|Day's range||55.28 - 56.60|
Australia will join a US-led naval coalition to protect shipping in the Gulf, where tensions have mounted after Iran seized a British-flagged tanker in the Strait of Hormuz in July, Prime Minister Scott Morrison has announced. The US and the UK, which is also involved in the coalition, have been attempting to encourage partners and allies to join the effort and Mr Morrison said he had already discussed the issue with British Prime Minister Boris Johnson. "The government has been concerned over incidents in shipping in the Strait of Hormuz over the past few months.
Norwegian behemoth Equinor (EQNR) started oil production from the Mariner field in the UK North Sea, while British supermajor BP plc (BP) inked a new JV in India to set up 5,500 petrol pumps.
Petroleum and natural gas production in the United States jumped by 16 percent and 12 percent, respectively, in 2018, setting new production records and placing the United States as the world’s single largest producer of oil and natural gas
Oil markets are on edge as trade war uncertainty has once again taken center stage, with Mike Pompeo’s harsh comments about Huawei counteracted by wavier extension for the Chinese tech giant
As I stated yesterday, crude oil was running into a bit of trouble just above and it does look in fact as if that prediction is going to come true. Because of this, there’s a bit of a trend line keep in the market down, and of course major moving averages.
The British pound has fallen a bit during the trading session on Tuesday as we continue to see a lot of weakness involving global risk appetite and of course the Brexit. All things being equal it’s likely that we will continue to see this pair fall.
The oil and gas sector on the Forbes 2019 list of the world’s biggest public companies saw the largest profit growth among the top 10 sectors on the list
The price of coal used in power stations in Asia has fallen to its lowest level in three years due to fading demand in India and China, the two biggest coal consumers. Having surged to $120 a tonne last summer, the Australian benchmark seaborne price of thermal coal has fallen 44 per cent to $61 a tonne, according to S&P Platts. Coal’s fall is being driven by slower growth in power demand in China, the world’s largest coal consumer, as well as ample supplies of the fuel, according to analysts.
Based on Monday’s close at $56.14 and today’s early price action, the direction of the October WTI crude oil futures contract is likely to be determined by trader reaction to the main 50% level at $55.72.
(Bloomberg) -- The rivalry between U.S. and Middle Eastern oil producers has jumped up a notch as American crude makes its way right to the heart of Asia, the world’s most-prized energy market.Royal Dutch Shell Plc has offered a cargo of U.S. West Texas Intermediate Midland crude that’s priced off the Dubai benchmark in its debut during Asian hours on S&P Global Platts’ widely-referenced trading platform, according to two traders and data compiled by Bloomberg.Offering the shipment -- scheduled to be delivered to Singapore, or Linggi or Nipah in Malaysia -- against the Middle East’s oil benchmark brings it into direct competition with Gulf grades produced in Saudi Arabia, Abu Dhabi and Qatar. Once considered a one-off arbitrage, the flow of American oil to Asia has increased in recent years.“It’s another tasty entree on the oil buffet table that may be quite appetizing for some of the Asian buyers,” said John Driscoll, chief strategist at JTD Energy Services Ltd. in Singapore. “Considering that U.S. crude exports have steadily been ramping up, this move could be disruptive for the traditional suppliers in the Middle East.”While U.S. shipments of grades such as WTI Midland and Eagleford are typically priced off the American benchmark WTI, Shell’s offer makes it easier for buyers to compare it against similar-quality oil that refiners across South Korea, Japan and China typically take. The crude can be transferred to other vessels in the Malacca Strait near Singapore, making the logistics less complicated for buyers across Asia.American exports have eroded the dominance of Middle Eastern crude in Asia, at a time when the Organization of Petroleum Exporting Countries and its allies are restricting their output in an effort to prop up prices. South Korean oil imports from the U.S. rose to about 8.5 million barrels in June, compared with 3 million barrels a year earlier. American shipments to Asia are likely to expand further due the start up of two Permian pipelines this year.The offer by Shell was made for a WTI Midland cargo for delivery on Oct. 15-25 at a premium of $4.55 a barrel to Dubai benchmark price, the traders said. The deal was subject to the buyer’s acceptance of a vessel named Phoenix Jamnagar.(Updates with chart.)To contact the reporter on this story: Sharon Cho in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Serene Cheong at email@example.com, Andrew JanesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The United States has started secret preliminary talks via intermediaries with Diosdado Cabello, the leader of Venezuela’s Socialist party
A drone attack by the Yemeni Houthis caused fire at an oil and gas field in Saudi Arabia, the Kingdom’s Energy Minister said as quoted by the Saudi Press Agency
On 30 June 2019, Seplat Petroleum Development Company Plc (LON:SEPL) announced its earnings update. Overall, analysts...
Investing.com - Oil prices gained on Monday in Asia following a volatile week as traders digested the latest development on the Sino-U.S. trade front.
If you want to know who really controls Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564), then you'll...
Gold could be under pressure this week if recession fears continue to subside. There aren’t many major economic events this week so if there is volatility, it will likely be fueled by unexpected events by China or the United States. The key market moving event could take place on Thursday when Federal Reserve Chairman Jerome Powell delivers opening remarks at the Jackson Hole Economic Policy Symposium.
Traders are focusing on two things: Possible OPEC production cuts and lower demand due to a weakening global economy. They don’t seem to be too worried about U.S. growth at this time. However, they are expressing concerns about the rising U.S. production.
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.Australia’s booming coal industry has made it the world’s third-biggest exporter of potential carbon dioxide emissions locked in fossil fuels, placing it only behind oil giants Russia and Saudi Arabia.Australia makes up 7% of all global fossil fuel exports by carbon dioxide potential, as it accounts for almost one-third of the world coal trade, according to a report Monday from The Australia Institute, which has been critical of the federal government’s efforts to combat global climate change.While China and the U.S. are the world’s top greenhouse gas emitters in absolute terms, the report highlights the role relatively smaller polluters play in selling fossil fuels to other nations. Australia, which is also one of the biggest gas exporters, supplies economies throughout Asia, including Japan, China and South Korea.Exports of fossil fuels and supply infrastructure play a crucial role in locking in increased emissions, and their impact is often ignored in climate change policy, The AI said in the report.“Australia has a unique opportunity, and obligation, to face up to the climate crisis through policies to limit its carbon exports, starting with a moratorium on new coal mines,” it said. “The scale of exports from countries like Australia bring into stark relief why efforts to reduce world emissions must limit both demand and supply.”In terms of its own greenhouse gas pollution, Australia generates 1.2% of the world’s emissions while having just 0.3% of the population, according to the report. Domestic emissions have been rising in recent years as a number of giant gas export projects come on stream, while coal-fired power is still the mainstay of its electricity grid.‘Red Line’Prime Minister Scott Morrison has consistently said that Australia will meet the 2030 targets to reduce carbon emissions it made under the Paris Agreement, but has no clear policy agenda to reach them. His government has been a strong supporter of the coal industry, including backing Adani Group’s controversial Carmichael project, which could open up a new mining region in the country.His government last week rebuffed calls by leaders from its island nation neighbors for a commitment to phase out coal, and watered down language on climate change and coal in the communique that followed the Pacific Islands Forum in Tuvalu. Australia’s Pacific Minister, Alex Hawke, had earlier told local media that the coal industry is a “red line issue” for the nation that it needs to stand behind.“Many argue Australia’s emissions are small on a global scale, but this research shows the complete opposite,” Richie Merzian, the institute’s climate and energy program director, said in a statement. “Our domestic emissions are large and our exported emissions are even larger.”The AI based its analysis on data from the International Energy agency, with coal and gas figures for 2017 and oil for 2016. Emission factors for the fuels are from the United Nation’s Intergovernmental Panel on Climate Change.(Updates with details from Pacific Islands Forum in eighth paragraph.)To contact the reporter on this story: James Thornhill in Sydney at firstname.lastname@example.orgTo contact the editors responsible for this story: Ramsey Al-Rikabi at email@example.com, Aaron ClarkFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Saudi Arabia isn’t as willing to do whatever it takes to support oil prices as it would have us believe. That’s the only conclusion one can draw from what we’ve learnt since a government official said the kingdom wouldn’t tolerate a continued price slide.After crude fell to a seven-month low earlier this month, Saudi Arabia got on the phone to other members of the OPEC+ group of nations to discuss possible policy responses. It doesn’t appear to have got very far.Russia – the key non-OPEC member of the extended producer group – made all the right noises. An emailed statement from its energy ministry said it was “utterly important to act responsibly” by giving the market only as much oil as was needed. You might think that would mean Russia sticking to the production target it agreed with OPEC in December. You’d be wrong.The Russians pumped 11.32 million barrels a day in the first half of August, according to Interfax. That’s up by 180,000 barrels from July and above its pledged daily level of 11.19 million barrels. While the country did produce less than required for three months in a row through to July, that was mainly the result of the Druzhba pipeline contamination crisis.Indeed, Moscow may be better able to weather lower prices than Riyadh. U.S. President Donald Trump’s sanctions on exports from Iran and Venezuela have boosted Russia’s oil income by about $1 billion dollars since November. Russian Urals grade is a pretty good substitute for Iranian crude for European refiners and its value has risen relative to that of the benchmark Brent.So what about Saudi Arabia’s OPEC partners? The biggest of those, Iraq, doesn’t seem to be helping much either. Tanker-tracking data compiled by Bloomberg suggest that its crude exports in the first half of August were the highest in three months. Flows out of West Africa also appear to have been robust in August.Will the kingdom go it alone? Perhaps not.Having already cut more than twice as much oil output as it promised in December, Riyadh has signaled its unwillingness to keep shouldering the burden alone. Its energy minister Khalid Al-Falih insisted at OPEC’s last meeting in July that the Saudis had already cut “deep enough.”They did manage to generate a brief bump in prices by that suggestion of doing whatever it takes. But the market recovery is already running out of steam. And the promise was never quite as meaningful as some thought.As part of the pledge, Saudi officials said the kingdom would keep oil exports below 7 million barrels a day in September and supply customers with 700,000 barrels a day less than they’d asked for. That looks like a big number, but it rather depends on what potential buyers asked for. Dig a bit deeper and the commitment starts to look less bullish.Saudi Arabia didn’t actually say it would cut exports by 700,000 barrels a day next month. Instead, the officials pointed to the 10.3 million barrels a day that they could theoretically produce in September to meet demand, and that the reduction would come from that figure. (It’s worth noting that this 10.3 million figure is more than the Saudis have produced in any other month this year, according to data from the kingdom). So the upshot is that Saudi Arabia’s actual production next month may be about 9.6 million barrels a day. It says it produced 9.58 million last month, so this doesn’t look like a cut at all. And then there’s the issue of where the cuts will come from. Saudi Aramco, the national oil company, has allocated full volumes of contractual crude supply for September sales to at least six buyers in Asia. So the U.S. and Europe will have to bear the brunt of reductions. Supplies to U.S. buyers will be about 300,000 barrels a day less than they’d asked for, according to the officials, while cuts to European buyers will need to be bigger still to hit the 700,000 target.That’s going to be a stretch. The kingdom has only shipped about 530,00 barrels a day to North America so far this year, while deliveries to Europe have averaged just 210,000 barrels, according to Bloomberg tanker tracking. So to be in a position to make the sort of cuts being talked about, buyers must have been asking for a lot more oil than they’ve bought from Saudi Arabia in the recent past.The numbers just don’t stack up. If you’re waiting for a big output cut from Saudi Arabia to rescue oil prices – don’t.To contact the author of this story: Julian Lee at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Based on Friday’s price action and the close at $1523.60, the direction of the December Comex gold futures market on Monday is likely to be determined by trader reaction to the 50% level at $1517.50.
Based on Friday’s price action and the momentum into the close, the direction of the September E-mini S&P; 500 Index on Monday is likely to be determined by trader reaction to the main 50% level at 2881.00.
Based on Friday’s price action and the close at 25907, the direction of the September E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to the main 50% level at 26012.