OIL PRICE: ABOVE $63 TOO
BLOOMBERG - Oil headed for its best weekly advance in a month after an outage on the Keystone pipeline added to speculation crude supply could tighten and as investors await OPEC's decision on extending output curbs.
Futures gained as much as 1 percent in New York. News that TransCanada Corp. was said to have cut 85 percent of Keystone's November shipments because of last week's spill in South Dakota has helped West Texas Intermediate prices head toward a 3.4 percent gain this week. Meanwhile, Brent crude has climbed just 1.1 percent, leading to the narrowest spread on a closing basis between the grades since early September.
The U.S. benchmark settled above $58 a barrel for the first time since mid-2015 this week on heightened optimism the Organization of Petroleum Exporting Countries and its allies will agree to prolong cuts at a Nov. 30 meeting in Vienna. Prices are up more than 7 percent in November, heading for a third monthly gain in what would be their longest winning streak since May last year.
"The Keystone outage is putting upward pressure on oil prices," Kim Yumi, a Seoul-based market strategist at Kiwoom Securities Co., said by phone. "While expectations over OPEC's supply-curb extension has already been reflected in prices, there's a high chance we may lose a clear price direction next week as the market may take a wait-and-see stance close to the meeting."
WTI for January delivery was at $58.43 a barrel on the New York Mercantile Exchange at 1:25 p.m. in Singapore, up 41 cents. The contract added $1.19 to $58.02 on Wednesday. There was no settlement Thursday because of the Thanksgiving holiday in the U.S. and all transactions will be booked Friday.
Brent for January settlement lost 14 cents, or 0.2 percent, to $63.41 a barrel on the London-based ICE Futures Europe exchange. Prices rose 23 cents to $63.55 on Thursday. The global benchmark crude traded at a premium of $4.98 to WTI.
This week, the front-month contract for WTI on Nymex turned more expensive than the second-month contract, a structure known as backwardation, driven by the Nov. 16 shutdown of the Keystone pipeline after a spill.
Also aiding prices this week is data showing U.S. crude inventories declined to about 457.1 million in the week ended Nov. 17, according to the Energy Information Administration. Stockpiles at Cushing, Oklahoma, dropped by 1.83 million barrels to 61.2 million, the largest draw since July. Meanwhile, American production gained for a fifth week to 9.66 million barrels a day.
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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.