|Day's Range||58.93 - 60.30|
A United Arab Emirates plan to launch its own global oil benchmark was thrown into confusion on Tuesday after comments made by its own national oil company. ADNOC first said it sees Murban as a contract to replace the global Brent benchmark, only to retract the comment. The development highlights a complex nature of Abu Dhabi National Oil Company's (ADNOC) Murban futures contract.
The head of Intercontinental Exchange Inc said it wants to use the new Murban crude oil futures contract it will launch next year in the United Arab Emirates to expand to other crude grades. "Over time, ICE futures Abu Dhabi - the goal is to start with Murban crude but to expand in a natural way," CEO Jeffrey Sprecher told an energy conference in the UAE capital Abu Dhabi. "We will use Murban as a base to get deeper into Asia, I suspect," he said.
Oil rose about 1% on Tuesday as markets from stocks to bonds to commodities were supported by hopes that U.S. President Donald Trump may signal progress on trade talks with China. Ahead of Trump's speech to discuss the country's trade policy at the Economic Club of New York at noon (1700 GMT), the benchmark Standard & Poor's 500 Index was trading in record territory, a fact the president often points to as a validation of his economic and trade policies. West Texas Intermediate (WTI) crude rose 68 cents, or 1.2%, to $57.54.
(Bloomberg) -- Repsol SA is looking as far away as Western Canada for oil for its European refineries amid dwindling supplies from Mexico and Venezuela.The Spanish oil company is considering using rail to transport as much as half-a-million barrels of heavy crude a month 1,911 miles (3,075 kilometers) from Alberta to Montreal before loading it onto tankers bound for Europe, according to people familiar with the situation. The company has also considered shipping the crude to New Jersey for shipment to Europe.The European company has typically sourced heavy crude supplies from Latin America, particularly Mexico and Venezuela. But U.S. sanctions, as well as civil strife, have crippled Venezuela’s oil production, which has fallen to less than 700,000 barrels a day from more than 2 million four years ago. Mexico’s oil production has fallen for 14 straight years to 1.83 million barrels a day in 2018. That’s left Repsol looking for alternatives.Repsol declined to comment in an email.Repsol’s European refineries hold about 25% of the continent’s coking capacity, according to the company. Coking units allow refineries to process heavier crude, which is typically cheaper than lighter oil, into high-value fuels such as gasoline and diesel.Alberta’s landlocked status means it ships nearly all of its crude oil to the U.S. by pipeline or rail. The Trans Mountain pipeline to the Pacific Coast allows a tiny fraction to be shipped to Asia. The long distance to market has kept Canadian heavy crude selling for less than West Texas Intermediate futures. The discount was more than $20 a barrel on Monday.Shipments of oil sands crude to Europe are rare. Repsol occasionally gets heavy Canadian crude via U.S. Gulf ports, where Canadian oil competes with U.S. crude for sea berths and space on pipelines.About 400,000 barrels of Alberta crude were sent to the U.K. last year, the first significant shipment to Europe since 2014, when a tanker of Alberta crude left a terminal near Montreal for shipment to Italy, according to the Canadian International Merchandise Trade database.Repsol produces conventional heavy crude in west-central Alberta at its Chauvin field.To contact the reporters on this story: Robert Tuttle in Calgary at email@example.com;Lucia Kassai in Houston at firstname.lastname@example.org;Rodrigo Orihuela in Madrid at email@example.comTo contact the editors responsible for this story: David Marino at firstname.lastname@example.org, Mike Jeffers, Kevin OrlandFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The downtrend is pretty clear, but in order to continue to generate the downside pressure, yields must continue to rise, the dollar has to remain strong and demand for equities must continue to strength. This is because there are wildcards out there that could shift investor sentiment fairly quickly.
The German government will not force hard coal power plants to close over the next seven years, a draft law expected to be approved by the cabinet next week showed on Tuesday. The plan not to force hard coal plant closures before 2026 risks making Germany's coal exit more expensive as the government would have to give operators generous financial incentives to shut down facilities voluntarily. The new plan is a reversal for the government, which had stipulated in a previous blueprint that utilities would be forced to deactivate hard coal power plants by 2026 if not enough closures happen voluntarily.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Anglo American Plc dropped another hint that its days of mining the world’s most polluting fuel are limited.In a slew of presentations released for an investor visit to Anglo assets in Australia, thermal coal was noticeably absent from a list of units seen to have long-term potential. The company is on a trajectory away from thermal coal, and will do so responsibly, an Anglo spokesman said.Anglo will decide in the next year if thermal coal fits into its future portfolio, and may be better off selling the assets, RBC Capital Markets said in a note following the presentations.Anglo has spent decades positioning itself as an environmental and social champion, from treatment plans for employees with HIV or tuberculosis, to developing new ways to mine with less water.Yet on thermal coal it risks getting left behind, as investors quickly ratchet up pressure. Rival Rio Tinto Group sold its last coal mines in 2018, making it the first major mining company to go coal-free. BHP Group is looking at options to exit its remaining coal mines in Colombia and Australia. That would leave Anglo with Glencore Plc as the only two Western majors with thermal coal assets.The message from certain investors is clear. Norway’s $1 trillion wealth fund said earlier this year it would stop investing in companies that mine more than 20 million tons a year of thermal coal, a target Anglo would currently miss.Still, the miner has been cutting production in recent years, with output falling from as much as 80 million tons to less than 30 million tons. Today, Anglo lowered its 2021 thermal coal target to 26 million tons from a previous goal of as much as 30 million tons.The company has sold coal mines mines in South Africa, including to Seriti Resources Holdings Ltd., which is planning to build a massive black-owned mining company.“It may be that the assets would be better off in other hands,” RBC analyst Tyler Broda said in the note. “With rising ESG concerns, we would expect Anglo will divest this higher-quality and exports-focused business.”\--With assistance from David Stringer.To contact the reporter on this story: Thomas Biesheuvel in London at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Based on the early price action, the direction of the AUD/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at .6850.
Based on Monday’s close at $56.86, the direction of the December WTI crude oil futures contract on Tuesday is likely to be determined by trader reaction to the main 50% level at $56.81.
US equities recovered well after a feeble start. Markets are struggling as investors struck a cautious chord after a run of not so convincing headlines from the US administration suggested last weeks optimism on the US-China trade talks might have been premature. But with the US market closed for Veterans day, there hasn’t been a lot of traffic overnight either.
Oil prices rose on Tuesday, reversing early losses on hopes that U.S. President Donald Trump may signal progress on trade talks with China in a speech later in the day. Brent crude futures were up 31 cents, or 0.5%, at $62.49 a barrel by 0644 GMT, after dipping to as low as $61.90 earlier in the day. U.S. West Texas Intermediate (WTI) crude was up 23 cents, or 0.4%, at $57.09 a barrel, having fallen to $56.55.
Malaysian palm oil futures rose for a third consecutive session as the country's output in October unexpectedly dropped, while gain in rival oils aided sentiment. The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was up 0.6% at 2,642 ringgit ($638.47) in early trade. The contract rose to a near two-year high in the previous session at 2,657 ringgit a tonne.
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also...
Oil prices steadied after rising about 1% on Tuesday following a speech from U.S. President Donald Trump that offered few new details about Washington's trade talks with Beijing. Concerns about slower economic growth and oil demand due to the fallout from the 16-month trade dispute between the world's two biggest economies have weighed on crude futures. Brent crude futures, the global benchmark, was down 1 cent to $62.17 a barrel by 12:40 p.m. ET (1740 GMT).
Investing.com - Oil prices rebounded on Tuesday in Asia after falling in the previous session amid uncertainty over Sino-U.S. trade progress.
(Bloomberg Opinion) -- You could smell the approach of Sydney’s bushfires two weeks away.Leaving my home for work last month at a time when California’s fires were at their most intense, the sandalwood odor of burning eucalyptus was heavy on the air. Looking north from Bloomberg’s office to the far side of Sydney Harbour, the normally sparkling blue water was a barely discernible smudge. That was mostly not wildfire, but a dozen deliberate hazard-reduction burns under way across the metropolitan area in a last-ditch attempt to eliminate flammable plant litter and undergrowth before conditions worsened.Tuesday will prove a test of how effective that has been. Sydney’s entire metropolitan area and a swathe of country in the Hunter Valley to the north and Illawarra to the south will face catastrophic fire danger, the highest risk rating in New South Wales state, thanks to strong winds combined with temperatures up to 37 degrees centigrade. Already, three are dead and 150 homes have been destroyed by fires elsewhere in New South Wales and Queensland state to the north.Prime Minister Scott Morrison has been determined not to link the disasters to the country’s fractious climate and energy debate. Asked what his response would be to a couple who’d had to flee their homes and wanted to know what he was doing about climate change, he deflected.“I'll give the same answer I gave yesterday, and that is I'm focused on the needs of the people in this room today,” Morrison told reporters at a bushfire evacuation center. Gladys Berejiklian, the premier of New South Wales, had the same response: “We have time on our hands to talk about those other issues,” she said.This practiced reply — an Australian equivalent to the “thoughts and prayers” mouthed by American politicians after gun-violence episodes — may be hard to maintain given the area at greatest risk.The Hunter Valley is the world’s largest export basin for thermal coal used in power stations. The Illawarra escarpment contains Australia’s oldest mines for coking coal used in steelmaking. This region was built on coal, which overtook iron ore to become the country’s most valuable export last year. Electoral seats in the Hunter, one of the few parts of Australia where coal is a major employer, swung heavily toward Morrison’s government in the country’s May election.Australia’s climate debate is fraught, but it would be a whole lot more fraught if the country faced up to the scale of its responsibility. The country, with a population little larger than 25 million, likes to think of itself as a minor player on the global stage. “Australia is responsible for just 1.3% of global emissions,” Morrison told the United Nations General Assembly last month.That argument is only tenable if you exclude the country’s exports from the equation. Australia is the world’s largest fossil fuels exporter after Russia and Saudi Arabia. The coal and natural gas the government expects to be shipped in 2024 will produce about 1.2 billion tons of carbon dioxide when burned, a larger emissions total than any nation except China, the U.S., India, Russia and Japan.The exclusion of exports is, to be sure, standard in international carbon budgeting, which typically counts only emissions within a country’s borders toward its total. But even Australia’s ability for doublethink may be challenged by the sight of a government that’s aggressively trying to revive coal exports touring mining regions devastated by bushfires — events that will become more frequent and devastating as a result of climate change.Neither the government nor the Labor opposition would countenance interfering with the export trade. Indeed, all the movement is in the opposite direction. Just last month, the Berejiklian government introduced a bill to ensure that the agency granting planning approval to new mining and petroleum projects couldn’t consider overseas greenhouse impacts as part of its environmental assessments. Climate change impacts could make existing homes uninsurable and temperature increases above 2 degrees centigrade may push some areas “beyond affordability or indeed habitability,” Insurance Australia Group Ltd. warned this year. As many as one in 20 homes could be rendered uninsurable by 2100 from natural disaster risk, according to a report by Australian Broadcasting Corp. last month.Australians should understand what is happening. Government rhetoric isn’t just words, and its effects aren't just theoretical. A mass transfer of wealth is under way. For the sake of the small sum that comes into government coffers as mining royalties and taxes, politicians are doing everything to support activities that push more carbon into the atmosphere.The consequence will ultimately be borne by local households, who will see rising costs for insurance and fire-resistant renovation, falling property values as fire-prone lands extend their reach, and ultimately the threat of destruction and even death when the inferno comes.To contact the author of this story: David Fickling at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Despite coal’s collapse in North American and European power generation sectors, the fuel continues to get traction in large parts of South-East Asia
The crude oil markets pulled back a bit during the early hours on Monday, as we had seen a bit of a pullback due to fears about the US/China trade talks yet again.
Iranian President Rouhani announced a major oil discovery of more than 50 billion barrels, but didn’t mention any details on how fast the field will begin to be developed
The annual report by OPEC that reviews and forecasts every corner of the world's oil producing and consuming sectors should be read with happiness by anybody who needs to buy fuel... including truckers. OPEC's World Oil Outlook is one of several 100-plus page reports that are published every year by a variety of leading energy concerns – the International Energy Agency, ExxonMobil and so on. The authors who put it together can review the upcoming major oil projects around the world that have been announced and they can do the same with refinery projects.
Low oil prices are taking a toll around the world. In the midst of all the fanfare around Saudi Aramco’s imminent stock market debut, it’s easy to overlook just how tough the environment is in the energy business right now. The world’s most profitable company took another major step this weekend toward what could be the world’s largest initial public offering.