OIL PRICES MAXIMUM ANEW
BLOOMBERG - Oil reached levels last seen more than two years ago as Saudi Arabian King Salman's anti-corruption drive shook the world's biggest crude exporter just weeks before major producers gather to discuss prolonging historic production caps.
Futures advanced as much as 1.2 percent in New York. The purge eliminated potential rivals to Crown Prince Mohammed bin Salman and included a member of the royal council overseeing state oil producer Saudi Aramco and one of its directors. The arrests of princes, government ministers and billionaires may cast a shadow over the Nov. 30 OPEC meeting.
"The geopolitical supply risk premium is starting to bear its head in the market right now because OPEC supply cuts have made it relevant," Michael Loewen, a commodities strategist at Scotiabank in Toronto, said by telephone. Now that OPEC "has capped supply and demand has continued to grow higher over time, we are near balanced and that means supply risk is more important."
Oil has advanced for four straight weeks in New York on signs that a global glut is shrinking in response to output caps implemented by the Organization of Petroleum Exporting Countries and allied producers including Russia. At the Nov. 30 gathering, Saudi Arabia, Iraq and other major suppliers are expected to make the case for extending the limits beyond their March expiration.
West Texas Intermediate for December delivery rose 23 cents to $55.87 a barrel at 10:04 a.m. on the New York Mercantile Exchange after earlier rising to $56.28, the highest intraday price since July 2015.
Brent for January settlement climbed 46 cents to $62.53 on the London-based ICE Futures Europe exchange, and traded at a $6.41 premium to WTI for the same month.
Security forces arrested 11 princes, four ministers and dozens of former ministers and prominent businessmen, according to Saudi media and a senior official who spoke on condition of anonymity.
"I wouldn't expect a change of strategy for Saudi Arabia" in terms of production and OPEC policy, Rupert Harrison, chief macro strategist at BlackRock International Ltd., said in a Bloomberg television interview. "But clearly the risk is always from disruption, and that's the uncertainty that hangs over this and is always very hard to call."
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PLATTS - For full-year 2017, South Korea's crude imports from its biggest supplier Saudi Arabia fell 1.7% to 319.02 million barrels, compared with 324.45 million barrels in the previous year, customs data showed. On the contrary, South Korea has imported 1.77 million mt, or around 13 million barrels, of crude from the US in 2017, about four times higher than in 2016. Shipments from Russia grew to 140,000 b/d last year from 112,000 b/d in 2016.
AOG - ADNOC’s 2030 strategy, he said, aims to capitalise on predicted global economic growth and demand for oil and petrochemical products, particularly in non-OECD countries. As its business responds to changing market dynamics, the company will continue to broaden its partnership base, strengthen its profitability, adapt to new realities and expand market access.
WNN - Under the terms of the assignment and purchase agreement it has signed with Nucleus and Brookfield, Toshiba will sell its rights to assert claims against Westinghouse related to the parent guarantees in the amount of $5.788 billion, and on account of other claims Toshiba holds against Westinghouse in the amount of $2.284 billion to Nucleus, for the sale price of $2.160 billion.
REUTERS - Brent crude futures LCOc1 were at $69.23 a barrel at 0808 GMT, up 8 cents from their last close, but down from a high of $69.37 earlier in the day. Brent on Monday rose to $70.37 a barrel, its highest since December 2014, the start of a three-year oil price slump. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $63.84 a barrel, down from a high of $63.89 earlier, but up 11 cents from their last settlement. WTI hit $64.89 on Tuesday, also the highest since December 2014.