Oil prices will stay ‘relatively benign’ despite escalating Iran tensions, Morgan Stanley says

Oil supertanker Grace 1 on suspicion of being carrying Iranian crude oil to Syria is seen near Gibraltar, Spain July 4, 2019. Morgan Stanley does not expect rising tensions in the world’s most important oil chokepoint to lead to a sustained jump in oil prices. Instead, the investment bank expects non-OPEC supply growth to keep crude futures relatively subdued over the coming months. Oil prices rose more than 2% Monday morning, amid concerns that Iran’s seizure of a British tanker last week could


Oil supertanker Grace 1 on suspicion of being carrying Iranian crude oil to Syria is seen near Gibraltar, Spain July 4, 2019. Morgan Stanley does not expect rising tensions in the world’s most important oil chokepoint to lead to a sustained jump in oil prices. Instead, the investment bank expects non-OPEC supply growth to keep crude futures relatively subdued over the coming months. Oil prices rose more than 2% Monday morning, amid concerns that Iran’s seizure of a British tanker last week could
Oil prices will stay ‘relatively benign’ despite escalating Iran tensions, Morgan Stanley says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: sam meredith
Keywords: news, cnbc, companies, crude, rats, oil, supply, stay, stanley, tensions, morgan, escalating, disruptions, nonopec, iran, worlds, despite, relatively, lead, prices


Oil prices will stay 'relatively benign' despite escalating Iran tensions, Morgan Stanley says

Oil supertanker Grace 1 on suspicion of being carrying Iranian crude oil to Syria is seen near Gibraltar, Spain July 4, 2019.

Morgan Stanley does not expect rising tensions in the world’s most important oil chokepoint to lead to a sustained jump in oil prices.

Instead, the investment bank expects non-OPEC supply growth to keep crude futures relatively subdued over the coming months.

Oil prices rose more than 2% Monday morning, amid concerns that Iran’s seizure of a British tanker last week could lead to disruptions in the energy-rich Gulf.

When asked whether he was concerned about possible supply disruptions in the wake of intensifying geopolitical tensions in the Middle East, Morgan Stanley’s global oil strategist Martijn Rats, told CNBC: “Actually, on the whole, not that much.”

“The history of fear around the Strait of Hormuz suggests that from time to time, this concern can flare up and we can have some disruptions but they rarely last for very long.”

“There is a difference in the oil market this time around because non-OPEC is simply growing so fast. That is the real game changer and that’s why the price action is relatively benign,” Rats said on Monday.


Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: sam meredith
Keywords: news, cnbc, companies, crude, rats, oil, supply, stay, stanley, tensions, morgan, escalating, disruptions, nonopec, iran, worlds, despite, relatively, lead, prices


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Bitcoin vs Libra: Here are the key differences between the two cryptocurrencies

It’s an experiment in monetary systems for the digital age, and has inevitably been compared to popular cryptocurrencies like bitcoin. Other than the fact that they both come with a white paper and are referred to as cryptocurrencies, Libra and bitcoin are actually very different. But unlike bitcoin, Libra’s blockchain is permissioned — at least for now — meaning that transactions can only be added to it by a group of trusted parties. “Bitcoin supply is fixed and cannot react to the market’s dem


It’s an experiment in monetary systems for the digital age, and has inevitably been compared to popular cryptocurrencies like bitcoin. Other than the fact that they both come with a white paper and are referred to as cryptocurrencies, Libra and bitcoin are actually very different. But unlike bitcoin, Libra’s blockchain is permissioned — at least for now — meaning that transactions can only be added to it by a group of trusted parties. “Bitcoin supply is fixed and cannot react to the market’s dem
Bitcoin vs Libra: Here are the key differences between the two cryptocurrencies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: ryan browne
Keywords: news, cnbc, companies, libra, bitcoin, cryptocurrency, vs, supply, cryptocurrencies, differences, blockchain, key, currency, libras, digital, trusted


Bitcoin vs Libra: Here are the key differences between the two cryptocurrencies

A visual representation of a cryptocurrency coin on display in front of the logos for Facebook and Libra. Chesnot | Getty Images

Facebook has made headlines of late with its plans to create a cryptocurrency. The social media company has been forced to defend the project on Capitol Hill, amid regulatory concerns around data privacy and potential illegal usage, while the G-7 has warned it poses “serious” legal risks. It’s an experiment in monetary systems for the digital age, and has inevitably been compared to popular cryptocurrencies like bitcoin. However, many experts question whether Libra can even be called a cryptocurrency. Other than the fact that they both come with a white paper and are referred to as cryptocurrencies, Libra and bitcoin are actually very different. Here’s a rundown of the key differences between the two.

Different technology

One of the biggest differences lies in the underlying technology behind both currencies. With bitcoin, transactions are recorded anonymously on a public ledger known as the blockchain. It’s essentially a database maintained by a network of computers, on which transactions are secured in such a way that makes it virtually impossible to tamper with. Libra also uses a form of blockchain, or distributed ledger technology. But unlike bitcoin, Libra’s blockchain is permissioned — at least for now — meaning that transactions can only be added to it by a group of trusted parties. That’s where the Libra Association, a Switzerland-based consortium of companies including Visa and Uber, comes in. Each of the nonprofit organization’s members have invested a minimum of $10 million into the project. “Libra will create a centralized structure governed by an unelected ‘association’ composed exclusively of large institutions who have purchased their voting rights,” said Ido Sadeh Man, founder and president of the Saga Foundation, a cryptocurrency firm that counts J.P. Morgan Chairman Jacob Frenkel as an advisor.

It’s different to bitcoin’s network, which can be accessed and maintained by anyone with decent enough hardware and access to the internet. “Cryptocurrencies are defined by their lack of reliance on trusted intermediaries,” Peter Van Valkenburgh, director of research at the cryptocurrency policy think-tank Coin Center, said in a recent blog post. “We believe that Libra is not a cryptocurrency because of its use of a permissioned ledger and its reliance on a trusted issuer to hold and manage a fund of assets that back the currency.”

Different use cases

Bitcoin’s white paper describes the virtual currency as a peer-to-peer payment system, allowing people to exchange money without going through a bank. It’s commonly used today as a form of investment, with the term “HODL” being a common slang phrase in the industry to describe buying and staying invested in the cryptocurrency for the long term. It’s frequently been referred to as “digital gold. ” Libra’s primary purpose is to be used in cross-border payments and money transfers. The currency is tied to a basket of government-backed currencies and other assets, to avoid the volatile swings often seen in cryptocurrencies like bitcoin and ether. Referred to by many in the industry as a “stablecoin,” Libra is aimed at maintaining a stable value. David Marcus, the Facebook executive leading the blockchain initiative, has previously said it will work “more like a traditional currency” than a cryptocurrency. “Bitcoin and Facebook’s Libra both represent stages in the evolution of currency but in starkly different ways,” Charles Hayter, co-founder and CEO of digital currency comparison platform CryptoCompare, told CNBC.

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“Bitcoin is permissionless, fully decentralized, deflationary and volatile. Libra is permissioned, more centralized, governed by supply and demand and pegged to fiat currencies.” What Hayter means by “governed by supply and demand” is that Facebook and its partner companies can adjust the supply to match a quantity of other assets held in reserve, effectively maintaining a stable price even when demand changes. Bitcoin on the other hand has a fixed supply. The total number of bitcoins that will ever be minted is “hard-capped” at 21 million. “Bitcoin supply is fixed and cannot react to the market’s demand,” the Saga Foundation’s Sadeh Man said. “Libras are created or burned when one of Libra’s authorized resellers deposit or withdraw money from its reserve.”

Different regulatory questions

Facebook’s currency has taken the spotlight when it comes to talk of regulating cryptocurrencies. But some worry the company’s blockchain project could be lumped in with other digital assets by regulators. That would be problematic given the difference between Libra and a digital currency like bitcoin. Whereas bitcoin rules out the need for financial intermediaries, Libra’s model is reliant on the entities which form the Libra Association, Coin Center’s Van Valkenburgh said. “A system without intermediaries is a system without intermediary risk, and thus no need for regulation aimed at safeguarding against the types of risk presented by intermediaries,” he said. The Libra Association currently consists of 28 founding members, according to the Libra white paper, and is hoping to reach 100 members by the time the currency launches. The token is slated for launch in the first half of 2020. Though bitcoin’s network involves so-called “miners” who record transactions, it wouldn’t make sense to regulated them as they aren’t trusted custodians of user funds, Van Valkenburgh said. Cryptocurrency exchanges and wallets on the other hand do require regulatory oversight, he added.


Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: ryan browne
Keywords: news, cnbc, companies, libra, bitcoin, cryptocurrency, vs, supply, cryptocurrencies, differences, blockchain, key, currency, libras, digital, trusted


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BlackRock CEO Larry Fink: CEOs pulling supply chains out of China

Companies are moving their supply chains out of China instead of waiting for a resolution of the trade war between Washington and Beijing, BlackRock Chairman and CEO Larry Fink told CNBC on Friday. “We’re hearing from CEOs that more and more supply chains are moving out of China right now, ” Fink said on “Squawk Box.” “People are not waiting, companies are not waiting to see what the outcome is.” Companies began announcing in May that they would move from China to Vietnam, as China and the U.S.


Companies are moving their supply chains out of China instead of waiting for a resolution of the trade war between Washington and Beijing, BlackRock Chairman and CEO Larry Fink told CNBC on Friday. “We’re hearing from CEOs that more and more supply chains are moving out of China right now, ” Fink said on “Squawk Box.” “People are not waiting, companies are not waiting to see what the outcome is.” Companies began announcing in May that they would move from China to Vietnam, as China and the U.S.
BlackRock CEO Larry Fink: CEOs pulling supply chains out of China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: jessica bursztynsky, matthew j belvedere
Keywords: news, cnbc, companies, chains, supply, trade, vietnam, starting, larry, companies, waiting, moving, blackrock, fink, china, ceos, ceo, pulling, worlds


BlackRock CEO Larry Fink: CEOs pulling supply chains out of China

Companies are moving their supply chains out of China instead of waiting for a resolution of the trade war between Washington and Beijing, BlackRock Chairman and CEO Larry Fink told CNBC on Friday.

“We’re hearing from CEOs that more and more supply chains are moving out of China right now, ” Fink said on “Squawk Box.” “People are not waiting, companies are not waiting to see what the outcome is.”

The trade fight between the world’s two largest economies has been going on for about a year, and businesses are starting to feel the repercussions.

President Donald Trump has slapped 25% tariffs on $200 billion worth of Chinese goods and continues to threaten duties on an additional $325 billion of goods as trade negotiations continue.

More than 50 multinational companies are moving production out of China, including Apple, Nintendo and Dell, CNBC previously reported. Companies began announcing in May that they would move from China to Vietnam, as China and the U.S. stepped up tit-for-tat duties.

Brooks Running — which is part of Warren Buffett’s Berkshire Hathaway — said in May it would be “predominantly in Vietnam by the end of the year,” adding that about 8,000 jobs will move there from China.

At the same, the Chinese economy is starting to lag, having grown just 6.2% in its second quarter. That’s the weakest rate in at least 27 years. Trade data released last week showed China’s June exports fell 1.3% year over year due to the tariffs.

“I do believe the trend in China continues to be downward, ” said Fink, co-founder of the world’s largest money manager. “I think long term, China knows they need to find ways to stimulate more of their domestic economy.”


Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: jessica bursztynsky, matthew j belvedere
Keywords: news, cnbc, companies, chains, supply, trade, vietnam, starting, larry, companies, waiting, moving, blackrock, fink, china, ceos, ceo, pulling, worlds


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Here’s why the Strait of Hormuz is the world’s most important oil chokepoint

The Strait of Hormuz is a critical gateway to the world’s oil industry, with more than a fifth of global oil supply flowing through a narrow sea channel used by Gulf countries like Iran, Saudi Arabia and the United Arab Emirates. That’s the equivalent of about 21% of global petroleum liquids consumption — making it the world’s most important oil chokepoint. The EIA defines a chokepoint as a narrow channel along widely used global sea routes that are critical to energy security. Flows through the


The Strait of Hormuz is a critical gateway to the world’s oil industry, with more than a fifth of global oil supply flowing through a narrow sea channel used by Gulf countries like Iran, Saudi Arabia and the United Arab Emirates. That’s the equivalent of about 21% of global petroleum liquids consumption — making it the world’s most important oil chokepoint. The EIA defines a chokepoint as a narrow channel along widely used global sea routes that are critical to energy security. Flows through the
Here’s why the Strait of Hormuz is the world’s most important oil chokepoint Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: sam meredith
Keywords: news, cnbc, companies, narrow, hormuz, heres, shipping, worlds, important, oil, strait, chokepoint, global, channel, energy, used, supply


Here's why the Strait of Hormuz is the world's most important oil chokepoint

The Strait of Hormuz is a critical gateway to the world’s oil industry, with more than a fifth of global oil supply flowing through a narrow sea channel used by Gulf countries like Iran, Saudi Arabia and the United Arab Emirates.

The strategically important waterway links crude producers in the Middle East with key markets across the world.

Daily oil flow in the Strait averaged 21 million barrels per day in 2018, according to the U.S. Energy Information Administration (EIA). That’s the equivalent of about 21% of global petroleum liquids consumption — making it the world’s most important oil chokepoint.

The EIA defines a chokepoint as a narrow channel along widely used global sea routes that are critical to energy security.

Therefore, the inability of oil to transit a major chokepoint, even temporarily, can lead to substantial supply delays and higher shipping costs — resulting in higher world energy prices.

Most chokepoints can be circumvented by using other shipping channels but some, such as the Strait of Hormuz, have no practical alternatives.

Flows through the narrow channel in 2018 made up about one-third of total global seaborne traded oil. More than one-quarter of global liquefied natural gas trade (LNG) also transited the shipping channel last year.


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: sam meredith
Keywords: news, cnbc, companies, narrow, hormuz, heres, shipping, worlds, important, oil, strait, chokepoint, global, channel, energy, used, supply


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Your first trade for Tuesday, July 9

The housing market is about to shift in a bad way for buyersInventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low. Real Estateread more


The housing market is about to shift in a bad way for buyersInventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low. Real Estateread more
Your first trade for Tuesday, July 9 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: tyler bailey
Keywords: news, cnbc, companies, housing, half, market, supply, trade, second, lowreal, soon, shift, hit, way


Your first trade for Tuesday, July 9

The housing market is about to shift in a bad way for buyers

Inventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low.

Real Estate

read more


Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: tyler bailey
Keywords: news, cnbc, companies, housing, half, market, supply, trade, second, lowreal, soon, shift, hit, way


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Cisco plans to acquire Acacia Communications in a $2.6 billion deal

The housing market is about to shift in a bad way for buyersInventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low. Real Estateread more


The housing market is about to shift in a bad way for buyersInventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low. Real Estateread more
Cisco plans to acquire Acacia Communications in a $2.6 billion deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: lauren feiner
Keywords: news, cnbc, companies, housing, half, market, acacia, supply, soon, cisco, acquire, deal, billion, plans, communications, second, 26, shift, lowreal, hit, way


Cisco plans to acquire Acacia Communications in a $2.6 billion deal

The housing market is about to shift in a bad way for buyers

Inventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low.

Real Estate

read more


Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: lauren feiner
Keywords: news, cnbc, companies, housing, half, market, acacia, supply, soon, cisco, acquire, deal, billion, plans, communications, second, 26, shift, lowreal, hit, way


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Here are Barclay’s favorite tech stocks into earnings

The housing market is about to shift in a bad way for buyersInventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low. Real Estateread more


The housing market is about to shift in a bad way for buyersInventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low. Real Estateread more
Here are Barclay’s favorite tech stocks into earnings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, supply, lowreal, tech, stocks, earnings, market, housing, favorite, barclays, soon, half, shift, second, hit, way


Here are Barclay's favorite tech stocks into earnings

The housing market is about to shift in a bad way for buyers

Inventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low.

Real Estate

read more


Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, supply, lowreal, tech, stocks, earnings, market, housing, favorite, barclays, soon, half, shift, second, hit, way


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Guggenheim says Best Buy is the most undervalued large-cap retailer, sees an 11% upside

The housing market is about to shift in a bad way for buyersInventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low. Real Estateread more


The housing market is about to shift in a bad way for buyersInventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low. Real Estateread more
Guggenheim says Best Buy is the most undervalued large-cap retailer, sees an 11% upside Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, supply, 11, retailer, lowreal, market, largecap, second, housing, buy, soon, hit, half, guggenheim, shift, best, undervalued, upside, sees, way


Guggenheim says Best Buy is the most undervalued large-cap retailer, sees an 11% upside

The housing market is about to shift in a bad way for buyers

Inventory began to grow in the second half of last year, but supply will soon drop yet again, and could hit a new low.

Real Estate

read more


Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, supply, 11, retailer, lowreal, market, largecap, second, housing, buy, soon, hit, half, guggenheim, shift, best, undervalued, upside, sees, way


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US oil rises slightly amid worries over economic growth

U.S. West Texas Intermediate (WTI) gained 17 cents, or 0.3%, to settle at $57.51 a barrel. Both benchmarks were set to record weekly losses as concerns about a slowing global economy outweighed risks to supply. “We’ve got mixed data weak manufacturing data from around the globe, but then we have a strong job numbers in the U.S.,” said Phil Flynn, an analyst at Price Futures Group in Chicago. However, new orders for U.S. factory goods fell for a second straight month in May, government data showe


U.S. West Texas Intermediate (WTI) gained 17 cents, or 0.3%, to settle at $57.51 a barrel. Both benchmarks were set to record weekly losses as concerns about a slowing global economy outweighed risks to supply. “We’ve got mixed data weak manufacturing data from around the globe, but then we have a strong job numbers in the U.S.,” said Phil Flynn, an analyst at Price Futures Group in Chicago. However, new orders for U.S. factory goods fell for a second straight month in May, government data showe
US oil rises slightly amid worries over economic growth Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05
Keywords: news, cnbc, companies, amid, economic, wti, economy, weak, oil, supported, supply, growth, slightly, data, opec, barrel, rises, worries, weekly


US oil rises slightly amid worries over economic growth

Oil prices climbed on Friday, supported by tensions over Iran and a decision by OPEC and its allies to extend an output supply cut deal until next year, but mixed economic data limited the rally.

Brent was up 86 cents, or 1.4%, to $64.16 a barrel. U.S. West Texas Intermediate (WTI) gained 17 cents, or 0.3%, to settle at $57.51 a barrel. The U.S. market was closed on Thursday for a national holiday, and WTI trade volumes remained light on Friday.

Both benchmarks were set to record weekly losses as concerns about a slowing global economy outweighed risks to supply.

“We’ve got mixed data weak manufacturing data from around the globe, but then we have a strong job numbers in the U.S.,” said Phil Flynn, an analyst at Price Futures Group in Chicago.

German industrial orders fell far more than expected in May, and the Economy Ministry said this sector of Europe’s largest economy was likely to remain weak in coming months.

The U.S. Labor Department said nonfarm employers added 224,000 jobs last month, the most in five months, easing fears about weakening global demand for crude. However, new orders for U.S. factory goods fell for a second straight month in May, government data showed, stoking economic concerns.

The U.S. Energy Information Administration reported on Wednesday a weekly decline of 1.1 million barrels in crude stocks, smaller than the 5 million barrel draw reported by the American Petroleum Institute and less than analysts had forecast.

The Organization of the Petroleum Exporting Countries and other producers such as Russia, known as OPEC+, supported prices by extending their deal on supply cuts.

Tension in the Middle East also offered support, particularly to Brent. “Brent is pricing in more of the geopolitical risk than WTI,” Flynn said.

Iran threatened on Friday to capture a British ship after British forces seized an Iranian tanker in Gibraltar over accusations the ship was violating EU sanctions on Syria.

“It is just another sign that the market sentiment is not strong enough to react to those headlines and events, which is quite unusual,” Petromatrix oil analyst Olivier Jakob said.

A Reuters survey found OPEC oil output sank to a new five-year low in June, as a rise in Saudi supply did not offset losses in Iran and Venezuela due to U.S. sanctions and other outages elsewhere in the group.


Company: cnbc, Activity: cnbc, Date: 2019-07-05
Keywords: news, cnbc, companies, amid, economic, wti, economy, weak, oil, supported, supply, growth, slightly, data, opec, barrel, rises, worries, weekly


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Oil prices ease as demand worries counter OPEC supply cut extension

“After 2-1/2 years of production cuts, the effects of rolling over production cuts is losing steam,” said Edward Moya, senior market analyst at OANDA in New York, adding that markets remained nervous about demand. However, the decision to extend production curbs would continue to support oil prices, as OPEC looked to maintain market equilibrium, he said. The Organization of the Petroleum Exporting Countries (OPEC) agreed on Monday to extend oil supply cuts until March 2020 as the group’s members


“After 2-1/2 years of production cuts, the effects of rolling over production cuts is losing steam,” said Edward Moya, senior market analyst at OANDA in New York, adding that markets remained nervous about demand. However, the decision to extend production curbs would continue to support oil prices, as OPEC looked to maintain market equilibrium, he said. The Organization of the Petroleum Exporting Countries (OPEC) agreed on Monday to extend oil supply cuts until March 2020 as the group’s members
Oil prices ease as demand worries counter OPEC supply cut extension Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-02
Keywords: news, cnbc, companies, extend, worries, supply, counter, market, cut, ease, cuts, agreed, demand, extension, prices, oil, production, global, opec, crude


Oil prices ease as demand worries counter OPEC supply cut extension

An Iraqi worker gauges gas emissions from an oil pipe at the Daura oil refiner

Oil prices drifted lower on Tuesday, as weak global data raised concerns about future demand for the commodity despite a positive boost from OPEC’s decision to extend supply cuts until next March.

Brent crude futures for September delivery were trading down 15 cents, or 0.2%, at $64.91 a barrel by 0311 GMT after dipping to $64.66 earlier.

Brent climbed more than $2 a barrel on Monday before paring gains later in the day.

U.S. crude futures for August were down 25 cents, or 0.4%, at $58.84 a barrel, after touching their highest in over five weeks on Monday.

“After 2-1/2 years of production cuts, the effects of rolling over production cuts is losing steam,” said Edward Moya, senior market analyst at OANDA in New York, adding that markets remained nervous about demand.

“The trade war is not likely to get resolved any time soon and while central banks globally are expected to deliver fresh stimulus in the coming months, economic activity is continuing to trend lower.”

While the U.S. and China agreed at a recent Group of 20 leaders summit to restart trade talks, indications that factory activity shrank across much of Europe and Asia in June while growth in manufacturing cooled in the United States weighed on oil prices.

“The weaker PMI prints killed sentiment overnight, and the market started to factor in the realm of the unknown around shale (oil), so (investors) were worried about the fear of oversupply in the face of weaker demand,” said Stephen Innes, managing partner at Vanguard Markets in Bangkok.

However, the decision to extend production curbs would continue to support oil prices, as OPEC looked to maintain market equilibrium, he said.

The Organization of the Petroleum Exporting Countries (OPEC) agreed on Monday to extend oil supply cuts until March 2020 as the group’s members overcame their differences in order to try to prop up the price of crude.

OPEC is slated to meet with Russia and other producers, an alliance known as OPEC+, later on Tuesday to discuss supply cuts amid surging U.S. output.

Russian President Vladimir Putin said on Saturday he had agreed with Saudi Arabia to extend global output cuts until December 2019 or March 2020.

Russia reduced oil production in June by more than the amount agreed in a global deal to cut output, the energy minister and industry sources said on Monday, as the sector felt the impact of a contaminated crude crisis that crippled exports.

Meanwhile, U.S. producers hit a monthly record of 12.16 million barrels per day (bpd) in April, data showed, though new U.S. shale oil production is expected to slip this year from last year, according to a survey of major forecasters.


Company: cnbc, Activity: cnbc, Date: 2019-07-02
Keywords: news, cnbc, companies, extend, worries, supply, counter, market, cut, ease, cuts, agreed, demand, extension, prices, oil, production, global, opec, crude


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