Qatar will pull out of OPEC amid tension with Saudi Arabia

DUBAI, United Arab Emirates — The tiny, energy-rich Arab nation of Qatar announced on Monday it would withdraw from OPEC, mixing its aspirations to increase production outside of the cartel’s constraints with the politics of slighting the Saudi-dominated group amid the kingdom’s boycott of Doha.

The surprise announcement from Qatar’s minister of state for energy affairs, Saad Sherida al-Kaabi, again throws into question the role of the cartel after needing non-members to push through a production cut in 2016 after prices crashed below $30 a barrel.

It also marks the first time a Mideast nation has left the cartel since its founding in 1960.

In a statement, al-Kaabi said Qatar, the world’s largest exporter of liquified natural gas, planned to increase its exports from 77 million tons of gas per year to 110 million tons. He also said Qatar wants to raise its oil production from 4.8 million barrels of oil equivalent a day to 6.5 million barrels.

“In light of such efforts and plans, and in our pursuit to strengthen Qatar’s position as a reliable and trustworthy energy supplier across the globe, we had to take steps to review Qatar’s role and contributions on the international energy scene,” al-Kaabi said in a statement.

There was no immediate comment from Vienna-based OPEC, which is to meet this month and discuss possible production cuts.

Qatar, a country of 2.6 million people where citizens make up over 10 percent of the population, discovered the offshore North Field in 1971, the same year it became independent.

It took years for engineers to discover the field’s vast reserves, which shot Qatar to No. 3 in world rankings, behind Russia and Iran, with which it shares the North Field. It’s also made the country fantastically wealthy, sparking its successful bid for the 2022 FIFA World Cup.

Qatar’s wealth also has seen it take on a larger importance in international politics. Its political stances have drawn the ire of its neighbors, particularly Saudi Arabia, OPEC’s largest exporter.

In June 2017, Bahrain, Egypt, Saudi Arabia and the United Arab Emirates began a boycott of Qatar in a political dispute that continues to this day. /atm

source: business.inquirer.net

US stocks end at records, lead global equities higher

NEW YORK, United States — All three major US equity indices rose to fresh records Wednesday on solid earnings and higher oil prices, concluding a sunny session for global equities.

The Dow, S&P 500 and Nasdaq all ended at new peaks as investors shrugged off worries about Washington, where President Donald Trump’s agenda has languished amid opposition to his health care reform proposal.

Bourses in Europe were higher ahead of Thursday’s European Central Bank meeting. Tokyo, Hong Kong and Shanghai also all rose.

Earnings growth among companies in the S&P 500 has thus far been “much better” than expected, said Art Hogan, chief market strategist at Wunderlich Securities.

“That is helping the stock market and is the focus this week,” Hogan said.

Other elements that helped boost stocks included better-than-expected housing data and a bullish US oil inventory report that supported oil prices and boosted shares of petroleum-linked companies.

Maris Ogg, president of Tower Bridge Advisors, said sentiment has also been boosted by the improved outlook in Europe following the election of French president Emmanuel Macron as well as the recognition that Trump is a business-friendly president, even if his agenda looks uncertain.

“The market is recognizing we are in a pretty good environment and we are at the beginning of a cycle that could on for quite a while,” Ogg said.

Among US companies reporting results, Morgan Stanley surged 3.3 percent, but IBM and United Continental fell 4.2 percent and 5.3 percent after investors found fault with results.

Euro pulls back

The euro surged Tuesday to a near 15-month pinnacle at $1.1583, but pulled back to $1.1513 on the eve of the ECB.

ECB chief Mario Draghi has expressed greater confidence in the economy in recent weeks and analysts are looking for him on Thursday to continue to prepare the ground for an eventual shift away from easy-money policy later this year through a tapering of the bond purchases.

Still, Kathy Lien, managing director of BK Asset Management, said ECB officials have been unnerved by the rise of the euro of late and warned the central bank will want to avoid giving the currency a further boost.

“It is in their best interest to halt the one-way move, ease the euro off its highs by repeating that inflation is not on a self-sustainable path, and then gradually set expectations for taper from a lower base,” she said.

“That way… they could take the steam out of the rally.” CBB

source: business.inquirer.net

Global stocks mostly fall on oil price slump

NEW YORK, United States — Global stocks mostly tumbled on Wednesday, with the energy sector taking a beating as worries about excess supply and ineffectual Opec policy hit oil prices.

Crude prices slid further after diving more than two percent on Tuesday on increasing fears that moves by Opec won’t be sufficient to prevent another supply glut due in part to rising shale output in the United States.

“Cheap oil is taking its toll on the global equity markets,” noted analyst Ipek Ozkardeskaya at trading firm London Capital Group.

Equity markets fell in Frankfurt, London, Paris and Tokyo. Leading US indices were mostly down, with the Dow and S&P 500 bruised by the oil rout, but the Nasdaq finished higher.

Aside from the drag of petroleum equities, whose profits are directly hit by lower commodity prices, the pullback in oil prices is a source of unease for the broader market because of worries that inadequate demand signifies slowing economic activity.

“The last two trading sessions have been a reminder of late 2015 and the beginning of 2016, when the collapse in the oil price sparked fears about global growth,” said analyst David Madden at CMC Markets.

“Investors are worried a depressed oil price could bring about a period of prolonged low inflation, which would have negative implications for growth.”

Worries about Opec

US oil prices ended at their lowest level since August on growing worries that Middle Eastern members of the Organization of the Petroleum Exporting Countries “will not be able to cooperate and work together,” said John Kilduff of Again Capital.

The pullback comes amid rising tensions between Opec kingpin Saudi Arabia and fellow members Iran and Qatar.

Contributing to the weakness was a mixed US petroleum supply report that showed lower overall commercial inventories, but higher US production and “lackluster” gasoline demand, said Kilduff.

Greg Priddy, an analyst at risk consultancy Eurasia Group, said the cartel is also stuck in a difficult cycle in which higher prices create incentives for producers in the US and other markets to raise production, putting renewed pressure on prices.

Petroleum-linked equities fell across global bourses, with France’s Total, Japan’s Inpex and US company Chevron all lower.

The London and Frankfurt stock markets ended the day down 0.3 percent, while Paris shed 0.4 percent in value.

But the tech-rich Nasdaq was a standout, finishing up a solid 0.7 percent after pharmaceutical and biotech shares advanced on expectations that President Donald Trump’s moves to crack down on runaway drug prices will not be as aggressive as feared.

Shanghai also bucked the trend to end up 0.5 percent after the US-based MSCI finally approved Chinese mainland-listed stocks, or A-shares, for inclusion in its emerging markets index. CBB

source: business.inquirer.net

Saudi Arabia loses Fitch rating over budget concerns

PARIS, France — Saudi Arabia on Wednesday lost its high-quality credit rating from the Fitch agency, which lowered the kingdom a notch because of worsening public finances as the oil price wobbles.

Dropping its notation from AA- to A+, Fitch said it was doubtful whether Saudi Arabia could implement its reform program after a “significantly wider than expected fiscal deficit in 2016″.

Opec kingpin Saudi Arabia in December projected another budget deficit for this year, after already reporting a shortfall for 2016 in the face of lower oil prices.

It was the first budget since the kingdom, aiming for a balanced budget by 2020, announced a wide-ranging plan to wean the economy off its oil dependency.

Fitch put last year’s budget deficit at 17.3 percent of gross domestic product (GDP).

For 2017, Saudi hopes to cut the deficit to 7.7 percent of GDP, Fitch noted, but the agency said its own projections were for 9.2 percent.

A period of sustained rises in the price of oil, of which Saudi Arabia is the world’s biggest exporter, could prompt Fitch to revise its rating upwards again, it said.

But if Saudi’s budgetary situation worsened quickly, it could suffer another downgrade, it warned.

For now, the outlook is stable, the agency said. CBB

source: business.inquirer.net

US stocks post biggest drop of 2017 on doubts about Trump agenda

NEW YORK, United States — Wall Street stocks suffered their worst declines of the year Tuesday as doubts increased about President Donald Trump’s ability to advance his agenda in Washington.

All three major US indices fell sharply, with the Nasdaq tumbling the most with 1.8 percent decline, two days ahead of a key congressional vote on health care policy.

European equity markets also dropped, along with Japan’s Nikkei. Analysts said sinking oil prices also weighed on stocks.

Trump traveled to Capitol Hill to try to coax support from fellow Republicans for his health care bill, warning the party could lose its majority if it fails to repeal and replace Obamacare in Thursday’s vote.

Analysts fear a setback on health care will dim momentum for the rest of Trump’s agenda, including highly-anticipated tax cuts and deregulation.

“The markets have reversed” because of growing concern about possible opposition to Trump’s reforms within Republican party, said Gregori Volokhine of Meeschaert Financial Services.

Banking shares were especially weak, with Bank of America dropping 5.8 percent and Goldman Sachs losing 3.8 percent. The sector had been a highflyer after the election in anticipation of regulatory rollbacks promised by Trump.

“There seems to be doubt creeping in investors’ minds whether or not the deregulation that Trump talked about will be put into effect, as well as tax reform and lower tax rates,” said Bill Lynch, director of investment at Hinsdale Associates.

Elsewhere, London finished down 0.7 percent after official data showed British 12-month inflation soared to 2.3 percent in February, the highest level since 2013.

The news sent sterling flying higher on expectations of rising interest rates, putting pressure on FTSE companies.

The euro strengthened after a strong debate performance by French presidential candidate Emmanuel Macron lifted hopes the centrist could hold off far-right leader Marine Le Pen in the coming elections.

Paris equities slipped 0.2 percent, while the German DAX lost 0.8 percent.

Tokyo fell 0.3 percent as a rising yen hit export-oriented stocks.

US oil prices finished at their lowest price of the year at $47.34 per barrel, down 88 cents, on worries about rising US oil production. CBB

source: business.inquirer.net

Global stock markets mixed as oil price rally fizzles

SEOUL, South Korea — Global stock markets were mixed on Wednesday as investors awaited more policy details from U.S. president-elect Donald Trump. Oil prices retreated, snapping an overnight rally.

KEEPING SCORE: European markets started on a weaker note with Britain’s FTSE 100 down 0.1 percent to 6,783.36. Germany’s DAX lost 0.2 percent to 10,710.68 while France’s CAC 40 was nearly flat at 4,535.83. Futures augured a tepid start on Wall Street with Dow futures down 0.1 percent and S&P futures also dipping 0.1 percent.

ASIA’S DAY: Asian markets finished mostly higher. Japan’s Nikkei jumped 1.1 percent to 17,862.21 and South Korea’s Kospi gained 0.6 percent to 1,979.65. Hong Kong’s Hang Seng index closed 0.2 percent lower at 22,280.53, while China’s Shanghai Composite Index edged 0.1 percent lower to 3,205.06. Australia’s S&P/ASX was nearly unchanged at 5,327.70, while benchmarks in Taiwan and Southeast Asia were mixed.

ANALYST’S TAKE: “International markets showed signs of pausing to wait on evidence of policy specifics before extending moves in the direction of the ‘Trump themes’ of fiscal stimulus and inflation,” Ric Spooner, chief market analyst at CMC Markets, said in a daily commentary.

OIL: Oil prices rallied overnight on hopes that OPEC members would agree to lower output when they meet later this month. They wavered between gains and losses before turning lower again. Benchmark U.S. crude fell 41 cents to $45.40 per barrel in electronic trading on the New York Mercantile Exchange. The contract closed up $2.49, or 5.7 percent, to $45.81 per barrel on Tuesday. Brent crude, used to price international oils, lost 28 cents to $46.67 a barrel in London.

CURRENCIES: The dollar strengthened to 109.46 yen from 108.94 yen while the euro fell slightly to $1.0724 from $1.0731. TVJ

source: business.inquirer.net

Asian markets ease as oil prices struggle

HONG KONG, China—Most Asian markets dipped Thursday, with energy firms struggling after another sell-off in oil fuelled by concerns about a planned output cut.

Crude prices are slumbering at three-month lows after OPEC member Iraq and non-member Russia suggested this week they would not take part in any limitations, despite a painful global supply glut.

Their comments have raised questions about the viability of a last month’s agreement at oil cartel OPEC to reduce output, which sent prices soaring.

Both main contracts have tumbled more than three percent this week and news that US stockpiles had fallen more than expected last week was unable to provide any support.

“Iraqi demands to join the list of countries exempted from quotas have simply added to the uncertainty” that an output cut can be implemented, Research firm Capital Economics said in a commentary.

“We have long been sceptical of the chances of a game-changing deal and continue to forecast that both Brent and WTI will end the year back at around $45 per barrel.”

Regional energy firms extended recent losses. Hong Kong-listed CNOOC sank more than three percent, with traders also selling on the back of a weak earnings report.

PetroChina lost 1.5 percent in Hong Kong, while Sydney-listed Woodside Petroleum was 1.5 percent off and Santos lost one percent.

Among regional markets Tokyo ended the morning down 0.3 percent, Hong Kong shed 0.9 percent—extending a one percent loss Wednesday—and Shanghai slipped 0.2 percent.

Seoul, however, added 0.2 percent, boosted by market heavyweight Samsung Electronics’ two percent surge.

The firm confirmed a 30 percent plunge in third-quarter operating profit linked to its Galaxy Note 7 crisis but later announced its heir apparent JY Lee had joined the board, putting him a step towards control of the family-run conglomerate.

Lee Chaiwon, chief investment officer at Korea Value Asset Management said JY’s bigger role should provide a much-needed boost to the under-fire company, saying it “will become more market-friendly and will “quicken its restructuring process”.

The dollar rose against the pound, euro and other high-yielding currencies as a preliminary survey showing the key US services sector expanded in October reinforced expectations the Federal Reserve will lift interest rates before the end of the year.

Key figures around 0230 GMT

Tokyo – Nikkei 225: DOWN 0.3 percent at 17,341.23 (break)

Hong Kong – Hang Seng: DOWN 0.9 percent at 23,105.12

Shanghai – Composite: DOWN 0.2 percent at 3109.37

Euro/dollar: DOWN to $1.0897 from $1.0907 Wednesday

Dollar/yen: DOWN to 104.44 yen from 104.51 yen

Pound/dollar: DOWN to $1.2214 from $1.2242

Euro/pound: UP to 89.19 pence from 89.09 pence

Oil – West Texas Intermediate: Flat at $49.18 a barrel

Oil – Brent North Sea: DOWN four cents at $49.94

New York – Dow: UP 0.2 percent to 18,199.33 (close)

London – FTSE 100: DOWN 0.9 percent at 6,958.09 (close)

source: business.inquirer.net

Oil prices down as OPEC meeting awaited

NEW YORK, United States—Oil prices fell slightly on world markets on Tuesday, with investors taking profits after consecutive rises in recent days.

A barrel of West Texas Intermediate for September delivery fell 25 cents to $42.77 on the New York Mercantile Exchange, after having risen nearly a dollar and a half the day before.

In London, a barrel of North Sea Brent for October delivery fell 41 cents to $44.98 on the Intercontinental Exchange.

The slight declines followed Monday’s announcement of an unscheduled meeting next month by the Organization of Petroleum Exporting Countries, fueling speculation of measures to stabilize prices.

Russian Energy Minister Alexander Novak reportedly said his country would be willing to discuss a freeze if OPEC raises the matter.

After a bearish July, prices rebounded in recent days, following stronger-than-expected US hiring figures and a general reevaluation of the likelihood of a US interest rate hike.

“It’s quiet today. I think you may see a bit of profit taking,” said John Kilduff of Again Capital.

“This is a short-covering rally with record short interest in crude oil,” Kilduff said, adding that rumor of possible collaboration between Russia and OPEC was also influencing market decisions.

source: business.inquirer.net

Oil prices up as global markets recover post-Brexit

SINGAPORE, Singapore—Oil prices rose in Asia on Friday as traders welcomed assurances from central bank around the world that they were ready to step in to prevent a global rout following Britain’s vote to leave the European Union.

After the initial shock of last Thursday’s referendum sparked a freefall, this week has seen a broad recovery across all asset classes.

South Korea has promised of $17 billion in stimulus and speculation swirls that Japan is planning to further loosen monetary policy while the chances of the US raising interest rates have all but evaporated.

On Thursday Bank of England boss Mark Carney hinted that policymakers were contemplating a cut in interest rates.

The news sent European and US shares soaring, and Asian traders picked up the baton Friday to press more gains.

The optimism filtered through to the oil market and at about 0315 GMT, US benchmark West Texas Intermediate for August delivery was up 34 cents, or 0.70 percent, at $48.67.

Brent for September, a new contract, was up 39 cents, or 0.78 percent, at $50.10.

“Investors seemed to be finding reasons to be optimistic about the post-Brexit rebound,” said IG Markets analyst Bernard Aw.

CMC Markets analyst Margaret Yang said equity markets were on the rise partly because “the Bank of England hinted that more monetary stimulus is on the roadmap to battle the post-Brexit economic fallout.”

Oil market watchers said last week’s decline in US commercial inventories is also helping boost prices, but a sustained price rise will only come if producers make meaningful cuts in output.

The drop in US crude stockpiles “is certainly supportive” of prices, David Lennox, a resource analyst at Fat Prophets in Sydney, told Bloomberg News.

“But the market is waiting for real production cuts, and until that happens any strong rally in the oil price is just not going to be sustainable,” he said.

source: business.inquirer.net

Oil prices up in Asia but tremors over Brexit remain

SINGAPORE — World oil prices rebounded in Asia Tuesday on bargain hunting but tremors from Britain’s shock vote last week to leave the European Union continue to weigh on sentiment.

Financial markets are still reeling from Brexit’s fallout as investors sell riskier assets and flock to safe bets amid global economic uncertainty.

Asian stock markets resumed their losses early Tuesday, extending another sharp sell-off in Europe and New York.

At around 0330 GMT, US benchmark West Texas Intermediate for delivery in August was up 64 cents, or 1.38 percent, to $46.97 and Brent crude for August gained 60 cents, or 1.27 percent, to $47.76 a barrel.

Both contracts closed lower on Monday.

“The turmoil in the financial markets, triggered by the UK referendum results, is keeping the pressure on oil prices, which look set to clock a monthly loss in June,” said IG Markets Singapore analyst Bernard Aw.

“The lack of guidance from the UK government and the prospects of a leadership struggle continued to dampen investors’ appetite, and this should persist through the week,” he told AFP.

British Prime Minister David Cameron quit in the wake of the vote and the race is on to find his successor as party leader who would take over as prime minister.

Former London mayor Boris Johnson and Interior Minister Theresa May are considered to be the front-runners in the leadership race.

Policy makers in Europe are trying to calm global markets but analysts said uncertainty remains.

“Apart from economic considerations, concerns are that the Brexit vote could encourage other EU countries to seek their own referendums, including Netherlands, France, Spain and Greece,” DBS Bank said in a note.

It said “this could potentially revisit the EU breakup fears that plagued the region” a few years back.

A strengthening US currency — considered a safe investment in times of turmoil — will likely continue to dampen demand for dollar-priced oil which would become more expensive for holders of weaker units, Aw added.

source: business.inquirer.net

Global shares mixed after Wall Street slump, oil price rally

KUALA LUMPUR, Malaysia — European stocks were mostly higher Thursday while Asian shares were mixed after a weak session on Wall Street. Tokyo shares rebounded after a weak start as the yen weakened against the U.S. dollar.

KEEPING SCORE: France’s CAC 40 rose 0.2 percent at 4,325.09 and Germany’s DAX gained 0.1 percent to 9,986.52. Britain’s FTSE 100 was nearly flat at 6,158.38. Dow and S&P 500 futures rose 0.4, suggesting a positive start for Thursday trading.

BRITISH FACTOR: A raft of data is due out later Thursday

and traders are watching for further clues on monetary policy from a speech by Bank of England Governor Mark Carney, especially in light of Britain’s referendum on continued EU membership due next month.

TOYOTA PROFIT: Shares in Toyota Motor Corp. fell 1.4 percent after a 6.1 percent drop overnight in New York. On Wednesday, the company projected a 35 percent plunge in profit for the fiscal year through March 2017 as the perks of a favorable exchange rate fade, and it reported a 4 percent drop in profit for January-March on-year. Other exporters can expect similar woes thanks to the yen’s recent gains against the U.S. dollar.

OIL PRICES: Already trading at its highest price in six months, benchmark U.S. crude rose overnight after the government reported a surprise decline of 3.4 million barrels in supplies for last week and a 6 percent reduction in U.S. oil output. U.S. oil gained 1 cent to $46.24 a barrel in electronic trading on the New York Mercantile Exchange. It jumped $1.57, or 3.5 percent, to $46.23 a barrel on Wednesday. Brent crude, the international benchmark, gained 5 cents to $47.65 a barrel. It had jumped $2.08, or 4.6 percent, to $47.60 a barrel in London.

ANALYST VIEWPOINT: “Commodity stocks are among the few positive movers today, following a major oil rally on the back of U.S. evidence consumption is eating into the historically high stock piles of crude,” Michael McCarthy of CMC Markets said in a commentary. “This better demand picture combined with a slightly weaker USD makes energy and materials the sectors du jour.”

ASIA’s DAY: Japan’s Nikkei 225 stock index rose 0.4 percent to 16,646.34, while the Hang Seng index of Hong Kong dropped 0.7 percent to 19,915.46. South Korea’s Kospi lost 0.1 percent to 1,977.49 and Australia’s S&P/ASX 200 fell 0.2 percent to 5,359.30. Taiwan fell but most benchmarks in Southeast Asia rose.

CURRENCIES: The dollar rose to 108.99 yen from 108.40 in the previous session. The euro slipped to $1.1413 from $1.1424. The yen-dollar rate has “slipped back down to 108 levels, as a short-squeeze in the early week abated with no more official talk of intervention yesterday, while markets are also doubting if Japan would intervene in advance of the G7 summit,” Mizuho Bank Ltd. (Singapore branch) said in a commentary. TVJ

source: business.inquirer.net

Asian markets tumble as oil collapses again

HONG KONG—The slump in oil dominated the mood on Asian markets Wednesday after falling back below $30 a barrel, hammering energy firms once again and sending stocks deeper into the red.

With the euphoria of Friday’s Bank of Japan stimulus but a distant memory, Tokyo led the regional losses followed by Hong Kong, where insurance giant AIA lost almost a 10th of its value on fears China would tighten insurance rules.

The plunge in oil prices to 12-year lows has sent shudders through world markets, helping wipe trillions of dollars off valuations, even leading to the word “recession” raising its head.

Crude resumed its downward trend this week, jettisoning most of the gains seen in a four-day rally last week fuelled by hopes for OPEC-Russian talks on output cuts.

US benchmark West Texas Intermediate crashed more than 11 percent on Monday and Tuesday to fall back through the $30 level for the first time since January 21. Brent lost almost six percent in the same period.

And on Wednesday the losses piled up ahead of a US report that analysts warned could see a further increase in stockpiles. WTI lost one percent and Brent 0.9 percent in early Asian trade.

Oil prices have crumbled about 75 percent since mid-2014, hit by a perfect storm of weak demand, oversupply, overproduction, a slowing global economy and a strong dollar.

After already taking a hit on Tuesday, regional energy stocks were buffeted again on Wednesday.

In Hong Kong, CNOOC shed 5.7 percent and PetroChina dived five percent while Kunlun Energy sank 5.6 percent.

Sydney-listed Santos lost 7.5 percent and mining giant BHP Billiton lost 4.2 percent while Woodside Petroleum fell 4.3 percent.

Inpex gave up three percent in Tokyo, where JX Holdings was 2.8 percent off.

‘Talk of recession louder’

The losses followed other big guns in New York and Europe. BP lost 8.7 percent in London after it suffered a loss of $6.48 billion last year and announced another 3,000 job cuts. Chief executive Bob Dudley warned: “We expect 2016 to be tough.”

BP’s American rival, ExxonMobil, managed to stay profitable, but reported a 58 percent drop in fourth-quarter earnings and announced plans to slash its capital budget and suspend its share repurchase programme.

“The underlying fundamentals are deteriorating and the talk of recession is getting louder,” Chris Weston, chief market strategist at in Melbourne at IG Ltd., told Bloomberg News.

“When you see BP coming out with disastrous results and when you see Exxon cutting back on expenditures again, you realise the implication weak oil has on economies.”

Tokyo’s Nikkei index sank 3.1 percent by lunch, while Hong Kong was almost three percent off, Sydney lost 2.1 percent and Seoul shed 1.1 percent. Shanghai slipped one percent.

There were also sharp losses across other parts of Asia, with Singapore, Manila and Kuala Lumpur worst hit.

In Hong Kong, insurance giant AIA lost 8.8 percent in the morning following a Bloomberg News report that China would clamp down on the purchase of overseas cover. AIA’s US shares lost more than five percent.

Beijing wants to close a loophole in its capital controls aimed at stemming the outflow of its depreciating yuan currency, as the economy logs its slowest growth in 25 years.

Manulife, another Hong Kong-listed insurer, shed 5.5 percent.

source: business.inquirer.net

Equities pulled lower by oil, China concerns

NEW YORK - Global equities were lower on Monday, pressured by another downdraft in oil prices and worries over growth in China's economy, while the holiday season kept trading volumes muted.

Prices of both Brent and U.S. crude dropped more than 3 percent , reversing a brief rebound and dragging U.S. energy shares down 1.8 percent as the worst performing of the major S&P sectors.

Crude again moved within sight of an 11-year low. Brent settled at $36.62 and U.S. crude settled at $36.81 as last week's short-covering dried up and players worried that prices had more room to swoon.

"You have energy and tax-loss harvesting moving markets back and forth in these last few weeks," said Tim Courtney, Chief Investment Officer at Exencial Wealth Advisors, which oversees $1.4 billion in assets.

In contrast to oil, U.S. natural gas prices settled up 10 percent at $2.228 per million British thermal units as forecasts for colder temperatures led to bets that long-delayed winter weather was finally arriving.

The Dow Jones industrial average fell 23.9 points, or 0.14 percent, to 17,528.27, the S&P 500 lost 4.45 points, or 0.22 percent, to 2,056.54 and the Nasdaq Composite dropped 7.51 points, or 0.15 percent, to 5,040.99.

A weak batch of industrial profits raised concerns about China's economy and sent Chinese stocks lower by almost 3 percent, their biggest drop in a month.

Profits at Chinese industrial companies in November fell 1.4 percent from a year earlier, the sixth consecutive month of decline and another sign that the world's chief engine of growth for the past decade is sputtering.

MSCI's broadest index of Asia-Pacific shares outside Japan gave up early modest gains to fall 0.53, putting it on track for a 12-percent loss this year.

With trading light in the United States and Europe between Christmas and the upcoming New Year's holidays, as well as a holiday on Monday in the United Kingdom, markets could see exaggerated moves this week.

MSCI's all-country world index lost 0.22 percent, while the pan-European FTSEurofirst 300 index closed down 0.54 percent.

In Europe, the drop in oil prices put pressure on energy stocks such as Repsol and Total.

Yields on benchmark 10-year Treasury notes inched down to 2.2322 percent, up 3/32 in price.

The dollar edged lower against a basket of major currencies, off 0.03 percent at 97.951 as bullish bets on the currency this year on a U.S. Federal Reserve rate hike met year-end profit-taking.

But the drop in oil prices hurt currencies linked to the commodity, such as the Australian and Canadian dollars.

The Australian dollar fell 0.1 percent to $0.7248 while its Canadian counterpart fell 0.6 percent to $1.3902, heading back towards this month's 11-year lows.

Spot gold was down 0.7 percent at $1,068.19 an ounce and was on track for its sixth straight quarterly decline, its longest run of quarterly losses since the mid-1970s. —Reuters

Asian stocks subdued as oil resumes fall

TOKYO - Asian stocks were subdued on Tuesday, with Japanese and South Korean equities slipping, after crude oil prices resumed their slide and cooled investor sentiment.

MSCI's broadest index of Asia-Pacific shares outside Japan were effectively unchanged, and looked set for a loss of around 12 percent for the year.

Japan's Nikkei lost 0.3 percent and South Korea's KOSPI fell 0.4 percent. Australian stocks bucked the trend and rose 0.4 percent.

On Monday, prices of both Brent and US crude dropped more than 3 percent , reversing a brief rebound and dragging US energy shares down 1.8 percent as the worst performing of the major S&P sectors.

Brent was at $36.60 a barrel, near an 11-year low of $35.98 struck last week.

The Dow dipped 0.1 percent and the S&P 500 lost 0.2 percent overnight after trading resumed following the Christmas break, but activity is expected to remain thin until after the long New Year holiday weekend.

In currencies, the dollar edged down 0.1 percent to 120.33 yen, within striking distance of a two-month low of 120.05 struck late last week.

The greenback has been sapped by profit taking after the Federal Reserve this month hiked interest rates for the first time in nine years. The currency market will wait for the Fed to send fresh signals about when the second rate hike could take place in 2016 for potential dollar support.

The euro nudged up 0.1 percent to $1.0977.

The dollar fared better against its Canadian counterpart, which was weighed down as crude oil prices weakened again.

The Canadian dollar stood little changed at C$1.3894 to the greenback after losing 0.7 percent overnight. The loonie fell to an 11-year low of C$1.4003 against the dollar earlier this month.

"We are looking for USD/CAD to break 1.40 and head towards 1.45 in the first half of 2016. The oil industry is experiencing its biggest downturn since the 1990s and prices could fall another $10 a barrel before bottoming," wrote Kathy Lien, managing director at BK Asset Management.

The Australian dollar gained 0.2 percent to $0.7262 while the New Zealand dollar rose 0.2 percent to $0.6859. Both currencies were confined to a narrow range ahead of the year's end. —Reuters

Crude oil falls after US growth figures disappoint

TOKYO – Crude futures dropped in early Asian trading on Friday after the release of a report showing that US economic growth had slowed sharply, reinforcing concerns about sluggish demand in a world awash with oil.

US economic growth braked sharply in the third quarter as businesses cut back on restocking warehouses to work off an inventory glut, data showed.

Both of the main crude benchmarks are on track to post their first weekly gains in three weeks, but with oil still being added to inventories, prices are likely to be range-bound in the coming weeks, traders and analysts said.

US crude was down 24 cents at $45.82 a barrel at 0140 GMT, after rising 12 cents in the previous session. The benchmark is on track to post a gain of 2.7 percent this week.

Brent crude fell 11 cents to $48.69 a barrel after ending 20 cents lower on Thursday and is heading for an increase of 1.5 percent this week.

The sluggish US growth figures and weak home sales numbers have tempered the market's positive reaction to government figures earlier in the week showing oil stockpiles last week had increased by 3.4 million barrels, which was below the estimate from an industry group.

That had sent prices sharply higher with US crude rallying nearly $3 a barrel. – Reuters

Oil prices extend gains in Asian trade

Singapore – Oil prices climbed in Asia Monday boosted by a weaker dollar and expectations a rise in demand will ease a global supply glut, while investors await the release of key Chinese economic data this week.

Both main crude contracts have rallied since hitting six-year lows in late August, with last week seeing healthy rallies in line with global equities on waning expectations the US Federal Reserve will hike borrowing costs this year, pushing the dollar lower.

A softer dollar makes dollar-priced oil cheaper, spurring demand.

Comments by OPEC secretary general Abdullah el-Badri at the weekend that the cartel sees a "more balanced" oil market next year also provided support.

In afternoon Asian trade, US benchmark West Texas Intermediate for November delivery rose 0.89 percent to $50.07 and Brent crude for November added 0.91 percent to $53.13 a barrel.

Attention is on the release of Chinese trade and inflation data, which will give a fresh idea about the state of the world's biggest energy consumer. Confidence was given a lift at the start of the month by a report indicating the country's key manufacturing sector saw a slight improvement in September.

The news provided some cheer after a string of figures highlighting a sharp slowdown in Chinese growth. Fears about the Asian economic giant were inflamed in August when authorities devalued the yuan currency, raising questions about their grip on the crisis.

Bernard Aw, market strategist at IG Markets Singapore, said Monday's price rise was bolstered after el-Badri said Sunday: "OPEC is confident that it will see a more balanced market in 2016.

 "In recent months, there has been a contraction in production from non-OPEC producers and an increase in global demand."

The comments meant the oil producers' cartel – which accounts for about 40 percent of global production – "still sees stronger demand in the medium term", Aw told AFP.

Despite the recent uptick, oil prices remain depressed owing to concerns about demand as the global economy stutters, a supply glut and the weakness in China. – Agence France-Presse

source: gmanetwork.com

Eastern Petroleum to adjust pump prices Tuesday

Eastern Petroleum Corp. is adjusting the pump prices of gasoline and diesel starting Tuesday.

A report on News TV Live on Monday said the oil firm is raising the price of gasoline by P0.15 per liter at 12:01 a.m.

However, Eastern Petroleum is lowering the price of diesel by P0.15 per liter. – Aica Dioquino/VS, GMA News

source: gmanetwork.com

Oil prices weak on economic concerns, OPEC target on market share

SINGAPORE – Oil markets were weak on Friday as fresh signs that OPEC will continue to value market share over prices outweighed expectations of a lift when the United States kept interest rates at historic lows.

US West Texas Intermediate (WTI) crude futures were trading at $46.74 per barrel at 0535 GMT, down 16 cents from their last settlement. Brent prices were at $49.12 per barrel, up 4 cents.

Kuwait, a key producer of the Organization of the Petroleum Exporting Countries (OPEC), said on Thursday the oil market would balance itself but that this would take time, indicating support for the group's policy of defending market share despite falling prices.

Other sources at OPEC backed this view saying they expected oil prices to rise by no more than $5 a barrel a year to reach $80 by 2020, with a slowing in rival non-OPEC production growth not enough to absorb the current oil glut.

Oil prices were largely steady, though at low levels, during Asian trading hours despite the U.S. Fed keeping interest rates unchanged on worries over the health of the global economy.

Analysts had suggested a weaker greenback – a usual result of low interest rates – would support oil, as it makes dollar-traded crude cheaper for countries using other currencies.

Yet because the Fed's decision was based on economic concerns, some analysts and traders had a different view.

"Shockingly, one (Fed) official thinks rates need to be cut, and not raised, before the end of 2015. This puts into serious question if there will be any rate raise at all before the end of this year," said Howie Lee of Singapore-based brokerage Phillip Futures.

"The sluggish economy is bound to weigh one way or another," he added.

Also, US lawmakers may be only months away from lifting a four-decade-old ban on most oil exports, although the outlook for oil prices in 2016 and beyond suggests it may be years before traders care.

Front-month WTI crude futures have strengthened this week to their firmest versus Brent since the early days of the US shale oil boom, knocking off 70 percent of their discount to the global benchmark to around $2 per barrel. – Reuters

Oil prices fall on China equity losses

LONDON - Oil fell on Monday as Chinese equities weakened, with a firmer dollar and global oversupply weighing on prices.

The U.S. Labor Day holiday helped keep trade thin.

China's main indexes closed down on Monday as investors sold shares in the aftermath of a four-day market holiday, during which further restrictions on futures trading were announced.

"Oil is only taking its cues from China this morning," SEB chief commodity analyst Bjarne Schieldrop said.

"The price is taking little notice of constructive data like stronger (European) equities, stronger base metals and last Friday's fall in U.S. rig count," he said.

Brent crude for October was down 75 cents at $48.86 a barrel by 1030 GMT. U.S. crude for October was down 70 cents at $45.35.

Oil has fallen almost 60 percent since June 2014 on a global supply glut. Prices have seesawed in recent weeks as concerns about a slowing Chinese economy caused turmoil in global stock markets.

"For commodities, the key demand-side figure to care about is not China’s GDP growing at 7 percent instead of 9 or 10 percent, it is the manufacturing price index, which has been falling for more than 40 months in a row," JBC Energy said.

A surprise gain in U.S. crude stocks of 4.7 million barrels in the week to Aug. 28, the biggest one-week rise since April, added to worries about oversupply.

That was despite the number of U.S. oil rigs falling by 13 to 662 last week, according to Baker Hughes data, the first decline in rig counts in seven weeks.

A firmer U.S. dollar also hurt oil prices by making the commodity more expensive for holders of other currencies.

The year-long decline in oil prices caused more than 5,000 job losses in Britain's North Sea oil and gas sector since late last year, the country's Oil and Gas Authority said on Monday.

Investors are awaiting euro zone second-quarter gross domestic product figures on Tuesday, followed by monthly global oil supply and demand data from U.S. and global energy authorities to give oil further direction.  — Reuters

Oil steadies after strong gains as equities rally

LONDON – Oil prices steadied on Friday after bouncing back from six-and-a-half-year lows on recovering equities markets, strong US economic growth and news of low crude supplies from Nigeria.

Oil saw its biggest one-day bounce since 2009 on Thursday, with North Sea Brent and US light crude  rising more than 10 percent. US crude is on track for its first weekly gain in nine weeks, ending its longest losing streak since 1986.

Global oil markets have fallen by a third since May and are still well under half their value a year ago thanks to a huge oversupply of fuel and sluggish demand. Worries over China's economy have compounded the falls in recent weeks.

But analysts said oil markets fell too far, too fast and a rebound was on the cards. A stock market rise, strong US growth data and a pipeline outage in Nigeria provided an excuse for a recovery on Thursday, they added.

"A short-covering rally, led by crude oil, pushed commodities higher across the board," analysts at ANZ said in a note to clients.

"Better-than-expected US GDP numbers were the main spark, although the force majeure on... exports from Nigeria extended the gains."

Brent was down 15 cents at $47.41 a barrel by 1015 GMT. It settled $4.42 higher at $47.56 on Thursday. US crude was unchanged at $42.56 a barrel, after ending up $3.96.

Asian shares extended a global rally on Friday with Chinese stocks jumping for the second day following a rocky start to the week.

The US economy grew faster than initially thought in the second quarter on solid domestic demand. Gross domestic product expanded at a 3.7 percent annual pace instead of the 2.3 percent rate reported last month, the Commerce Department said.

Shell's Nigerian unit declared force majeure on Bonny Light crude oil exports on Thursday after shutting two key pipelines in the country due to a leak and theft.

Venezuela has been contacting other members of the Organization of the Petroleum Exporting Countries, pushing for an emergency meeting with Russia to come up with a plan to boost oil prices, the Wall Street Journal reported.

Officials at core OPEC members in the Middle East Gulf say there is little chance of the cartel meeting without the support of Saudi Arabia, which has said it sees no need for a gathering. – Reuters