|Day's Range||56.43 - 57.97|
Given that traders ignored another build in U.S. inventories and reports predicting lower demand and higher supply, the U.S.-China trade deal is probably all crude oil traders care about at this time.
Venezuela’s oil exports rebounded in October, surprising friend and foe by using some proven shipping tactics to ship its oil to customers in Asia
Drillers are laying down rigs, hydraulic-fracturing equipment sits idle and U.S. energy producers are promising fiscal restraint. Yet domestic oil production keeps rising.
The confirmation of the closing price reversal bottom is potentially bullish. Typically, this chart pattern leads to a 2 to 3 day counter-trend rally. Its first upside target is usually 50% to 61.8% of the last leg down. This makes 1.1083 to 1.1104, our first objective.
Both OPEC and the IEA released key reports this week, both of which pointed to some major worries for the oil cartel, yet oil markets seem not to have noticed
France's parliament on Friday voted down a proposed tax break on palm oil -- which would have hugely benefited energy giant Total -- after lawmakers and environmental activists complained the legislation had been rushed through the day before without proper debate. In the second vote in two days on the issue, 58 MPs in the National Assembly voted against including palm oil on a list of biofuel sources that will enjoy tax breaks until 2026. Prime Minister Edouard Philippe called for the second vote, which reversed an amendment to the 2020 budget passed by the lower house on Thursday, after lawmakers said they had not been sufficiently informed about the tax break.
The S&P; 500 rallied it during the week, but it should be noted that most of that rally was during the day on Friday. At this point, the market looks very likely to continue grinding it out to the upside, but it is getting a bit stretched.
Silver markets stabilized during the week, hanging on the 200 week EMA. However, they did not necessarily do a lot of damage to that horrifically bearish candlestick from the previous week.
The crude oil markets fell during a large part of the week but also turned around to rally during just as much. It seems like every time the short-term charts showed a bearish move, the buyers were there to pick them up.
Natural gas markets gapped lower to kick off the week, and then broke down. However, we have seen buyers come back into the market the turn things around and repudiate the shooting star from the previous week.
If you're a landlord in a city with escalating housing demand — think San Francisco — you despise most regulations, but there's one kind you absolutely adore: restrictions on development that curb construction of new buildings. The same logic applies in bulk ocean shipping — the non-regularly scheduled transport of crude oil, refined products, dry bulk and liquefied gas. The move to cut carbon intensity and greenhouse gas (GHG) emissions is constraining the creation of new vessel capacity.
The Euro rallied a bit during the trading session on Friday, reaching towards the 50 day EMA. At this point, the market looks as if it is trying to recover from the 1.10 level, but quite frankly this is just a large round number so you can’t read too much into it.
The federal government's EIA report revealed that domestic crude production climbed to yet another record high of 12.8 million barrels per day.
Putin, talking at the BRICS summit that took place this week in Brazil, said that he wants to continue cooperation with OPEC well beyond just production regulation
Bitcoin is once again testing the strength of the optimists. It is easy to see a sluggish downward trend on the chart, but on Tuesday and Friday morning, there were a couple of price bursts that ended in nothing. So far, it looks like an attempt to make a sharp jump from the swamp.
French Prime Minister Edouard Philippe on Friday called a fresh vote on a palm oil tax break for energy giant Total, after lawmakers and environment activists cried foul when the benefit was rushed through parliament without debate. The second vote, which could come as soon as Friday afternoon, "will allow MPs to have a debate worthy of what's at stake," an official in Philippe's office said. Several lawmakers were up in arms after learning the amendment for the 2020 budget had been approved late Thursday, saying they had not been sufficiently informed about the tax break.
GBP/USD has continued higher after consolidating in a bull flag for most of the week. However, strong resistance is nearby from a declining trendline that originates from the October high.
"The OPEC+ countries face a major challenge in 2020 as demand for their crude is expected to fall sharply," the Paris-based agency said in a monthly report. The IEA estimated non-OPEC supply growth would surge to 2.3 million barrels per day (bpd) next year compared to 1.8 million bpd in 2019, citing production from the United States, Brazil, Norway and Guyana. "The hefty supply cushion that is likely to build up during the first half of next year will offer cold comfort to OPEC+ ministers gathering in Vienna at the start of next month," it added.
(Bloomberg) -- Russia has earned more money this year from the OPEC+ deal than Saudi Arabia, underscoring how the kingdom has carried a greater share of the burden of production cuts.Saudi Arabia on average has cut production almost ten times deeper than Russia since the countries joined forces at the end of 2016, according to estimates in the International Energy Agency’s monthly oil market report published on Friday. Yet Riyadh has received just three quarters of the additional financial benefit enjoyed by Moscow, the data show.Russia has earned an average of $670 million a day in gross crude oil revenues in 2019. That’s $170 million a day more than in the last quarter of 2016, when the Organization of Petroleum Exporting Countries and its partners reached the first production-cuts deal, the IEA said. Saudi Arabia has been earning $630 million every day since the start of the year, up $125 million compared to the fourth quarter of 2016.While the kingdom has reduced its oil production since the end of 2016, by around 740,000 barrels a day, Russia’s daily output cuts have averaged just 75,000 barrels, according to the Paris-based agency.Russia and Saudi Arabia have driven close cooperation between OPEC and several other oil-producing nations. Yet while the kingdom has consistently pushed for coordinated output cuts to avert a supply glut, Russian officials have repeatedly taken a more cautious tone, often voicing support for further production cuts only just before the previous agreement expires.Rosneft PJSC, Russia’s largest crude producer, has often criticized the Kremlin’s close cooperation with OPEC, claiming the cuts may lead to the country losing its oil-market share. Rosneft Chief Executive Officer Igor Sechin said last June that the extension of the cuts deal serves Saudi, rather than Russian, interests.President Vladimir Putin said this week that Saudi Arabia’s call to all OPEC+ members to stick to their production targets under the deal is due to the planned initial public offering of the kingdom’s state-run Saudi Arabian Oil Co. “They have their current interests, and we have to respect that, and this is what we are doing” as part of the OPEC+ cooperation, Putin said.The production curbs have been weighing on Russia’s economy, which is heavily dependent on revenue from the hydrocarbon and mining industry. The latest cuts running through March 2020 are set to take as much as a half percentage point off Russia’s annual economic growth, according to Goldman Sachs Group Inc. Last year, the nation’s gross domestic product rose by 2.3%.To contact the reporters on this story: Dina Khrennikova in Moscow at email@example.com;Olga Tanas in Moscow at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Helen RobertsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Global oil markets are likely to remain “calm” next year as soaring production outside OPEC and high inventories keep consumers comfortably supplied, the International Energy Agency said.Supplies outside OPEC -- driven by the U.S., Brazil, Norway and Guyana -- will increase by 2.3 million barrels a day in 2020, almost twice the expansion in world oil demand, the agency said in its monthly report. The growth estimate is about 100,000 barrels a day higher than last month.Oil prices have remained steady near $60 a barrel in London for several months, surging only briefly in response to an unprecedented attack on Saudi Arabia’s energy facilities in September. U.S. sanctions on Iran’s exports and political unrest in Venezuela and Iraq have also had limited impact.“The calmness is supported by a well-supplied market and high inventories,” said the Paris-based agency, which advises most major economies on energy policy. “This may continue into 2020 because non-OPEC countries will grow their production” significantly.As a result, the Organization of Petroleum Exporting Countries -- which has cut production this year to prevent a surplus -- is currently pumping about 1.7 million barrels a day more than will be needed in the first half of next year, the report showed.OPEC and its partners will meet on Dec. 5 to 6 to consider next year’s output levels, though they’ve so far indicated little desire to make the deeper cuts that would be needed to avert a new oversupply. The outlook for global economic growth remains precarious, pressured by the ongoing trade dispute between the U.S. and China.“The hefty supply cushion that is likely to build up during the first half of next year will offer cold comfort to OPEC+ ministers gathering in Vienna at the start of next month,” the IEA said. “However, a continuously well-supplied market will lend support to a fragile global economy.”Oil inventories in developed nations accumulated by about 9 million barrels during the third quarter, even as OPEC deliberately restrained output and Saudi Arabia lost supplies in the Sept. 14 attack on its Abqaiq processing plant.‘Sluggish’ RefiningAnother reason for the market’s torpor has been “sluggish” processing of crude oil by refiners, whose intake will drop this year for the first time since the financial crisis of 2009, according to the report. However, the decline is a very modest 90,000 barrels a day.In the short term, the market ought to pick up as global oil demand growth accelerates. Low oil prices and robust U.S. demand for petrochemicals will spur worldwide consumption to expand by 1.9 million barrels a day year-on-year in the fourth quarter, more than four times the rate observed in the second, the agency said.The calmness the IEA sees resuming next year fits with its expectations for the long term, outlined in its annual World Energy Outlook earlier this week. That report anticipates that increasingly efficient car engines and the adoption of electric vehicles will cause world oil demand to plateau around 2030.To contact the reporter on this story: Grant Smith in London at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Amanda JordanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
India's palm oil imports climbed 8% in the marketing year ended Oct. 31 compared with the same period a year earlier as buying of refined palm oil from Malaysia surged after New Delhi reduced import tax on the oil, a leading trade body said on Friday. The higher palm oil purchases, hitting 9.4 million tonnes, lifted India's total vegetable oil imports by 3.5% for the 12 months to 15.5 million tonnes, the Solvent Extractors' Association (SEA) said in a statement. New Delhi's refined palm oil imports in the 2018/19 marketing year jumped 28% from a year ago to 2.7 million tonnes, the SEA said.
Malaysian palm oil futures retreated from last session's gains to trade lower on Friday, as rival oils fell and as the ringgit strengthened. The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was down 1% at 2,580 ringgit ($623.49) in early trade. 4. It closed higher in the previous session after two days of consecutive losses but fell again due to cheaper offerings on the Dalian Commodities Exchange and the Chicago Board of Trade (CBOT).
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios...