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Showing posts with the label Energy

Business | Energy: Spies, satellites, subpoenas: soy buyers play hardball with Brazilian farmers by Reuters. Ana Mano 7-9 minutes Global grains merchants are using satellites and spies to surveil Brazil’s soybean heartland and deploying an army of lawyers to ensure farmers deliver promised crops instead of finding a different buyer at prices that have doubled since deals were made. At stake are billions of dollars and the sanctity of crop contracts in Brazil, the world's top soy exporter accounting for roughly 50% of the global trade. Soybeans have rallied to an eight-year high and Brazil soy exports have soared in particular, especially to China, which needs feed to rebuild a pig herd devastated by African Swine Fever. If farmers deliver, traders make the profits. If farmers can break their deals, they could double their income. The disputes have tested a somewhat informal business culture in rural Brazil. Farmers say traders are demanding delivery even when no contracts were signed. There are

Energy | Oil Price Report: Oil jumps more than 2% on optimistic inventory data

  3-4 minutes - Source: CNBC The silhouette of an oil pump is seen at sunset. Pramote Polyamate | Getty Images Oil prices erased losses and closed higher on Wednesday following optimistic inventory data. However, worries over rising coronavirus cases heading into the northern winter would lead to further restrictions on activity and curb demand for fuel capped gains. The U.S. Energy Information Administration said Wednesday that inventory for the week ending Sept. 25 declined by 2 million barrels. According to estimates from FactSet, analysts had expected a 400,000 barrel build.  West Texas Intermediate settled 93 cents, or 2.37%, higher at $40.22 per barrel.  Brent crude fell 8 cents to $40.95 per barrel. The benchmarks fell more than 3% on Tuesday as global Covid-19 cases passed 1 million, having doubled in three months. “The resurgence in Covid-19 cases more recently in some regions, is clearly not great for market sentiment,” ING Economics said in a

Energy | Oil Price Report: Oil slides more than 3% as virus cases mount

  2-3 minutes - Source: CNBC Oil pumping jacks, also known as “nodding donkeys”, operate in an oilfield near Almetyevsk, Tatarstan, Russia, on Wednesday, March 11, 2020. Andrey Rudakov | Bloomberg via Getty Images Oil prices on Tuesday fell more than 3%, although closed off their lowest levels of the day, on worries about the outlook for fuel demand as Europe and the United States grappled with a surge in new coronavirus infections. Stock and commodities investors remained cautious ahead of the first U.S. presidential debate between Democrat Joe Biden and Republican Donald Trump later on Tuesday. The energy market was also waiting for weekly updates on U.S. crude stockpiles from the American Petroleum Institute (API) on Tuesday and the Energy Information Administration (EIA) on Wednesday. Analysts polled by Reuters forecast U.S. crude inventories increased 1.6 million barrels last week. On its second to last day as the front-month, Brent futures for

Energy | Oil Price Report: Oil edges higher, but demand fears cap upside

  3 minutes - Source: CNBC A view of the Marathon Petroleum Corp’s Los Angeles Refinery in Carson, California, April 25, 2020. Robyn Beck | AFP | Getty Images Oil rose on Tuesday, paring sharp overnight losses, as the latest tropical storm in the Gulf of Mexico lost strength, but worries about fuel demand persisted with flare-ups around the globe in coronavirus cases. Brent crude futures rose 27 cents, or 0.65%, to $41.71 a barrel. U.S. West Texas Intermediate crude futures for October, due to expire on Tuesday, rose 29 cents, or 0.74%, to settle at $39.60 a barrel. Crude prices, which fell about 4% on Monday, steadied as Texas refineries stayed open despite forecasts of heavy flooding, with Tropical Storm Beta expected to keep losing strength, allaying worries about U.S. refinery demand for feedstock. “The recovery in sentiment after the rout in risk assets seen a fortnight ago was clearly fragile,” said Vandana Hari, energy analyst at Singapore-bas

News | Business | Energy | Companies: BP reports second-quarter loss after major write downs, halves dividend

Sam Meredith 5-6 minutes - Source: CNBC A BP company logo at a gas station in London, U.K. Chris Ratcliffe | Bloomberg | Getty Images Energy giant BP  reported a significant loss for the second quarter on Tuesday, after downgrading the value of some of its assets on expectations of lower commodity prices. Second-quarter underlying replacement cost profit, used as a proxy for net profit, came in at a loss of $6.7 billion, meeting expectations of analysts polled by Refinitiv. That compared with a net profit of $800 million in the first quarter of the year. BP also announced that it had halved its dividend to 5.25 cents per share for the quarter, compared to 10.5 cents per share for the first three months of the year. The reported loss for the quarter was $16.8 billion, which includes a post-tax charge of $10.9 billion for non-operating items. It compares to a loss of $4.4 billion over the first three months of 2020. The b

Oil Futures: Oil futures contract expiring Tuesday dives 40%, touches 34-year low

Eustance Huang,Pippa Stevens 5-6 minutes - Source:  CNBC U.S.  crude  prices plunged to their lowest level in more than 30 years on Monday as traders continue to fret over a slump in demand due to the  coronavirus  pandemic. The price of the nearest oil futures contract, which expires Tuesday, was the hardest hit, detaching from later month futures contracts with a drop of more than 30%. This suggests that some believe there could be a recovery later in the year. West Texas Intermediate  crude for May delivery tanked 42.2%, or $7.75, to $10.52 per barrel. At the session low WTI traded at $10.01, its lowest level since at least April 1986. Meanwhile, international benchmark  Brent crude  traded 5.5% lower at $26.53 per barrel. The June WTI contract, which expires on May 19, fell more than 9% to $22.70 per barrel. The July contract was roughly 5% lower at $28 per barrel. The front part of the oil futures ‘curve,’ which is the May contract that expires on Tuesday, was

Energy | Oil News: Energy Saudi Arabia Insisted Aramco Was Worth $2 Trillion. Now It Is.

By Stanley Reed 4-5 minutes - Source: NYT On their fourth trading day, shares closed with a value that eluded the oil company before its initial public offering. Storage tanks at a plant operated by Aramco in Jeddah, Saudi Arabia. The Saudi government began selling shares in the company last week. Credit...Amr Nabil/Associated Press Dec. 16, 2019 Saudi Aramco, the world’s biggest oil company, ended trading on Monday with a market value of over $2 trillion, a worth that had eluded it when it took its shares public. Shares in the company closed at 38 riyals, or about $10.13, giving the company a valuation of $2.03 trillion on the Saudi exchange. The company made its market debut on Wednesday at a value of $1.88 trillion. Resistance from global investors and Western advisers forced the company’s leadership to settle for a valuation below the target of $2 trillion set by the kingdom’s chief policymaker, Crown Prince Mohammed bi

Energy | Oil News: Deeper oil cuts and stricter compliance top agenda as OPEC+ gathers in Vienna

Sam Meredith 5-6 minutes - Source: CNBC An upcoming meeting between OPEC and non-OPEC allies could see the group deepen oil production curbs, energy analysts told CNBC, although an extension of existing cuts and an emphasis on stricter compliance is still seen as the more likely outcome. OPEC members will host a meeting in Vienna, Austria on Thursday to discuss the next phase of their oil production policy. The 14-member group will then hold talks with non-OPEC allies on Friday. The wider group, sometimes referred to as OPEC+, has reduced output by 1.2 million barrels per day (b/d) since the beginning of the year. The current deal, which runs through to March 2020, replaced a previous round of production cuts that began in January 2017. “I think there is a possibility that we see around 400,000 barrels per day deeper cuts,” Amrita Sen, chief oil analyst at Energy Aspects, told CNBC’s Dan Murphy in Vienna on Wednesday. “ Saudi Ar

Energy | Oil | Oil Price Report: Oil falls as US rights bill fuels tensions with China

3-4 minutes - Source: CNBC Workers extracting oil from oil wells in the Permian Basin in Midland, Texas on May 1, 2018. Benjamin Lowy | Getty Images Oil prices fell for a second day on Thursday after official data showed U.S. crude and gasoline stocks rose and President Donald Trump signed into law a bill backing protesters in Hong Kong, fueling tensions with China. Brent crude  was down 19 cents, or 0.3%, at $63.87 a barrel by 0854 GMT, having dropped 0.3% on Wednesday. West Texas Intermediate crude  fell 33 cents, or 0.6%, to $57.78, after losing 0.5% in the previous session. China warned the United States that it would take “firm countermeasures” in response to U.S. legislation backing anti-government protesters in Hong Kong. Investors are concerned that the move might delay further a preliminary agreement between the United States and China to put an end to their trade war that has slowed global economic growth, and consequently consumption of o

Energy | Oil | Oil Price Report: Oil snaps 2-day win streak on surprise US inventory build

3-4 minutes - Source: CNBC The Tullow Oil Plc Prof. John Evans Atta Mills Floating Production Storage and Offloading vessel sits docked in Singapore on Jan. 21, 2016. Nicky Loh | Bloomberg | Getty Images Oil eased on Wednesday after a report showing U.S. crude inventories grew unexpectedly last week and gasoline stocks surged, but losses were limited by optimism that a U.S.-China trade deal would be reached soon. Brent crude futures fell 27 cents, or 0.4%, to settle at $64.00 a barrel. U.S. West Texas Intermediate crude fell 30 cents, or 0.5%, to settle at $58.11 a barrel. WTI trade volumes were also on track to be lower for the week ahead of the U.S. Thanksgiving holiday. U.S. crude stocks swelled by 1.6 million barrels last week as production hit a record high at 12.9 million barrels per day and refinery runs slowed, the Energy Information Administration said. Analysts in a Reuters poll had forecast a drop of 418,000 barrels. The m

Energy | Oil | Oil Price Report: Oil gains nearly 1% as optimism returns on US-China trade talks

3minutos - Source: CNBC Workers cross walkways between zones aboard an offshore oil platform in the Persian Gulf’s Salman Oil Field, near Lavan island, Iran, on Jan. 5. 2017. Ali Mohammadi | Bloomberg | Getty Images Oil prices edged higher after news that U.S. and Chinese officials discussed trade on Tuesday, while predictions for a weekly draw on U.S. crude stockpiles lent some support as well. Brent crude , the international price benchmark, gained 60 cents, or 0.9%, to settle at $64.25, while West Texas Intermediate crude gained 40 cents, or 0.7%, to settle at $58.41. Top U.S. and Chinese trade negotiators held a phone call on Tuesday morning, China’s commerce ministry said, as the two sides try to hammer out a so-called Phase 1 deal in a trade war that has dragged on for 16 months. In the last few months, markets have swung back and forth, rallying on headlines suggesting the barest progress, even as an agreement has still not b

Energy | Oil | Oil Price Report: Oil falls more than 1% as trade uncertainty, oversupply concerns weigh

3minutos - Source: CNBC An employee holds a control panel as barrels are filled with lubricant oil in Torzhok, Russia, on March 21, 2014. Andrey Rudakov | Bloomberg | Getty Images Oil prices fell more than 1% on Monday, erasing last week’s gains and tumbling alongside U.S. stocks on uncertainty over a trade deal between the United States and China. Brent crude futures fell 95 cents, or 1.5%, to settle at $62.35. West Texas Intermediate (WTI) crude fell 67 cents, or 1.2%, to settle at $57.05. Wall Street’s three main stock indexes also fell from last week’s record highs following a report that stoked concerns a U.S.-China trade deal might not get through, which pushed oil prices lower, analysts said. “Crude has become highly reactive to whichever way the wind is blowing in the (U.S.-China) trade talks. When it falters, prices get punished,” said John Kilduff, a partner at Again Capital LLC in New York. “This headwind of slack demand g

Energy | Oil | Oil Price Report on Friday 15, November 2019: Oil gains 1.7%, shrugging off rising supply concerns

3-4 minutos - Source: CNBC Employees pass beneath pipes leading to oil storage tanks in Russia on February 4, 2014. Andrey Rudakov | Bloomberg | Getty Images Oil futures gained nearly 2% on Friday as comments from a top U.S. official raised optimism for a U.S.-China trade deal, but worries about increasing crude supplies capped prices. Benchmark Brent crude gained $1.03, or 1.7%, to settle at $63.31 a barrel, while West Texas Intermediate crude rose 95 cents, or 1.7%, to settle at $57.72 a barrel. Brent and WTI both posted their second straight weekly gain. U.S. Commerce Secretary Wilbur Ross said in an interview on Fox Business Network on Friday that there was a very high probability the United States would reach a final agreement on a phase one trade deal with China. “We’re down to the last details now,” Ross said. U.S.-China trade talks were set to continue with a telephone call on Friday. A monthly report from the International Energy Agency wei

Energy | Oil | Oil Price Report: Oil falls on US crude stocks build, OPEC shale growth comments

3minutos - Source: CNBC The Sedco 714 oil platform, operated by Transocean, stands in the Port of Cromarty Firth in Cromarty, United Kingdom, on February 16, 2016. Matthew Lloyd | Bloomberg | Getty Images Oil reversed early gains to move lower on Thursday as a build in U.S. crude inventories weighed on prices, while comments from the Organization of the Petroleum Exporting Countries about lower-than-expected U.S. shale production in 2020 limited declines. Prices were also capped by mixed signs for oil demand in China, the world’s biggest crude importer. Industrial output rose more slowly than expected in October, but oil refinery throughput hit the second-highest level on record. Brent  futures hovered around breakeven at $62.36 per barrel, while West Texas Intermediate crude futures lost 17 cents to trade at $56.95. U.S. crude stockpiles grew last week by 2.2 million barrels, compared with analysts’ expectations in a Reuters poll fo

Energy | Oil | Oil Price Report: Oil edges up ahead of U.S. storage data as OPEC, Fed see robust economy

3-4 minutos - Source: CNBC Cowboy farmer and oil pumpjack Getty Images Oil prices edged up on Wednesday after the Organization of the Petroleum Exporting Countries said it saw no signs of global recession and rival U.S. shale oil production could grow by much less than expected in 2020. Also supporting prices were comments by Federal Reserve Chair Jerome Powell, who said the U.S. economy would see a “sustained expansion” with the full impact of recent interest rate cuts still to be felt. “The baseline outlook remains favorable,” Powell said. Brent crude futures gained 61 cents to trade at $62.67, having fallen by over 1% earlier in the day. U.S. West Texas Intermediate crude was at $57.46 per barrel, gaining 66 cents or 1.2%. Analysts said WTI was up more than Brent ahead of storage data from the U.S. Energy Information Administration (EIA) on Thursday that is expected to show a supply draw at the Cushing hub in Oklahoma and a smalle

Energy | Oil | Oil Price Report: Oil pares gains on US-China trade doubts

3-4 minutos - Source: CNBC Deck hands on a natural gas drilling rig on June 6, 2007, outside of Artesia, in eastern New Mexico. Robert Nickelsberg | Getty Images News | Getty Images 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 pressured oil. Brent crude futures, the global benchmark, fell 8 cents to settle at $62.10 a barrel. West Texas Intermediate (WTI) crude shed 8 cents to settle at $56.80 a barrel. Prices eased from earlier gains after Trump’s remarks to a lunch gathering of The Economic Club of New York included mixed messages about U.S.-China trade talks and excluded specifics about any progress in negotiations. The U.S. president said on Saturday that

Energy | Oil | Oil Price Report: Oil falls after Trump downplays optimistic China trade reports

3minutos - Source: CNBC Azeri oil workers operate a large field of drilling rigs on October 12, 2003 outside the capital city of Baku. Oleg Nikishin | Getty Images Oil prices dipped on Monday after U.S. President Donald Trump appeared to downplay reports of an imminent lifting of tariffs in a protracted U.S. - China trade war. Brent crude was down 17 cents at $62.34. The contract gained 1.3% last week. U.S. crude was 26 cents lower at $57.00 a barrel, having risen 1.9% last week. Trump said on Saturday that trade talks with China were moving along “very nicely” but the United States would only make a deal with Beijing if it was the right one for America. Trump also said there had been incorrect reporting about U.S. willingness to lift tariffs as part of a “phase one” agreement, news of which had boosted markets. The 16-month trade war between the world’s two biggest economies has slowed economic growth around the world and prompted a

Energy: Saudi Aramco will offer less than 1% of shares to individual investors in IPO

Ted Kemp, Spencer Kimball, Joanna Tan 4-5 minutos - Source: CNBC Signage of Saudi Aramco’s initial public offering (IPO) is seen during a news conference by the state oil company at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. Hamad Mohammed | Reuters Saudi Aramco will sell up to 0.5% of its shares to individual investors in what could be the largest initial public offering in history. The world’s biggest oil company released a prospectus Saturday, providing further information but without revealing the precise size of its planned share offering. Saudi Aramco said the process begins Nov. 17 and closes Dec. 4. A final offer price, as well as the number and percentage of company shares that will be sold, will be determined at the end of that period. The prospectus says individual investors will have until Nov. 28 to request shares, noting that “up to 0.5%” of the company’s shares will be allocated to indivi