OPTIMISTIC OIL PRICES
BLOOMBERG - Oil held its gains after an industry report was said to show U.S. gasoline and distillate stockpiles slid as OPEC weighed whether to extend its production caps beyond March.
Futures edged higher from the settlement in after-market trading in New York, prompted by reports that data from the American Petroleum Institute showed a 5.75 million barrel drop in gasoline last week and 4.95 million fewer barrels of distillate. Meanwhile, OPEC, set to meet next month on prolonging the cuts, are said to be planning how to prevent a new price-killing glut once they end.
The market "looks a lot more bullish than it did three or four months ago," said James Williams, president of London, Arkansas-based energy researcher WTRG Economics. The stockpile declines aren't surprising since "refinery utilization is coming down this time of year because it's turnaround season," he said. Nonetheless, he predicted prices will rally again Wednesday if the government confirms the drops.
The Organization of Petroleum Exporting Countries is expected to extend supply cuts beyond their March expiration date, which has supported oil above the key $50-a-barrel psychological threshold. In addition, oil demand is proving more resilient than some expected, Saudi Arabia's Minister of Energy and Industry Khalid Al-Falih said in Riyadh.
OPEC is implying it's "likely to accept the current supply discipline for the rest of 2018, and ultimately the market is looking at that as optimistic," said Bart Melek, head of global commodity strategy at TD Securities in Toronto.
At the same time, one major contributor to weak crude prices -- U.S. shale drillers -- appear to be curtailing some activity. The most recent rig count by Baker Hughes showed the biggest one-week drop in the Permian Basin fleet in 19 months. Schlumberger Ltd. and Baker Hughes, the two largest oilfield-service companies, blamed their own lackluster profit reports on the reluctance of North American explorers to boost spending.
West Texas Intermediate for December delivery traded at $52.54 a barrel at 4:41 p.m. after settling at $52.47 a barrel on the New York Mercantile Exchange. Total volume traded was about 6 percent below the 100-day average.
Brent for December settlement gained 96 cents to end the session at $58.33 on the London-based ICE Futures Europe exchange. The global benchmark traded at a premium of $5.86 to WTI.
Stockpiles at Cushing, Oklahoma, the delivery point for New York-traded futures contracts, probably declined by 500,000 barrels, according to a separate forecast compiled by Bloomberg. A Bloomberg survey estimated that U.S crude stockpiles slid by 3 million barrels last week, while gasoline stockpiles probably rose by 1.7 million barrels.
The API report also showed crude stockpiles rose by 519,000 barrels, while Cushing supplies fell by 55,000 barrels last week. A draw at Cushing would be the first since August if the Energy Information Administration confirms it in its data release on Wednesday.
Crude flows from northern Iraq to Turkish port of Ceyhan rose to 300,000 barrels a day, according to a port agent.
The initial public offering of Aramco is on track for next year, the head of the sovereign fund said.
Concho Resources Inc., the $19 billion Texas-based explorer that's been stuck in junk status since its public debut a decade ago, is alone among a group of 240 oil and natural gas companies that Moody's Investors Service said may rise to investment grade by the end of next year.
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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.