OIL PRICES MAXIMUM
PLATTS - ICE Brent crude futures remained at 27-month highs in mid-morning trade in Asia Monday, following the gains last week on the expectation that planned supply cuts will be extended to the end of 2018.
At 11:21 am Singapore time (0321 GMT), the ICE December Brent crude futures were down 6 cents/b (0.1%) from Friday's settle at $60.38/b, while the NYMEX December light sweet crude contract was up 4 cents/b (0.07%) at $53.94/b.
The expectation that output cuts by OPEC and non-OPEC producers will be extended have firmed up in recent days, amid comments by key officials that the group was inching closer to a consensus.
Over the weekend, Saudi Arabia's crown prince Muhammad bin Salman reaffirmed his backing for an extension beyond the current March 2018 deadline.
"The kingdom affirms its readiness to extend the production cut agreement, which proved its feasibility by rebalancing supply and demand," the crown prince said in a statement.
Similar remarks by him late last week sent crude prices soaring by more than 3% over October 26-27, with ICE Brent now at highs not seen since July 2015.
Nonetheless, an agreement is far from certain. Russian energy minister Alexander Novak, who is due to meet Saudi oil minister Khalid al-Falih in Riyadh this week, has said he does not see a need to announce any extension at the November 30 meeting.
With last week's gains, crude prices are now at risk of a short-term correction.
The Relative Strength Index on the four-hourly candlestick chart for front-month ICE Brent and NYMEX light sweet showed both contracts in overbought territory, a condition that has usually triggered a round of profit-taking in the past.
"We note that the RSI moving into extremely overbought territories has been an excellent advance indicator of crude oil downward corrections this year," said OANDA senior market analyst Jeffrey Halley.
The upswing in oil prices will also likely trigger greater hedging from producers, keeping future output elevated despite OPEC's efforts to curb global oversupply.
Analysts have identified the $51-$52/b region for NYMEX light sweet as a key area for hedging by US drillers.
Separately, Baker Hughes data last Friday showed the number of active US oil rigs rising by 1 in the week ended October 27 to 737.
As of 0321 GMT Monday, the US dollar index was down 0.06% at 94.67.
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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.