OIL PRICES: $49 AGAIN
According to REUTERS, oil prices dipped on Thursday, extending the previous day's decline, as the market focus returned to a global supply overhang, although a surprise fall in Chinese crude inventories did lend some support.
International benchmark Brent crude oil futures were trading down 10 cents at $48.85 per barrel at 0709 GMT, having closed down 1.8 percent the previous day.
U.S. West Texas Intermediate (WTI) crude futures were at $46.73 a barrel, down 4 cents, after dropping 2.8 percent on Wednesday.
Traders said that a surprise decline in Chinese crude stocks in July, which fell 5.7 percent from June, to 28.9 million tonnes (around 212 million barrels) and their lowest level since April 2013, lent an otherwise weak market some support.
Prices earlier this week pared a rally that pushed crude up by more than 20 percent in August on talk of a potential deal by oil producers to freeze output.
Hopes of a deal were dampened by record output from the Organization of the Petroleum Exporting Countries (OPEC) and little prospect of voluntary restrictions.
"We do not expect a production freeze - let alone a production cut – from the OPEC meeting," U.S. investment bank Jefferies said on Thursday, adding that even if a freeze was agreed, "the effects on the physical market would appear to be minimal."
With output high, not just from OPEC but also other top producers like Russia, and the demand outlook shaky, analysts said there was little prospect of an end to the glut, which has pulled down crude prices from over $100 a barrel in 2014 to their current sub-$50 levels.
High storage levels are also weighing on the markets.
In the United States, commercial crude oil stocks rose by 2.5 million barrels to 523.6 million barrels, or 16 percent higher than a year ago.
In refined products, stocks around the world are also brimming as demand slows while refinery output remains high.
"Ample inventories were due to weaker demand in Asia, but more generally were driven by excess supply generated by refiners maximizing runs, notably to produce gasoline in the U.S.," BNP Paribas said.
China's implied oil demand fell 0.3 percent from a year earlier to 10.58 million barrels per day (bpd) in July.
|February, 16, 23:45:00|
|February, 16, 23:40:00|
|February, 16, 23:35:00|
|February, 16, 23:30:00|
|February, 16, 23:25:00|
|February, 16, 23:20:00|
AOG - The Dubai Electricity & Water Authority (DEWA) is to invest around $22bn on new energy projects across the next five years, with the renewables sector accounting for an increasing share of electricity generation, according to CEO Saeed Mohammed Al Tayer.
TRANSCANADA - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada or the Company) announced net income attributable to common shares for fourth quarter 2017 of $861 million or $0.98 per share compared to a net loss of $358 million or $0.43 per share for the same period in 2016. For the year ended December 31, 2017, net income attributable to common shares was $3.0 billion or $3.44 per share compared to net income of $124 million or $0.16 per share in 2016.
ROSATOM - February 13, 2018, Moscow. – ROSATOM and the Ministry of Scientific Research and Technological Innovations of the Republic of Congo today signed a Memorandum of Understanding on cooperation in the field of peaceful uses of atomic energy.
FRB - Industrial production edged down 0.1 percent in January following four consecutive monthly increases. Manufacturing production was unchanged in January. Mining output fell 1.0 percent, with all of its major component industries recording declines, while the index for utilities moved up 0.6 percent. At 107.2 percent of its 2012 average, total industrial production was 3.7 percent higher in January than it was a year earlier. Capacity utilization for the industrial sector fell 0.2 percentage point in January to 77.5 percent, a rate that is 2.3 percentage points below its long-run (1972–2017) average.