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Based on the early price action and Thursday’s close at 26225, the direction of the September E-mini Dow Jones Industrial Average on Friday is likely to be determined by trader reaction to the short-term 50% level at 26215.
Based on the early price action, the direction of the September U.S. Dollar Index on Friday is likely to be determined by trader reaction to the Fib level at 98.030.
China's coal demand will start to fall in 2025 once consumption at utilities and other industrial sectors reaches its peak, a state-owned think tank said in a new report, easing pressure on Beijing to impose tougher curbs on fossil fuels. The world's biggest coal consumer is expected to see total consumption fall 18% from 2018 to 2035, and by 39% from 2018 to 2050, the CNPC Economics and Technology Research Institute, run by the state-owned China National Petroleum Corp (CNPC), forecast in a report on Thursday. Cutting coal consumption and replacing it with cleaner energy like natural gas and renewables has been a key part of China's energy strategy, but it has continued to approve new mines and coal-fired power plants and support new projects overseas.
Oil prices steadied on Friday, on track for a weekly gain, with attention focused on a speech by U.S. Federal Reserve chief Jerome Powell for news on whether it will cut interest rates for a second time this year to boost the world's largest economy. Brent crude futures, the international benchmark for oil prices, fell 8 cents to $59.84 a barrel by 0952 GMT but was up about 2.1% on the week. U.S. West Texas Intermediate (WTI) crude futures slipped by 3 cents to $55.32, up 0.8% this week.
Low liquefied natural gas (LNG) spot prices amid abundant supply and weaker Asian spot demand this year have created the perfect buying opportunity for European gas buyers
The Jackson Hole symposium started on Thursday and although there were no speeches, which appears clear is that the Fed is unlikely to ease rates substantially. Gold prices moved sideways and appear to be forming a topping pattern. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.
The crude oil markets continued to show bearish pressure, as we have fallen on Thursday. This should not be much of a surprise considering the breakdown that we had later in the day on Wednesday.
The British pound took off to the upside during the trading session on Thursday as we pierced the 1.2250 level early in North American trading as Boris Johnson speaks in France. Ultimately, this is probably much to do about nothing.
Based on the early price action, the direction of the December Comex gold futures contract into the close is likely to be determined by trader reaction to the pivot at $1517.50.
The S&P500; closed up over the key 20-day moving average for the first time in 16 trading days. What does this mean for the world’s most important equity market?
The Canadian dollar edged higher against its U.S. counterpart on Thursday, adding to the previous day's gains, as oil prices increased and investors awaited the Federal Reserve chairman's speech. The price of oil, one of Canada's major exports, rose on a drop in U.S. crude inventories and OPEC-led supply cuts, although worries about the global economy capped gains. U.S. crude oil futures were up 1% at $56.11 a barrel.
Russian state oil major Rosneft has become the main trader of Venezuelan crude, shipping oil to buyers in China and India and helping Caracas offset the loss of traditional dealers who are avoiding it for fear of breaching U.S. sanctions. Trading sources and Refinitiv Eikon data showed Rosneft became the biggest buyer of Venezuelan crude in July and the first half of August. It took 40% of state oil company PDVSA's exports in July and 66% so far in August, according to the firm's export programs and the Refinitiv Eikon data, double the purchases before sanctions.
OPEC's share of the global oil market has sunk to 30%, the lowest in years, as a result of supply restraint and involuntary losses in Iran and Venezuela, and there is little sign yet producers are wavering on their output-cut strategy. Crude oil from the Organization of the Petroleum Exporting Countries made up 30% of world oil supply in July 2019, down from more than 34% a decade ago and a peak of 35% in 2012, according to OPEC data. The decline in prices, should it persist, and erosion of market share could raise the question of whether continued supply restraint is serving producers' best interests.
Shares in the London-listed oil company, which has struggled with its debt pile in recent years, were up 5% as of 0909 GMT following the news. The company reported a 10.4% rose in oil and gas output to 84,100 barrels of oil equivalent per day (boepd) in the first half of the year. Premier said it launched the sale process for its 25% stake in the Zama field in Mexico after raising its resource estimate in June.
(Bloomberg) -- The current quarter will be key in shaping the oil supply/demand balances for 2019, according to the latest outlooks from the world’s three major oil-forecasting agencies. If the big inventory draws they expect fail to materialize, OPEC’s goal of pulling down excess stockpiles will be delayed again.The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all see the biggest oil inventory draws for the year happening now, during the period of peak demand and before non-OPEC supply surges seasonally, as the summer maintenance season at fields in the Northern Hemisphere comes to an end.There are big differences between the ways the three agencies(3) see the global oil supply/demand balance evolving this year. OPEC is much more bullish than either of the others about the size of the stockdraw that we can expect. The producer group now sees global stockpiles falling at an average rate of 780,000 barrels a day in 2019, driven by a draw of more than 2 million barrels a day in the third quarter. The EIA sees inventories coming down by a much more modest 100,000 barrels a day, while the IEA sees a tiny build over the course of the whole year.Assessments of non-OPEC supply growth explain part of the difference. While all three agree that non-OPEC oil production will grow during 2019, OPEC is alone in seeing that growth heavily weighted to the fourth quarter, with the IEA and EIA both seeing much steadier growth over the course of the year. Some of the differences are hard to reconcile, as assessments of oil production in the first quarter of the year should be pretty reliable by now. Things are about to get a lot more difficult for the producer group – at least that’s the view of its own analysts. While non-OPEC oil supply is set to increase by more than 1.7 million barrels a day between the third and fourth quarters, demand will rise by a much more modest 220,000 barrels a day. Inventories need to be falling fast now if we are to avoid a huge build towards the end of the year.It is not only on the supply side of the balance where differences are apparent, though. Although all three agencies now see global oil demand increasing by a little more than 1 million barrels a day this year, the routes they have taken to arrive at their current estimates are very different. OPEC, which began the year as the most pessimistic of the three on global oil demand growth is now the most optimistic, having cut its forecast much less than either the IEA or the EIA. That could be evidence that the producer-group’s analysts had a better read on the situation well ahead of their counterparts in the oil-consuming countries. But there are some worrying details in the quarterly assessments that suggest the OPEC forecast may have further to fall. While both the IEA and the EIA have slashed their demand growth figures for the first and second quarters, OPEC’s have hardly moved. The IEA and EIA have also started to cut their estimates for oil demand growth in the current quarter, leaving OPEC alone in maintaining its estimate at 1.24 million barrels a day.If OPEC is forced to follow suit and start cutting its own estimates of third-quarter oil demand growth, that big stock draw that it sees helping to drain excess inventories this year will begin to erode. OPEC and its non-OPEC partners will need to do more.OPEC oil production is already down year on year by more than 2 million barrels a day, according to secondary source data compiled by OPEC. All of that can be accounted for by the involuntary cuts that have been forced on Iran and Venezuela. Saudi Arabia’s voluntary output cut of 665,000 barrels a day between July 2018 and July 2019 has been entirely offset by higher production from Libya, Iraq and Nigeria.OPEC members will be hoping that their analysts have gotten it right and that they have done enough to drain global stockpiles at a rate of 2 million barrels a day this quarter. Ministers from the OPEC+ group will be gathering in Abu Dhabi next month to assess the progress of their cooperation. If their analysts are wrong, it could be a gloomy meeting. (1) This story draws on data from the IEA and OPEC's latest monthly reports and the EIA’s monthly Short-Term Energy Outlook.To contact the author of this story: Julian Lee in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Brian Wingfield at email@example.com, Steve VossFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Premier Oil will announce a second reserves upgrade for its Catcher oilfield in the North Sea at the end of the year, Chief Executive Officer Tony Durrant told Reuters on Thursday. The field has reached a plateau production rate of 70,000 barrels of oil equivalent per day, Durrant said in a telephone interview after Premier reported a rise in first-half profit.
Australian miner South32 said it was in “exclusive talks” to sell its South African coal mines to local miner Seriti Resources. The offer includes a “modest” up-front cash payment with a deferred payment mechanism to allow both companies to share in any coal price increase, the Australian miner said. The world’s largest mining companies are under growing pressure to sell their thermal coal assets because of coal’s contribution to global warming.
When filling-up at the pump this fall, U.S. motorists are projected to find savings of more than 25 cents compared to the summer, AAA says.
Crude oil imports into the world's third-largest consumer declined 1.2% from a year earlier to 19.34 million tonnes, but increased 14.6% from the previous month. Petrol imports rose to 230,000 tonnes in July, the highest since PPAC data going back to 2011. Government data published earlier this month showed sales of gasoline, or petrol, were 8.8% higher from a year earlier at 2.52 million tonnes.
Oil prices weakened on Thursday on worries about the global economy and as equity markets were on edge over the uncertain outlook for U.S. interest rate cuts. Traders are awaiting a speech from Federal Reserve Chair Jerome Powell on Friday in Jackson Hole, Wyoming, that could indicate whether the U.S. central bank will continue to cut interest rates. "The market will be shifting focus today to broader based macro headlines with comments out of Jackson Hole likely to be prioritised in this regard," said Jim Ritterbusch, president of Ritterbusch and Associates.
New U.S. oil production is set to account for the vast majority of new crude supply as consolidation in the large basins, led by oil majors, ensures that drilling will continue at a steady pace