Posts belonging to Category commodities



U.S. Oil Exports Double

The pace of exports hit 1 million barrels a day

American oil exports are emerging as a disruptive new force in global markets.

The U.S. exported 1 million barrels of oil a day during some months so far this year—double the pace of 2016—and is on track to average that amount for all of 2017, according to a Wall Street Journal analysis of data from the U.S. Energy Department and the International Trade Commission.

http://www.wsj.com…  Thu.,  08  June 2017

Oil prices tumbled dropping more than 4%

Extension by OPEC of their current oil output cut

Oil prices tumbled dropping more than 4%, as the markets sold off following an as expected extension by OPEC of their current oil output cut. What was clear is that the market had probably priced in something even greater than the extension of the agreement until March.  What many had hoped was that OPEC would generate deeper cuts, and further attempt to rebalance markets by reducing the amount of crude oil placed on the market on a daily basis.  The selloff reflects disappointment, but OPEC believes that a 9-month rollover will rebalance global inventories.  Meanwhile the happiest producers have to be the United States, who has gladly filled the void left by OPEC.

WTI crude futures are down 4.3% closing near $49.15, which breaks a three-week bull run and stands as the biggest one-day drop since May 4. The losses have been seen after the Saudi energy minister said that we’re going to roll over with the same terms over a nine-month period, with regard to the OPEC-led output cut. This would extend the existing accord for a 1.8 million barrels-per-day supply reduction from the end of June through to the end of March next year.

The so-called Vienne Group, which is OPEC nations plus allied oil producing nations, most notably Russia, met on Thursday. The sell-off in crude markets appears to be an on-the-fact style market reaction. Saudi Arabia and Russia are concerned about current levels and will likely keep cheating to

http://www.fxempire.com…  Fri.,  26  May 2017

Half of European businesses to reduce their use of UK suppliers

UK/Europe: how to avoid Brexit tariffs

 

  • 32% of UK businesses who use EU suppliers are looking for British replacements
  • Nearly half (46%) of European businesses expect to reduce their use of UK suppliers
  • 36% of UK businesses plan to respond to Brexit by beating down supplier prices
  • The UK’s “weak negotiating position” is seen as the biggest hurdle in trade talks

Businesses either side of the English Channel are preparing contingency plans which could sever supply chains between the UK and EU, according to the Chartered Institute of Procurement & Supply (CIPS).
A survey of 2,111 supply chain managers found that 32% of UK businesses who work with suppliers on the continent are actively looking for alternative suppliers based in the UK as a response to the referendum.
Businesses within the EU are even more advanced in their preparations. Almost half (45%) of EU businesses who work with UK suppliers are in the process of finding local replacements.

http://www.cips.org …  Tue.,  16  May 2017

The new Silk Road

Summit promotes global trade infrastructure project

China opens on Sunday a summit to promote its massive global trade infrastructure project, highlighting Beijing’s ambitions to spearhead a new era of globalisation as Washington shifts toward inward-looking policies. President Xi Jinping will host leaders from 29 nations in Beijing for a two-day forum on his signature foreign policy programme, a revival of the Silk Road dubbed the One Belt, One Road Initiative. The Chinese-bankrolled project, unveiled in 2013, seeks to link the country with Africa, Asia and Europe through an enormous network of ports, railways, roads and industrial parks.

The initiative spans some 65 countries representing 60 percent of the world population and around a third of global gross domestic product. The China Development Bank has earmarked $890 billion for some 900 projects. Belt and Road is seen as a practical solution to relieve China’s industrial overcapacity. But it could also serve Beijing’s geopolitical ambitions.

http://www.i24news.tv…  Mon.,  15  May 2017

Oil price dives

Oil at its lowest levels since late November

Crude futures slumped anew on Friday, at one point tumbling 3% within minutes, reflecting fast-deteriorating confidence in ongoing production cuts.

Prices tumbled nearly 5% as of Thursday’s settlement in New York, putting oil at its lowest levels since late November, when the Organization of the Petroleum Exporting Countries agreed to cut output for six months. After nearly eight hours of subsequently steady trading, prices started to slightly ease before slumping shortly after 11 p.m. Eastern Thursday. At one point in Asia, prices slid 3% quickly.

No immediate catalyst was identified, but “the selloff means Asian investors are resonating with the bearish sentiment saw overnight in New York,” said Gao Jian, an energy analyst SCI International. He estimated price could drop another dollar or two before staging a mild rebound.

http://www.marketwatch.comFri.,  05  May 2017

White House: Trump will not immediately bolt NAFTA

Trump wants to renegociate NAFTA

President Donald Trump on Wednesday told the leaders of Mexico and Canada that he will not immediately pull out of the North American Free Trade Agreement, just hours after administration officials said he was considering a draft executive order to do just that.

The White House made the surprise announcement in a read-out of calls between Trump, Mexican President Enrique Pe?a Nieto and Canadian Prime Minister Justin Trudeau.

http://www.abcnews.go.com…  Thu.,  27 April 2017

Oil at one-month high

U.S. strikes in Syria rattle markets

Oil prices hit a one-month high on Friday after the United States attacked a Syrian government airbase, sending shockwaves through global markets and raising concerns of the conflict spreading in the oil-rich region. The toughest U.S. action yet in Syria’s six-year-old civil ramped up geopolitical uncertainty in the Middle East. Oil, gold, foreign exchange, German and U.S. 10-year bonds, all reacted strongly to the air strikes. [MKTS/GLOB]

Brent crude futures LCOc1 were up 88 cents at $55.77 a barrel at 0827 GMT, the highest since March 8, after reaching an intra-day high of $56.08 a barrel shortly after the overnight air strikes were announced. U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 85 cents at $52.55 a barrel, having reached a intra-day high of $52.94 a barrel.

http://www.reuters.com…  Fri,  07 April 2017

EU chief Juncker warns against EU-US trade war

A trade war would neither be in Europe’s nor the USA’s interest

European Commission President Jean-Claude Juncker warned in a newspaper interview that a trade war between the United States and Europe would not be good for either.Asked by Bild am Sonntag newspaper whether Europe could withstand a trade war with the United States, Juncker said: “A trade war would neither be in Europe’s nor the USA’s interests.” He said it was necessary to take protectionist comments being made by U.S. President Donald Trump’s administration seriously and also to be prepared.

http://www.reuters.com…  Mon,  20 March 2017

Marijuana producer listed on S&P Dow Jones

Canopy Growth being added to S&P/TSX composite index

Canopy Growth Corp. is being added to the influential S&P/TSX Composite Index in another milestone for Canada’s fledgling marijuana industry. The cannabis producer will be added to the index’s health-care sector prior to the start of trading on March 20, S&P Dow Jones Indices said late on Friday. It said it will be the first marijuana company to join the index. Big institutional investors and index funds use the index to guide buying decisions, so being included can lead to more demand for a stock. Canopy shares were up 2.2 per cent at $11.07 late on Monday.

http://www.theglobalandmail.com…  Wed,  15 March 2017

Oil: US stockpile build-up weighs on price

U.S. crude falls sharply to below $50

Oil was sharply lower Thursday on top of steep losses overnight as U. S. crude stocks jumped.
U.S. crude shed $1.31, or 2.61%, to $48.97. The last time it traded below $50 was in December.
Brent crude was off $1.27, or 2.39%, at $51.84 at 08:00 ET.
Oil settled down 5% overnight as the Energy Information Administration reported a rise of 8.209 million barrels in U.S. crude stocks.
That was well above the forecast of an increase of 1.967 million barrels.
Oil prices slumped despite good progress by major producers in implementing agreed output cuts.
Kuwait’s oil minister said Wednesday OPEC producers had exceeded their target cut of 1.2 million barrels a day in February.
He estimated non-OPEC producer compliance with cuts of some 558,000 barrels a day at 50-60%.
Investors will be looking to Baker Hughes rig count data on Friday.

http://www.investing.com…  Fri,  10 March 2017