OIL PRICES: $46 STILL
NASDAQ wrote, oil prices edged up Wednesday, supported by potential production caps by OPEC in November and ahead of a possible decline in U.S. stock levels.
The November contract for global crude benchmark Brent was up 0.78% at $46.33 while its U.S. counterpart West Texas Intermediate gained 0.58% to hit $44.94.
Some analysts remain skeptical, however.
Germany's Commerzbank said in a note that current output from OPEC is already high enough to mean that the global surplus of crude wouldn't fall as forecast in 2017. It added that any additional production from individual members would further exacerbate the issue.
"It is easy to forget that Nigeria and Libya also want to be allowed to step up their output, which is likely to account for over 1 million barrels a day," the note said.
Other analysts believe Saudi Arabia's offer to trim production by 500,000 barrels a day would be woefully inadequate, with Olivier Jakob from Switzerland-based Petromatrix going as far to brand the offer a "trick."
"A meaningful OPEC deal requires Saudi Arabia to cut by at least 1 million barrels a day and not just by its usual summer-to-winter seasonal variation, but we see no signs that this is about to happen," Mr. Jakob said in a note.
Traders are also awaiting the weekly U.S. inventory data due later Wednesday. Analysts surveyed by The Wall Street Journal expect the Energy Information Administration to report domestic crude stockpiles rose last week.
The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week ended Sept. 23 showed a 752,000-barrel drop in crude supplies, a 3.7-million-barrel decrease in gasoline stocks and a 343,000-barrel decline in distillate inventories, according to a market participant.
Nymex reformulated gasoline blendstock for October--the benchmark gasoline contract--rose 137 points to $1.4074 a gallon, while October diesel traded at $1.4125, 26 points higher.
ICE gasoil for October changed hands at $413.50 a metric ton, up $3.50 from Tuesday's settlement.
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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.