World oil prices edge higher on OPEC remarks

LONDON - The oil market drifted higher Thursday as investors digested an upbeat demand forecast from the head of the OPEC crude producers' cartel.

Brent North Sea crude for delivery in November added seven cents to stand at $51.40 per barrel just after midday in London.

US benchmark West Texas Intermediate for delivery in November won eight cents to $47.89 per barrel compared with Wednesday's close.

"Oil prices are... recouping some of the losses they suffered yesterday," said Commerzbank analyst Carsten Fritsch.

"The optimistic remarks made about oil demand by OPEC Secretary General El-Badri still appear to be having after-effects," he added.

Traders were mulling remarks by Abdalla Salem El-Badri, secretary-general of the Organization of the Petroleum Exporting Countries, who stated that demand will rise more than projected this year.

"World oil demand is estimated to increase by 1.5 million barrels per day in 2015, higher than the initial projection," El-Badri said in a statement to the International Monetary Fund (IMF).

"In 2016, improvement in global economic activities is anticipated to support world oil demand to grow by 1.3 million barrels per day."

Prices had tumbled Wednesday after a US Department of Energy report showed commercial crude stockpiles rose more than expected in the week ending October 2, indicating softer demand in the world's top oil consuming nation.

Stockpiles rose by 3.1 million barrels, more than the market estimate of 2.25 million barrels. That brought inventories to 461.0 million barrels, more than 27 percent higher than a year ago.

US production, which had fallen by 40,000 barrels per day in the previous week, unexpectedly surged by 76,000 barrels per day, dousing hopes of an easing in the global crude oversupply.

Sanjeev Gupta, who heads the Asia Pacific oil and gas practice at professional services firm EY, added that traders were waiting for Thursday's release of minutes of the last meeting of the Federal Reserve for further clues on the health of the US economy.

source: interaksyon.com

Global stocks fall, oil dips as Japan slips into recession

LONDON - Shares fell and the oil price slid on Monday after data showed Japan had slipped into recession, raising concerns about global growth.

European shares opened lower. They followed Tokyo's Nikkei index which lost 3 percent, its biggest one-day drop since August on news that the world's third-largest economy unexpectedly shrank by an annualised 1.6 percent in the third quarter.

This followed a 7.3 percent contraction in the previous quarter caused by a rise in the national sales tax and ran counter to economists forecasts for a 2.1 percent rebound.

The data initially pushed the yen to a seven-year low against the dollar, but as Tokyo stocks fell the Japanese currency rebounded.

It also shaved $1 off the price of Brent crude oil and sent ripples across Europe, where the FTSEurofirst 300 pan-European share index was down 0.3 percent.

Data on Friday showed euro zone economic output expanded more than expected in the third quarter but remained weak.

Leaders from the G20 group of countries agreed on Sunday a package of measures they said would add an extra 2.1 percentage points to growth over five years. They also agreed steps to tackle climate change and crack down on tax avoidance.

But financial markets focused on Japan's economic downturn.

"It's a bit of shock for the market, because people believed that the Bank of Japan had everything under control. But overall, the initial negative reaction shouldn't last too long. Investors still expect central bank action worldwide to support the global economy," FXCM analyst Nicolas Cheron said.

Other Asian shares also fell. MSCI's main index of Asia-Pacific stocks outside Japan lost 0.5 percent.

Chinese equities dropped as profit taking outweighed buying by foreign investors as a landmark Hong Kong-Shanghai trading link debuted on Monday.

The Shanghai Composite ended down 0.2 percent and Hong Kong's Hang Seng lost 1 percent.

The yen was the big mover on foreign exchange markets. After the GDP data, it fell to as low as 117.06 to the dollar but later rebounded and was last at 116.12, up 0.3 percent on the day.

The dollar index dipped 0.1 percent as a result and the euro made a similar gain versus the greenback.

As the Japanese data stoked concerns about the global economy, undermining stronger-than-expected U.S. retail sales data on Friday, German 10-year Bund yields also fell, opening down 2 basis points at 0.77 percent, just above a record low of 0.716 percent.

Brent crude last traded at $78.32 a barrel, down 1.4 percent after the Japanese data was seen hitting global demand.

"This is another knock on crude oil prices, another bearish factor," said Tony Nunan, oil risk manager at Mitsubishi Corp.

Eyes remain on possible OPEC production cuts when the oil cartel meets next week.

Gold held near two-week highs on a softer dollar. Spot gold was last at $1,185.60.

source: interaksyon.com

Oil prices rise in Asian trade amid falling US inventories

SINGAPORE - Oil prices edged higher in thin Asian trade Monday as investors focused on a fall in US crude inventories, indicating robust demand in the world's top consumer.

New York's main contract, West Texas Intermediate (WTI) for February delivery, was up two cents at $100.34 in afternoon trade while Brent North Sea crude for February gained 19 cents to $112.37.

The US Department of Energy on Friday reported that crude inventories for the week to December 20 fell by 4.7 million barrels, more than the 2.2 million expected by analysts in a Wall Street Journal survey.

The decline was the fourth consecutive drop after a 10-week run of rises that added 35 million barrels to total stockpiles.

Desmond Chua, market analyst at CMC Markets in Sydney, said the falling inventories in the world's biggest economy underscored "stronger demand as the global outlook brightens".

The upbeat stockpiles report released on Friday, delayed due to the Christmas holidays, is supporting WTI prices above the "psychologically important" $100 mark, Chua said.

The report came amid other signs the US economy is picking up. Data released last week showed new home sales, durable goods orders and jobless claims also bested expectations.

Investors meanwhile continue to monitor developments in South Sudan, where violence in a key oil-producing region has dented crude output and led to numerous oilfield staff evacuations.

More than 1,000 people have died since fighting between forces loyal to President Salva Kiir and former vice president Riek Machar broke out on December 15.

The United Nations said in a statement that the number of people who have taken refuge in its bases around the country has grown to 75,000.

Analysts say the fledgling producer usually exports about 220,000 barrels of crude oil a day to Japan, Malaysia and China.

source: interaksyon.com