|Day's Range||55.62 - 56.36|
(Bloomberg) -- Oil snapped four days of losses after an American warship downed an Iranian drone near the Strait of Hormuz, stoking concerns crude flows from the Middle East may be disrupted.Futures rose as much as 1.9% in New York, paring its steepest weekly decline since the end of May. The U.S. “immediately destroyed” the drone that approached the USS Boxer, President Donald Trump said on Thursday at the White House. Iran could close the Strait of Hormuz but doesn’t want to do it because the waterway and the Persian Gulf are its lifeline, Foreign Minister Mohammad Javad Zarif said in an interview Wednesday.Oil is still down about 7% this week as concerns about global demand eclipse fears about a cut to Middle East crude flows. Trump on Tuesday reiterated that he could impose additional tariffs on Beijing, while China’s economic growth slowed to the weakest pace in almost three decades in the second quarter and American fuel stockpiles unexpectedly expanded.“The fresh reminder of tensions in the Middle East is propping crude back up,” said Vandana Hari, founder of Vanda Insights in Singapore. “I expect prices to recover only a fraction. The bearish grip on the market is too strong.”West Texas Intermediate for August delivery increased 55 cents, or 0.8%, to $55.75 a barrel on the New York Mercantile Exchange as of 7:41 a.m. in London after gaining as much as $1.06 earlier. The contract lost $1.48 to $55.30 on Thursday, the lowest close since June 19.Brent for September settlement rose 81 cents to $62.74 a barrel on the ICE Futures Europe Exchange. It fell 2.7% to $61.93 on Thursday and is also set for the biggest weekly loss since the end of May. The global benchmark crude traded at a premium of $6.84 to WTI for the same month.See also: U.S. Demands Iran Release Foreign Ship, Crew Seized This WeekThe Iranian drone was a threat to the ship and its crew, Trump said, as he called on other nations to protect their vessels as they go through the Strait. The confrontation comes as tensions between Washington and Tehran remain high over a spate of attacks on cargo ships, the downing of an American drone and the British seizure of a tanker carrying Iranian oil.Trump last week complained that China wasn’t living up to its promise of increased purchases of American agricultural goods. Disagreements on key initial demands from Trump and his counterpart Xi Jinping is raising doubts about whether the two nations will actually return to the negotiating table.To contact the reporter on this story: Sharon Cho in Singapore at email@example.comTo contact the editors responsible for this story: Serene Cheong at firstname.lastname@example.org, Ben Sharples, Andrew JanesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - Oil prices jumped on Friday in Asia after the U.S. reportedly shot down an Iranian drone in the Strait of Hormuz in what Trump described as "defensive action".
David Chen is the CEO of Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited (HKG:1938). This analysis aims...
(Bloomberg) -- The downing of an Iranian drone in the Strait of Hormuz wasn’t enough to lift oil prices, which slid to the lowest in almost a month amid pessimism about the global economy.Futures tumbled 2.6% on Thursday in New York, the fourth consecutive daily loss. Prices managed to climb about 60 cents after President Donald Trump said the U.S. had downed an Iranian drone in the Persian Gulf, but even that wasn’t enough to push the market up. Instead, crude joined a decline for tech and consumer stocks amid a spate of disappointing corporate earnings, alongside signs that Beijing and Washington are making little progress on a trade deal.Russian pipeline operator Transneft PJSC, meanwhile, said it resumed full flows from the country’s largest crude producer, Rosneft PJSC, after imposing restrictions due to contamination concerns.“The market is waking up to the fact that global oil demand is wilting and the possible prompt that could improve the situation is still remote,” said Judith Dwarkin, chief economist at Calgary-based consultant RS Energy. “There’s been no improvement in the U.S.-China trade dispute even though they say they are coming back to the table.”Oil has fallen about 8% since Monday, on track for its worst weekly performance since late May. The specter of a renewed U.S.-China conflict dented the demand outlook, while American fuel stockpiles jumped. That’s overshadowed worries that Iran may shut down the Strait of Hormuz, a key chokepoint for much of the world’s oil shipments.West Texas Intermediate for August delivery closed down $1.48 to $55.30 on the New York Mercantile Exchange, falling to the lowest since June 19. It was at $55.63 at 4:05 p.m., after Trump announced the drone incident.September Brent lost $1.73 to close at $61.93 a barrel on the ICE Futures Europe Exchange, before rebounding to $62.44.In an interview with Bloomberg Wednesday, Iran’s Foreign Minister Javad Zarif said the U.S. “shot itself in the foot” by pulling out of its nuclear accord with his nation. Crude briefly rallied on Thursday after Iran confirmed the seizure of an oil tanker in the Persian Gulf this week.Iran’s state-run Press TV news channel later aired footage of a tanker that disappeared from global satellite tracking systems four days ago. The ship was smuggling fuel out of the country, the Iranian Revolutionary Guard Corps said.(An earlier version of this story misspelled the name of RS Energy’s chief economist.)\--With assistance from Sharon Cho and James Thornhill.To contact the reporters on this story: Alex Nussbaum in New York at email@example.com;Alex Longley in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Carlos Caminada, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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The newest numbers showed that daily crude output remained above one million barrels for the 28th month, further confirming North Dakota as one of the hottest shale plays in the United States.
Investors have sold equities across the globe and headed back towards the safety of government bonds and Gold. After spending several weeks pricing in the impact of expected monetary easing by major central banks, bullish investors took a pause as fundamentals began to show signs of cracks.
(Bloomberg) -- China will tighten its grip on coal imports in the second half and keep full-year shipments at similar levels as 2018, according to an executive from the national industry group.The latest customs clearance halt at some mainland ports is because imports have exceeded quotas in the first six months, said Su Chuanrong, executive director-general of China National Coal Association. Overseas purchases are also set to weaken because domestic demand has faltered, Su said Thursday.The association’s outlook chimes with a chorus of predictions including from trading house Noble Resources International Pte that China’s coal imports are bound to slump in the second half. Inbound cargoes have gained 6% on-year in the first six months despite curbs in place. In the latest sign of a clampdown, the port of Caofeidian has decided to suspend clearance of coal for traders as regulators seek to cap annual imports. “Demand isn’t booming as it’s supposed to,” Su said in an interview. The current period tends to be a key consumption season as households and businesses crank up air conditioning use, but cooler temperatures have cut demand for cooling, she added.Thermal coal futures on the mainland have slipped 4% this month. Daiwa Capital Markets said earlier this week that recent heavy rainfalls in southern China could lead to higher hydropower output, which squeezes coal-fired generation, while lower temperatures may hurt power consumption as well.To contact Bloomberg News staff for this story: Feifei Shen in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Ramsey Al-Rikabi at email@example.com, Jasmine Ng, Aaron ClarkFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Zacks Analyst Blog Highlights: Callon Petroleum, Carrizo Oil & Gas, McDermott International and Occidental Petroleum
(Bloomberg) -- India may spin off units of Coal India Ltd., the world’s largest coal miner, into separate listed companies to boost competition and raise government funds, according to people with knowledge of the matter.The state-run company and the coal ministry are studying a proposal by the finance ministry’s Department of Investment & Public Asset Management to list four of Coal India’s biggest production units, as well as its exploration arm, said the people, who asked not to be named as the plan isn’t public. The development is in an early stage and it was unclear how long it may take, the people added.Prime Minister Narendra Modi’s government has sought to sell some state assets to raise funds, and these divestments will continue to remain a priority, Finance Minister Nirmala Sitharaman said July 5, setting a record target of raising 1.05 trillion rupees ($15 billion) in the current fiscal year. Spinning off Coal India subsidiaries would also lead to greater competition in the domestic coal market and improve corporate governance, the people said.A spokesman at Coal India didn’t respond to requests seeking comment, while press officials at the coal and finance ministries declined to comment.The four units -- Mahanadi Coalfields, South Eastern Coalfields, Northern Coalfields and Central Coalfields -- account for more than three-fourths of the company’s output, while constituting less than half of its workforce. The fifth unit would be Central Mine Planning & Design Institute.India’s state run coal giant has been unable to meet growing demand despite abundant resources. Coal India produced a record 607 million metric tons in the last fiscal year to March, falling short by 22% of a target proposed in 2017. The goal has been revised a few times since then, but output was still just below a revised target. Meanwhile, imports of the fuel surged to a record over the same period.Shares in the miner declined 1.2% to 230.00 rupees in Mumbai. Kolkata-based Coal India has a market cap of about $20.6 billion, with the government holding almost 71% of the company.India, the world’s second-largest coal consumer after China, depends on Coal India for about 83% of the domestic production. The miner has consistently fallen short of production targets, while an overworked railway network has hampered transport of the fuel.The government’s top planning body, NITI Aayog, proposed in 2017 that Coal India be broken up so its units can compete against each other. It was dismissed at the time by Coal Minister Piyush Goyal, who said the plan doesn’t reflect government policy.(Updates shares in seventh paragraph and adds chart.)To contact the reporters on this story: Debjit Chakraborty in New Delhi at firstname.lastname@example.org;Rajesh Kumar Singh in New Delhi at email@example.com;Siddhartha Singh in New Delhi at firstname.lastname@example.orgTo contact the editors responsible for this story: Ramsey Al-Rikabi at email@example.com, Unni Krishnan, Alpana SarmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shale producer Callon Petroleum (CPE) agreed to buy smaller E&P player Carrizo Oil & Gas (CRZO) for $3.2 billion, while McDermott International (MDR) clinched twin contracts from Saudi Aramco.
The upbeat results come against the backdrop of Alberta government's cap on output in January that boosted low crude prices, but made oil shipments by rail less profitable for Canadian producers. Rail shipments have, however, recently recovered with some producers choosing rail again to avoid pipeline congestion. Crude-by-rail volumes jumped by about a quarter to 25,000 carloads in the second quarter, while total carloads, rail cars carrying freight, rose 6%.
It hasn't been the best quarter for RAK Petroleum plc (OB:RAKP) shareholders, since the share price has fallen 20% in...
NEM’s XEM takes a hit early on but could find support from the broader market. A move through to $0.065 levels will be key.
(Bloomberg) -- If you’re looking for signs of China’s slowdown, you won’t find much in the data for output of the commodities needed to power and build the world’s second-biggest economy.Production of a swathe of materials -- from crude steel to coal and aluminum -- reached record levels in June, contributing to stronger-than-expected industrial output even as the wider economy expanded at its slowest pace since the early 1990’s. While each market has its own dynamics, the burst of heavy-industry activity supports the idea that policy action is stabilizing growth and boosting expectations for the second half of the year.“It reflects confidence from the commodity producers,” Helen Lau, analyst at Argonaut Securities Asia Ltd., said by phone from Hong Kong. “Even though June is the start of a weak season, cyclically speaking, they still want to produce because they basically expect that going forward, things will be back on track.”The strong output data slots into signs of tentative stabilization in Monday’s economic figures, with infrastructure spending and manufacturing investment both also picking up. Better-than-expected retail sales may point to an improvement in the property and auto sectors -- both a vital source of commodities demand.Highlights from NBS output data:Crude steel production rose 10% from a year earlier and average daily production reached a record. Run-rates were equivalent to more than a billion tons a year. Coal output rose 10% from a year earlier.The country’s oil refineries and aluminum smelters were running at record rates, measured by average daily output.Production of crude oil was at its highest in two years.To contact Bloomberg News staff for this story: Martin Ritchie in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Phoebe Sedgman at email@example.com, Keith GosmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - Oil prices fell on Monday in Asia after the International Energy Agency (IEA) said it expects the return of an oversupplied market next year.
The Strait of Hormuz, where the BP-operated oil tanker was "harassed," is touted as the most important global passageway for transporting crude.
(Bloomberg) -- Oil capped its best week since mid-June as Tropical Storm Barry gained strength, approaching refineries in Louisiana and leaving deserted offshore platforms on its path.Futures in New York gained 4.7% for the week after prices held above $60 a barrel for a third day on Friday. Forecast to make landfall as a hurricane early Saturday, Barry has already curbed about half of U.S. Gulf of Mexico production.Coupled with rising tensions between the U.K. and Iran, as well as a steep drop in American crude stockpiles, the storm helped offset concerns over weakening demand.“After quite a few weeks of very bearish petroleum numbers the last two weeks have actually been supportive,” said Kyle Cooper, a consultant at Ion Energy Group in Houston. “It’s a bullish backdrop. I don’t think we’re going to run away here, but the mid-$50s to low $60s seems like a reasonable level.”Still, the longer-term outlook looks less promising. The Organization of Petroleum Exporting Countries warned Thursday of a glut in 2020 as U.S. shale production surges. The International Energy Agency said Friday there had been a surprise pile-up of inventories in the first half of this year, and that OPEC may need to cut output to the lowest in 17 years to prevent another overhang.The uncertainties have slowed the market’s momentum in recent days. While oil has traded higher in six of the last seven sessions, it’s also been stuck within a $1 range the past two days, the first time trading has been that narrow since April. An index of price volatility was at its lowest since May 22.West Texas Intermediate crude for August delivery closed Friday 1 cent higher at $60.21 a barrel on the New York Mercantile Exchange. Brent for September settlement rose 20 cents, or 0.3%, to $66.72 a barrel on the ICE Futures Europe Exchange.Barry may drop as much as 25 inches (64 centimeters) of rain in some places, according to an advisory from the U.S. National Hurricane Center. Gulf of Mexico operators have shut-in about 1 million barrels a day of oil production because of the storm, the Bureau of Safety and Environmental Enforcement said in a notice.Meanwhile, Britain raised the threat level to the highest possible for ships operating in the Persian Gulf as tensions escalate in a region accounting for a third of seaborne petroleum trade. The U.K. government designated the region a level-3 risk on Tuesday, a day before British warship HMS Montrose had to stop Iranian vessels from impeding a BP Plc oil tanker as it exited the region, according to a person with knowledge of the matter.\--With assistance from James Thornhill and Tsuyoshi Inajima.To contact the reporters on this story: Alex Nussbaum in New York at firstname.lastname@example.org;Grant Smith in London at email@example.comTo contact the editors responsible for this story: David Marino at firstname.lastname@example.org, Carlos Caminada, Joe CarrollFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Slowing global economic growth is beginning to weigh on oil markets, with the IEA warning that crude supply has exceeded demand in the first half of the year