oil, growth


Oil prices slip on global growth concerns, swelling US supply

Oil prices fell on Wednesday, pulled down by swelling U.S. inventories and a plunge in global stock markets as China’s government warned of increasing economic headwinds.

International Brent crude oil futures were at $60.87 per barrel at 0508 GMT, down $1.21, or 2 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $52.33 per barrel, down 92 cents, or 1.7 percent.

Reuters technical commodity analyst Wang Tao said WTI could soon test support at $51.75 per barrel, while Brent was threatening to drop below $60 per barrel again soon.

Oil prices were pressured by a weekly report from the American Petroleum Institute (API) that said U.S. crude inventories rose by 5.4 million barrels in the week to Nov. 30, to 448 million barrels, in a sign that U.S. oil markets are in a growing glut.

Official U.S. government oil production and inventory data is due later on Wednesday.

More broadly, the slide in U.S. oil followed a tumble in global stock markets on Tuesday, with investors worried about the threat of a widespread economic slowdown.

Key to the global economic outlook will be whether the United States and China can resolve their trade disputes. Washington and Beijing announced a 90-day truce last weekend, during which neither side will further increase punitive import tariffs.

In a sign of easing tensions between the two world’s biggest economies, Chinese oil trader Unipec plans to resume U.S. crude shipments to China by March after the Xi-Trump deal at the G-20 meeting reduced the risk of tariffs being imposed on these imports, people with knowledge of the matter said.

Yet the truce may not last. U.S. President Donald Trump threatened on Tuesday to place “major tariffs” on Chinese goods imported into the United States if his administration didn’t reach a desirable deal with Beijing.

China’s state council on Wednesday issued guidance to support employment as the economy slows, saying the country should pay “high attention” to the impact on employment from increasing economic headwinds.

Bank of America Merrill Lynch said in its 2019 economic outlook, published on Tuesday, that “most major economies are likely to see decelerating activity”, although it added that “a steady stream of monetary and fiscal stimulus measures” was expected to stem the slowdown.

The bank said it expected Brent and WTI prices to average $70 and $59 per barrel respectively in 2019.

Brent and WTI have averaged $72.80 and $66.10 per barrel so far this year.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: jean-paul pelissier
Keywords: news, cnbc, companies, markets, swelling, barrel, concerns, wti, crude, brent, economic, global, slip, supply, prices, united, oil, growth


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US is well on its way to Trump’s goal of ‘energy dominance,’ says Marathon Petroleum CEO

US on its way to Trump’s goal of ‘energy dominance,’ says Marathon CEO 21 Hours Ago | 01:26President Donald Trump’s goal of making the United States a global superpower in energy is starting to come true, Marathon Petroleum Corp. Chairman and CEO Gary Heminger told CNBC on Tuesday. Recent declines in oil prices haven’t stopped U.S. producers from pumping more oil ahead of OPEC’s meetings later this week, at which the group of oil-exporting countries are expected to cut production. “The U.S. refi


US on its way to Trump’s goal of ‘energy dominance,’ says Marathon CEO 21 Hours Ago | 01:26President Donald Trump’s goal of making the United States a global superpower in energy is starting to come true, Marathon Petroleum Corp. Chairman and CEO Gary Heminger told CNBC on Tuesday. Recent declines in oil prices haven’t stopped U.S. producers from pumping more oil ahead of OPEC’s meetings later this week, at which the group of oil-exporting countries are expected to cut production. “The U.S. refi
US is well on its way to Trump’s goal of ‘energy dominance,’ says Marathon Petroleum CEO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, heminger, oil, way, believe, crude, goal, prices, petroleum, trumps, ceo, dominance, energy, marathon


US is well on its way to Trump's goal of 'energy dominance,' says Marathon Petroleum CEO

US on its way to Trump’s goal of ‘energy dominance,’ says Marathon CEO 21 Hours Ago | 01:26

President Donald Trump’s goal of making the United States a global superpower in energy is starting to come true, Marathon Petroleum Corp. Chairman and CEO Gary Heminger told CNBC on Tuesday.

“When I look at the president’s theme to begin with and the beginning of his administration, he wanted to have energy dominance in the U.S. and I believe that we are well on our way,” Heminger told Jim Cramer in an exclusive “Mad Money” interview. “We’re the largest producer in the world today.”

Recent declines in oil prices haven’t stopped U.S. producers from pumping more oil ahead of OPEC’s meetings later this week, at which the group of oil-exporting countries are expected to cut production.

That puts the United States in a league above its competitors, said the Marathon chief, whose Ohio-based company specializes in petroleum refining, marketing and transportation.

“The U.S. refining system [is] second to none of anyone in the industry, so I believe we’re well on our way now” to global energy dominance, Heminger said.

The CEO added that he expected OPEC’s meetings in Vienna, Austria this Thursday and Friday to result in “a pullback in OPEC production,” in which case “we’ll see crude prices inch up” from their current levels.

And although oil’s recent pummeling has benefited business at Marathon — where oil is part of Marathon’s cost of goods sold, so price declines translate into higher margins — Heminger said the company sees prices for the benchmark West Texas Intermediate crude rising significantly in 2019.

“We really believe the price is probably going to end up being … $65 to [$]70 in 2019, on an average,” he said. “I believe we’ve averaged almost $65 — about [$]64.50 — year to date in 2018, so we think we’re being conservative looking at that number for next year.”

WTI crude futures fell 0.64 percent on Tuesday to $52.61. Year to date, the commodity has lost 8.77 percent.

Shares of Marathon Petroleum shed 2 percent amid Tuesday’s marketwide meltdown, settling at $63.34.


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, heminger, oil, way, believe, crude, goal, prices, petroleum, trumps, ceo, dominance, energy, marathon


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Oil prices extend gains on expected OPEC-led supply cuts

Oil prices rose on Tuesday, extending strong gains from the previous day amid expected OPEC-led supply cuts and a mandated reduction in Canadian output. International Brent crude oil futures were up 40 cents, or 0.7 percent, at $62.09 per barrel. It added that it expected a joint effort by OPEC and Russia to withhold supply to push Brent oil prices “above the mid-$60 per barrel level”. OPEC’s biggest problem is surging production in the United States, where output has grown by around 2 million b


Oil prices rose on Tuesday, extending strong gains from the previous day amid expected OPEC-led supply cuts and a mandated reduction in Canadian output. International Brent crude oil futures were up 40 cents, or 0.7 percent, at $62.09 per barrel. It added that it expected a joint effort by OPEC and Russia to withhold supply to push Brent oil prices “above the mid-$60 per barrel level”. OPEC’s biggest problem is surging production in the United States, where output has grown by around 2 million b
Oil prices extend gains on expected OPEC-led supply cuts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: andrew burton, getty images
Keywords: news, cnbc, companies, opec, crude, extend, bank, united, million, cuts, gains, bpd, production, opecled, expected, output, supply, prices, oil, vienna


Oil prices extend gains on expected OPEC-led supply cuts

Oil prices rose on Tuesday, extending strong gains from the previous day amid expected OPEC-led supply cuts and a mandated reduction in Canadian output.

The 90-day truce in the trade dispute between the United States and China was also still supporting markets, traders said.

U.S. West Texas Intermediate (WTI) crude futures were at $53.35 per barrel at 0137 GMT, up 40 cents, or 0.8 percent, from their last close.

International Brent crude oil futures were up 40 cents, or 0.7 percent, at $62.09 per barrel.

Both crude benchmarks climbed by around 4 percent the previous session after Washington and Beijing agreed a truce in their trade disputes and said they would negotiate for 90 days before taking any further action.

The Middle East dominated Organization of the Petroleum Exporting Countries (OPEC) will on Dec. 6 meet at its headquarters in Vienna, Austria, to agree a joint output policy.

It will also discuss policy with non-OPEC production giant Russia.

“We expect OPEC to follow suit and agree to a production cut in Vienna this coming Thursday,” U.S. bank Goldman Sachs said in a note to clients.

“A cut in OPEC and Russia production of 1.3 million barrels per day (bpd) will be required to reverse the ongoing counter-seasonally large increase in inventories,” the bank said.

It added that it expected a joint effort by OPEC and Russia to withhold supply to push Brent oil prices “above the mid-$60 per barrel level”.

Helping OPEC in its efforts to rein in emerging oversupply was an order on Sunday by the Canadian province of Alberta for producers to scale back output by 325,000 bpd until excess crude in storage is reduced.

OPEC’s biggest problem is surging production in the United States, where output has grown by around 2 million bpd in a year to more than 11.5 million bpd.

China in November resumed imports of U.S. crude oil, taking in one tanker at the end of last month, according to ship-tracking data, with another on order for delivery in January.

Britain’s Barclays bank pointed out that production in the state of Texas alone “reached 4.69 million bpd in September, compared with Iraqi output of 4.66 million by our estimates”.

Iraq is OPEC’s second-biggest oil producer, behind only Saudi Arabia.


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: andrew burton, getty images
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Oil prices soar more than 4.5 percent after US, China suspend trade hostilities

Most of Alberta’s oil is exported to the United States. International Brent crude oil futures were up $2.8 per barrel, or 4.8 percent, at $62.30 a barrel. The trade war between the world’s two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown. Russian oil output stood at 11.37 million bpd in November, down from a post-Soviet record of 11.41 million bpd it reached in October, Energy Ministry data showed on Sunday. Meanwhile, oil producers in the Unit


Most of Alberta’s oil is exported to the United States. International Brent crude oil futures were up $2.8 per barrel, or 4.8 percent, at $62.30 a barrel. The trade war between the world’s two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown. Russian oil output stood at 11.37 million bpd in November, down from a post-Soviet record of 11.41 million bpd it reached in October, Energy Ministry data showed on Sunday. Meanwhile, oil producers in the Unit
Oil prices soar more than 4.5 percent after US, China suspend trade hostilities Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, trade, suspend, million, bpd, china, soar, 45, oil, prices, crude, united, meeting, hostilities, states, tariffs


Oil prices soar more than 4.5 percent after US, China suspend trade hostilities

Oil prices surged on Monday after the United States and China agreed to a 90-day truce in their trade war, and ahead of a meeting this week by producer club OPEC that is expected to result in a supply cut.

U.S. West Texas Intermediate (WTI) crude futures were at $53.63 per barrel at 0358 GMT, up $2.73 per barrel, or 5.4 percent from their last close.

U.S. crude prices were further pushed up by an announcement from Canada that Alberta province will force producers to cut output by 8.7 percent, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage. Most of Alberta’s oil is exported to the United States.

Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore said Alberta’s decision was “an unprecedented step to ease a crisis in the Canadian energy industry.”

International Brent crude oil futures were up $2.8 per barrel, or 4.8 percent, at $62.30 a barrel.

China and the United States agreed during a weekend meeting in Argentina of the Group of 20 (G-20) leading economies not to impose additional trade tariffs for at least 90 days while the pair hold talks to resolve existing disputes.

The trade war between the world’s two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown.

Crude oil has not been included in the list of hundreds of products each side has slapped with import tariffs, but traders said the positive sentiment of the truce was also driving crude markets.

“The agreement to keep talking for 90 days during which tariffs are paused is an upside surprise,” U.S. bank Morgan Stanley said in a note to clients on Monday. It added, though, that trade negotiations would be “bumpy”.

Overall, Morgan Stanley said it saw a “slight upside in our 2019 growth outlook” because of the renewed talks.

Looking ahead, oil traders will eye a meeting by the Organization of the Petroleum Exporting Countries (OPEC) on Dec. 6. At the meeting, the producer group, along with non-OPEC member Russia, is expected to announce cuts aimed at reining in a production overhang that has pulled down crude prices by around a third since October.

No official announcements regarding supply cuts have yet been made, but most analysts expect a reduction of 1 million-1.4 million bpd versus October levels, which were the highest by OPEC as a group since December 2016.

Russian oil output stood at 11.37 million bpd in November, down from a post-Soviet record of 11.41 million bpd it reached in October, Energy Ministry data showed on Sunday.

“Expectations are for coordinated cuts to reduce an oversupplied market and to realign with slower growth in demand,” said Fitch Solutions in a note on Monday.

Meanwhile, oil producers in the United States continue to churn out record amounts of oil, with crude output at an unprecedented level of more than 11.5 million bpd.

With drilling activity still high, most analysts expect U.S. oil production to rise further in 2019.


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, trade, suspend, million, bpd, china, soar, 45, oil, prices, crude, united, meeting, hostilities, states, tariffs


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Caterpillar upgraded by Bank of America because of trade cease-fire: ‘We see 20% upside potential’

Caterpillar shares jumped more than 4 percent in premarket trading to $141.50. The U.S. agreed to leave tariffs on more than $200 billion worth of Chinese products at 10 percent. The temporary agreement boosted crude oil, with WTI futures jumping 4 percent. “Caterpillar’s share price is highly correlated with crude oil prices and crude is down over 30 percent since early October,” Gilardi said. “Some combination of global demand improvement and/or supply curtailments could propel CAT higher if W


Caterpillar shares jumped more than 4 percent in premarket trading to $141.50. The U.S. agreed to leave tariffs on more than $200 billion worth of Chinese products at 10 percent. The temporary agreement boosted crude oil, with WTI futures jumping 4 percent. “Caterpillar’s share price is highly correlated with crude oil prices and crude is down over 30 percent since early October,” Gilardi said. “Some combination of global demand improvement and/or supply curtailments could propel CAT higher if W
Caterpillar upgraded by Bank of America because of trade cease-fire: ‘We see 20% upside potential’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: john melloy, ingo wagner, picture alliance, getty images
Keywords: news, cnbc, companies, upgraded, bank, tariffs, trade, upside, crude, potential, ceasefire, agreed, shares, 20, america, oil, temporary, price, caterpillar, wti, talks


Caterpillar upgraded by Bank of America because of trade cease-fire: 'We see 20% upside potential'

Bank of America Merrill Lynch wasted no time in recommending clients rush out and buy one of the key companies affected by the China-U.S. trade war, now in a cease-fire

The firm on Monday upgraded shares of Caterpillar to buy from neutral and raised its 12-month price forecast on the stock to $163 from $140. Caterpillar shares jumped more than 4 percent in premarket trading to $141.50.

“We are still late in the cycle, but two key macro developments lead us to upgrade CAT at 10.9x 2019E EPS and an 8% FCF yield. First, Fed Chairman Jerome Powell seemed less hawkish last week on the future path of interest rate increases, and 2) the US-China agreed to a temporary cease fire on additional US tariff increases,” BofAML analyst Ross Gilardi said in a note to investors.

“We see 20 percent upside potential,” he added.

President Donald Trump and Chinese President Xi Jinping met for dinner on Saturday at the G-20 summit in Argentina and agreed to hold off on additional tariffs on each other’s goods at the start of the new year to allow for talks to continue for 90 days. The U.S. agreed to leave tariffs on more than $200 billion worth of Chinese products at 10 percent.

In the meantime, Caterpillar may get some direct help from the weekend talks because China agreed to purchase a “substantial” amount of agricultural, energy, and industrial U.S. products.

The temporary agreement boosted crude oil, with WTI futures jumping 4 percent.

“Caterpillar’s share price is highly correlated with crude oil prices and crude is down over 30 percent since early October,” Gilardi said. “Some combination of global demand improvement and/or supply curtailments could propel CAT higher if WTI starts to recover.”


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: john melloy, ingo wagner, picture alliance, getty images
Keywords: news, cnbc, companies, upgraded, bank, tariffs, trade, upside, crude, potential, ceasefire, agreed, shares, 20, america, oil, temporary, price, caterpillar, wti, talks


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