59.21 0.00 (0.00%)
After hours: 4:17PM EDT
|Bid||59.26 x 900|
|Ask||59.99 x 1800|
|Day's Range||58.69 - 59.44|
|52 Week Range||57.21 - 88.70|
|Beta (3Y Monthly)||1.55|
|PE Ratio (TTM)||6.51|
|Forward Dividend & Yield||5.55 (9.38%)|
|1y Target Est||N/A|
(Bloomberg) -- Crude fell for a second day amid a weakening global growth outlook and abundant crude supplies in the world’s largest economy.Futures slid 1.5% in New York on Tuesday. Hopes for a resolution of key issues in the U.S.-China trade dispute are fading, souring prospects for a revival in energy demand. Meanwhile, the International Monetary Fund cut its 2019 global growth forecast for a fifth time.“There are still U.S.-China trade talks and demand concerns” that are weighing on the market, said Michael Hiley, head of OTC energy trading with LPS Partners.Aside from the U.S.-China trade war, investors are also focused on supply increases in the U.S. The Energy Information Administration sees crude output at major shale plays across the U.S. rising 58,000 barrels a day to 8.97 million barrels a day in November.West Texas Intermediate for November delivery fell 78 cents to settle at $52.81 a barrel on the New York Mercantile Exchange.Brent crude for December settlement inched down 61 cents to end the session at $58.74 a barrel on the London-based ICE Futures Europe Exchange, and traded at a premium of $5.86 to WTI for the same month.Beijing wants a rollback in tariffs in its trade war with the U.S. before China can feasibly agree to buy as much as $50 billion of American agriculture products that President Donald Trump claims are part of an initial deal, people familiar with the matter said.Meanwhile, in the U.S., crude inventories probably rose for a fifth straight week. That would be the longest stretch of increases since February. Analysts in a Bloomberg survey see stockpiles increasing 3 million barrels. The Energy Information Administration is scheduled to release its weekly inventory report on Thursday.“The market has plenty of supply in the short-term,” said Phil Flynn, senior market analyst at Price Futures Group Inc. in Chicago. Investors are “expecting a big increase in supply this week because the refinery runs are so low.”\--With assistance from Sheela Tobben.To contact the reporter on this story: Jacquelyn Melinek in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Jessica Summers, Mike JeffersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- China’s biggest refiner plans to reduce operations from next month after a surge in the cost of shipping crude eroded margins, according to people with knowledge of the matter.Freight rates have skyrocketed since the U.S. announced sanctions on Chinese shipowners in late-September, triggering a flight from vessels owned by affected companies and a bidding war for alternative tankers. That’s driven up the cost of importing crude and is cutting into the profits made from refining.Sinopec Corp. is looking to start cutting run rates from November, according to the people, who asked not to be identified as information is private. The company could reduce total processing by one million tons of oil in December, the equivalent of about 5% of the company’s refining, according to one of the people. An external spokesperson for the company declined to comment.See also: Dilemma for Oil Refiners as Surging Ship Costs Kill MarginsThe decision by Sinopec -- China’s top refiner by capacity -- comes at a time when Asian processors would typically be increasing run rates to cope with higher fuel demand from winter and holiday consumption. The surge in oil-procurement costs has far outweighed an expected boost in margins toward the end of 2019 due to cleaner ship-fuel rules that take effect on Jan. 1.“Such a dramatic surge in freight rates is unprecedented,” said Li Li, an analyst at Shanghai-based commodities researcher ICIS-China. “It’s something that most market observers have never seen before, and it’s leading to widespread panic.”The cost of chartering a supertanker from the Arabian Gulf to China surged fivefold since late-September, according to Baltic Exchange data, as sanctions on units of companies including COSCO Shipping Energy Transportation Co. prompted cancellations and replacements. Booking a tanker for the West Africa to China route rose to $10 a barrel -- which adds almost 20% to the price of oil -- from about $2.50 before the sanctions.Sinopec, which operates complex refineries along China’s coast, the Yangtze River and in North China, imports oil from all the major producing regions. Higher freight rates are set to have a bigger impact on longer-haul shipments.The rising transport costs may prompt refiners to tap existing inventories as they reduce spot purchases. Indian Oil Corp. has been forced to reduce spot imports, while Hindustan Petroleum Corp. has raised concerns about the impact of shipping rates on the company’s procurement plans and profits.“The decision by Sinopec could contribute some bullishness to the Asian fuels and oil-products market,” ICIS-China’s Li said. “Particularly if more refiners across the region follow suit.”(Adds charts and analyst comments in 5th and last paragraph)\--With assistance from Alex Longley.To contact the reporters on this story: Alfred Cang in Singapore at firstname.lastname@example.org;Sharon Cho in Singapore at email@example.com;Serene Cheong in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Serene Cheong at email@example.com, Alexander Kwiatkowski, Andrew JanesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing in small cap stocks has historically been a way to outperform the market, as small cap companies typically grow faster on average than the blue chips. That outperformance comes with a price, however, as there are occasional periods of higher volatility. The last 12 months is one of those periods, as the Russell 2000 […]
U.S.-listed Chinese stocks have taken a beating in the past six months, with the iShares FTSE/Xinhua China 25 Index (NYSE: FXI ) down 11.8% overall in that time. Fears over the negative economic impact ...
What will today's political games bring tomorrow or the day after? It's far from clear, to say the least. But for Chinese stocks Baidu (NASDAQ:BIDU), New Oriental Education (NYSE:EDU) and JD.com (NASDAQ:JD), the price charts are offering promising entries for investors willing to ignore headline threats in favor of risk-adjusted opportunities. Let me explain.They're pawns in a politically heated game where the rules of engagement are blurry at best. I'm referring to U.S.-listed Chinese stocks. As most investors are aware, the international trade war has negatively impacted the Asian giant's economy over the past couple of years and proven a foe for bullish investors in many of the country's largest companies.Diversified tech giant Alibaba Group (NYSE:BABA) and large-cap energy producer China Petroleum (NYSE:SNP) certainly haven't been immune. Since hitting highs in 2018, those titans of industry are off 20% and 37% respectively. And then there's a difficult 25% drop for the very popular iShares China Large-Cap ETF (NYSEARCA:FXI) market barometer.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow this political back-and-forth between the U.S. and China has added another layer of uncertainty to Chinese stocks. Over the past couple weeks, the President Donald Trump administration has hinted it's considering a forced delisting of publicly traded stocks domiciled in China. * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? To be clear, there is no clarity on how this politically driven move might play out -- or how it might even be accomplished. And many argue whether it's really in the U.S.' best interests to consider going down this road. Bottom line, though, away from the "will he or won't he" headlines driving volatile day-to-day price action in Chinese stocks, shares of BIDU, EDU and JD stock have caught our eye on the price charts. They are names which are in friendly positions for bulls and bears in the weeks and months ahead. Chinese Stocks: Baidu (BIDU)Known to many as China's answer to Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) due to its search business and broad reach in other technologies (like autonomous vehicles), BIDU stock is the first of our Chinese stocks to buy. Shares of Baidu have had a tough go due to company-specific issues over the last couple years. But many of those difficulties look to be in the rearview mirror after the company released its last earnings report.What's more, the pressure and price action add up to a below-the-market price multiple opportunity in a name still poised for growth.The price chart in BIDU stock also looks supportive for a turnaround in shares. The monthly view has Baidu stock setting up as an undercut variation of the classic double-bottom pattern. Combined with a "modest" failure of the closely watched 62% Fibonacci support, the possibility of a powerful intermediate low is raised in our technical assessment. The BIDU Stock TradeFor this Chinese stock, I'd suggest waiting for monthly chart confirmation of a pattern low. Waiting until a move above $116 looks like a solid buying strategy. That entry narrowly clears the high of the September pivot bottoming candlestick. This purchase also allows BIDU stock to reclaim the 62% level and should help drive additional buying pressure from bears positioned out of a smaller flag pattern.Along with our next two trade candidates, I'd also recommend a bull call spread in BIDU. It's a safer way to gain exposure in shares given today's volatile trading environment for Chinese stocks. New Oriental Education (EDU)New Oriental Education is another company to consider buying. EDU stock is well-known to growth investors and for good reason. Not only does this prep and online educational services outfit sport double-digit growth, after a significant 50%-plus correction in 2018 shares have been a rare bird within the universe of Chinese stocks as EDU continues to challenge fresh all-time-highs.Currently EDU is forming a tight triangle that's entering its third month of consolidation. With the pattern developing on either side of EDU's former highs, there's solid evidence this platform will lead to a breakout and another large rally into 2020. The EDU Stock TradeFor this Chinese stock, look to buy a slightly out-of-the-money intermediate-term bull call spread. But wait to see if EDU shares can stage a breakout above pattern resistance in the coming days or weeks. JD (JD)JD.com has been likened to Amazon (NASDAQ:AMZN) by many investors due to its online retail presence and growing logistics and services businesses. Technically speaking, JD stock is one which could be setting up for either bears or bulls.The monthly chart of this Chinese stock shows two head-and-shoulder patterns. The smaller formation played out well for bears as shares broke neckline support in 2018 and proceeded to tumble by roughly 40% before forming a triple bottom below $20. But the worst may be yet to come. A larger head-and-shoulders formation has developed over the entirety of JD stock's time as a publicly listed company. Ultimately, a breakdown beneath triple-bottom support would confirm a failure of the large pattern's neckline.Alternatively, with JD stock's right shoulder having formed a pivot high against the smaller neckline and 38% retracement level, a failure or upside breakout could be a huge buy signal for shares. A broken pattern can be powerful motivators for new money to come in. Then a bullish phase could begin. The JD Stock TradeWith shares stationed much closer to a pattern failure than confirmation, if JD can clear the August high of $32.28, a buy entry could be close at hand. Still, bears do have the benefit of the developing bearish head-and-shoulders formation. Either way, respecting the price chart to enter and exit and make any long or short positions a more ironclad proposition using JD stock's options market is advised.Investment accounts under Christopher Tyler's management do not currently own positions in securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post Friend or Foe? 3 Chinese Large-Cap Stock Charts to Trade appeared first on InvestorPlace.
Hedge funds and other investment firms run by legendary investors like Israel Englander, Jeffrey Talpins and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to […]
(Bloomberg) -- Saudi Aramco sought to underpin the targeted $2 trillion valuation for its initial public offering by increasing dividends, paying less tax and finding cornerstone investments from major Asian oil producers.The moves, which came as the state-run company said it had restored all output halted by attacks on its main crude-processing facility last month, show preparations are accelerating for the listing, with the aim of offering shares on the Saudi bourse as soon as November.The IPO is the centerpiece of Crown Prince Mohammed Bin Salman’s plans to revamp the Saudi economy and release billions in capital for the kingdom’s sovereign wealth fund. The efforts to make Aramco a more appealing investment and guarantee demand for shares come amid skepticism that the prince’s valuation is attainable.Should the kingdom meet that target, the proposed payout of $75 billion next year would still leave dividend yields below those already offered by competitors like Exxon Mobil Corp. and Royal Dutch Shell Plc. While Aramco is the world’s most profitable company and produces about 10% of the world’s oil, it also carries greater risks, as illustrated by the drone and missile strike on key facilities in September.Growing DividendsThe 2020 payment is part of plan for a growing, progressive dividend to investors, according to a corporate presentation posted on the company’s website on Monday.Dividends of $75 billion would give investors a yield of 3.75% if the company achieves its $2 trillion valuation. Although a decent payout in a low-interest rate world, it’s a lower dividend than other Big Oil firms: investors in Shell receive 6.22%, while Exxon pays out 4.9%, according to data compiled by Bloomberg.Equity investors will also receive only slightly higher returns than bond investors -- the yield on the company’s 2029 bond is about 3%.Aramco could boost the dividend still further with one-time rewards to shareholders. It paid out a $20 billion special dividend in the first half of the year on the back of an “exceptionally strong financial performance” in 2018, the company said in August, though that payment caused its cash pile to drop markedly.In a bid to reassure potential investors, the company also said that if the total dividend falls below $75 billion between 2020 and 2024 it will prioritize payouts to non-government shareholders.Cornerstone InvestorsAramco has approached Asian state oil producers including Malaysia’s Petroliam Nasional Bhd., Sinopec Group and China National Petroleum Corp. about potential cornerstone investments in the IPO, people with knowledge of the matter said. The Gulf energy giant and its advisers have also reached out to China’s sovereign wealth fund and state-owned entities from the United Arab Emirates and Kuwait, including Abu Dhabi sovereign fund Mubadala Investment Co., as well as Canadian pension funds, the people said, asking not to be identified because the talks are private.To read more about Aramco’s existing ties with major Asian producers, click here.Deliberations are at a preliminary stage, and Aramco hasn’t yet received any firm commitments, the people said. Aramco’s advisers are arranging meetings with some potential investors this week and next week, according to the people. The funds could decide against buying into the offering, they said.Aramco is leaning on business partners and friendly governments to help achieve its preferred valuation even after oil prices fell more than 25% over the past year. It’s casting a wide net to attract enough demand as it accelerates preparations for the listing in Riyadh. An original plan to list the company on an international exchange at the same time was dropped last year after international investors balked at the valuation.Tax ChangesThe third plank of Aramco’s pitch to investors was a changed schedule for royalty tax on oil production. Payments will be lower when oil is below $70 a barrel, but higher above that level.Under a new royalty structure effective from January, Aramco will pay 15% for Brent prices up to $70 a barrel, 45% for Brent prices between $70 a barrel and $100 a barrel, and 80% on Brent prices above $100 a barrel. The current tax regime, introduced in January 2017, started at 20% and peaked at 50%.The new royalty structure will be a significant boost at today’s oil prices -- it’s equivalent to about $3 a barrel on each of the 9.9 million barrels the company produces daily.To contact Bloomberg News staff for this story: Matthew Martin in Dubai at firstname.lastname@example.org;Anthony DiPaola in Dubai at email@example.com;Elffie Chew in Kuala Lumpur at firstname.lastname@example.org;Vinicy Chan in New York at email@example.com;Steven Yang in Beijing at firstname.lastname@example.org;Matthew Monks in New York at email@example.com;Jasmine Ng in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Will Kennedy at email@example.com, James Herron, Christopher SellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") announced today that the proposed changes by Trafigura Securitisation Finance PLC will not, in and of itself and at this time, cause the current Moody's ratings of the debt issued by the Issuer to be reduced or withdrawn.
The Zacks Analyst Blog Highlights: Celgene, Sinopec, HSBC, Vertex Pharmaceuticals and Prudential Financial
Zacks.com featured highlights include: Universal Forest Products, Fossil, Hibbett, China Petroleum and Principal Financial
SINGAPORE/NEW DELHI (Reuters) - Unipec is reselling some U.S. crude oil meant for China to buyers in India and South Korea after Beijing imposed a tariff on U.S. oil amid escalating trade tensions with Washington, three sources with knowledge of the matter said on Thursday. Unipec, trading arm of Asia's top refiner China Petroleum & Chemical Corp, or Sinopec, is China's main importer of U.S. crude, but its imports have been disrupted after Beijing imposed a 5% tariff on U.S. crude from Sept. 1.
Oil prices rallied slightly at the start of the week on the back of what many consider false hope of a trade war de-escalation and a thawing of tensions between the U.S. and Iran.
China Petroleum & Chemical Corp, or Sinopec, is seeking a tariff exemption for U.S. oil being imported in coming months, sources familiar with the matter said, after Beijing late last week imposed retaliatory tariffs on U.S. goods, including crude oil. The largest refiner in Asia is expected to receive four supertankers carrying 8 million barrels of U.S. crude at Tianjin in September and October, according to the sources, data from analytics companies Refinitiv and Kpler.
As U.S. sanctions continue to weigh on Iran’s oil sector, Tehran is courting two countries with a rocky relationship with Washington to secure new investments
SINGAPORE/TOKYO (Reuters) - A massive surge in China's manufacturing capacity for paraxylene, a petrochemical used to make textile fibres and bottles, could force leading exporters in Japan and South Korea to cut production as early as the second quarter of 2020. China will add about 10 million tones of paraxylene manufacturing capacity from March 2019 to March 2020, according to company reports and officials, that is enough for making 22 trillion 500-millilitre plastic bottles. The world's top consumer of paraxylene (PX), China imports 60% of its need for the chemical to feed polyester demand that has more than doubled since 2010.
Moody's Investors Service has assigned an A1 senior unsecured rating to the USD senior unsecured notes to be issued by Sinopec Group Overseas Development (2018) Limited and guaranteed by its parent, China Petrochemical Corporation (Sinopec Group, A1 stable). Proceeds from the notes will be used to refinance Sinopec Group's existing indebtedness and for general corporate purposes. The A1 rating on the notes reflects the irrevocable and unconditional guarantee from Sinopec Group.
While China's efforts to increase output may offset production decline from aging oilfields, it is not likely to reduce its dependence on foreign oil and gas imports.