Chevron chief lashes out at European oil groups on climate change
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Greek Debt Impasse Spurs Third Day of Losses for European Stocks
European stocks deepened a drop as another round of talks failed to end a stalemate in Greek debt talks. The Stoxx Europe 600 Index slipped 0.6 percent to 393.71 at 8:11 a.m. in London. Greek debt talks have dragged on even with loan-payment deadlines looming, helping push the benchmark gauge 5 percent down from a record in April. Greek Prime Minister Alexis Tsipras rejected proposals by European leaders and the International Monetary Fund to help unlock more aid, instead backing his own government’s plans. The country has to make four payments totaling more than 1.5 billion euros ($1.7 billion) to the IMF this month, even as its euro region bailout expires. Tsipras indicated that Greece won’t miss the first installment due Friday. Still, traders are betting stock swings will fade with Greek worries, letting them return their focus to the economy and company earnings. Options market data shows expectations […]
Ukraine forces, separatists fight first serious battles in months
KIEV Ukrainian troops and pro-Russian separatists on Wednesday fought their first serious battles in months and Ukraine’s defense minister said an attempt by rebels to take the eastern town of Maryinka had been thwarted. The Ukrainian military said the Russian-backed rebels had tried to advance using tanks and up to 1,000 fighters west of the main rebel stronghold of Donetsk, in the most significant escalation of the conflict in about three months and in defiance of a ceasefire deal. Estimates of casualties varied. The separatists, who denied their forces had launched an assault, said 15 people had been killed when government troops fired artillery into rebel-held territory near the city. A Ukrainian presidential spokesman, Yuri Biryukov, on his Facebook page put total casualties at 7 p.m. (1600 gmt) at two dead and 30 injured, while regional police chief Vyacheslav Abroskin said three civilians had been killed. In Moscow, the […]
Russia in Full ‘Crisis’ to Kudrin Forecasting Longer Recession
Former Russian Finance Minister Alexei Kudrin Russia will endure a longer recession than forecast by the government, former Finance Minister Alexei Kudrin said, urging the central bank to refrain from further interest-rate cuts as economic risks persist. Gross domestic product may continue shrinking into the first quarter of next year, putting the economy on track for zero growth in 2016 after a slump of about 4 percent in 2015, Kudrin said in Moscow on Wednesday. Kudrin, 54, took issue with the contention by government officials that Russia has put the worst of the economic crisis behind it and warned that companies are only now beginning to feel the pain of collapsing demand. “We are now in a full-fledged crisis,” Kudrin said. “The situation in the real sector is still very bad.” The assessment by the long-time ally of President Vladimir Putin is at odds with government expectations for a […]
Euro pauses after biggest gains in six years
LONDON The euro took a breather on Thursday, after its biggest two-day gain against the dollar in over six years on Thursday as the European Central Bank played down the impact of bond market volatility and the euro zone returned to inflation. The biggest mover among major currencies on Thursday was the Australian dollar, which skidded 1 percent to $0.7708 after weak data renewed expectations of further monetary easing. AUD=D4 Tracking a spike in German Bund yields on Wednesday, their biggest two-day move since 1998, the euro had rallied across the board, touching a two-week high against the dollar at $1.12855 EUR= after ECB President Mario Draghi indicated the ECB would not add more stimulus because of rising yields. But having gained over 3 percent in the two previous days, the euro edged down 0.1 percent in European trading on Thursday to $1.12595, as Bund yields came off their […]
Forget the Noise: Oil Prices Won’t Crash Again
Oil rising to $60/bbl is displeasing some people, particularly the shorts. Some of the more extreme –those calling for oil in the $20’s – have wisely fallen silent. Others, like Goldman Sachs, who a few months ago had set their flag in the 30’s, have unfortunately not gone so silent. They recently moved their flag into the 40’s but they continue to talk a lot. A better strategy – though one that would require some humility — would be to stop talking and listen. Recent and compounding data will soon wash away the walls of worry erected by the experts. Four consecutive weeks of inventory draws, each one larger than the last is irrefutable proof that a 60% decline in the rig count means something. Shorts will downplay this trend and point to last week’s surge in US production. But this could have had as much to do with […]
Oil prices drop as oversupply weighs on markets
SINGAPORE Crude oil prices fell on Wednesday as oversupply weighed on markets, with OPEC not expected to announce a production cut at its meeting on Friday. Core Gulf members of the Organization of the Petroleum Exporting Countries (OPEC), which controls over 40 percent of the world’s crude production, have a consensus to maintain the group’s oil output at its meeting this week, a senior Gulf OPEC delegate told Reuters in Vienna on Tuesday. "There is consensus among Gulf OPEC countries, and others, to keep the (production) ceiling unchanged," the source said. "Nobody wants to rock the boat. The meeting is expected to be smooth sailing." High production by OPEC, but also from other regions like U.S. shale producers and Russia, has contributed to oversupply and left tankers filled with millions of barrels of oil without buyers. Some analysts said there was a chance OPEC could increase its production target. […]
Oil Slips on Investor Caution, U.S. Inventory Data Awaited
By Eric Yep Crude-oil futures slipped in Asian trade Wednesday after an industry report showed a surprise uptick in U.S. oil inventories and as investors were reluctant to boost positions ahead of Friday’s OPEC meeting. On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $60.91 a barrel at 0325 GMT, down $0.35 in the Globex electronic session. July Brent crude on London’s ICE Futures exchange fell $0.28 to $65.21 a barrel. Late Tuesday, the American Petroleum Institute reported an unexpected 1.8-million-barrel increase in U.S. oil stocks for the week ended May 29. The more definitive inventory data from the U.S. Energy Information Administration is due later Wednesday and markets expect a decline. U.S. oil inventory data, along with oil production levels, affect oil prices as traders and investors have been looking for any sign of how the U.S. shale industry will respond […]
Oil prices stabilize, firm demand counters oversupply
SINGAPORE Crude oil prices stabilized on Tuesday due to firm demand after dipping in early trade on expectations that OPEC would not cut output at its meeting this week. The Organization of the Petroleum Exporting Countries (OPEC) meets this Friday in Vienna to discuss its production strategy, with U.S. bank Citi saying the group was likely to maintain current production. Prices were supported as Saudi oil minister Ali al-Naimi said overnight that demand would pick up and tighten the market in the second half of the year. "Comments from Saudi Arabian oil minister Ali al-Naimi were characteristically upbeat, acknowledging a current surplus in the market, but anticipating stronger second half demand and an eventual rebalancing of the market," Citi said in a note responding to his comments. Front-month Brent crude futures fell to a low of $64.71 per barrel on Tuesday, before edging back to $64.85 by 0345 GMT. […]
Natural Gas Rallies as Bears Exit
By Timothy Puko Natural gas surged Tuesday afternoon as more optimistic demand forecasts and data showing falling production are chasing bears from the market. Prices for the front-month June contract gained 4.9 cents, or 1.9%, to $2.698 a million British thermal units on the New York Mercantile Exchange. It is the second straight winning session and gas rallied more than 3.5% intraday after it fell to $2.606/mmBtu just after noon. Weather models grew slightly warmer in their midday updates, which built up expectations for gas demand at power plants that are feeding air conditioners, meteorologists said. It wasn’t a big change, but many traders are already nervous and the change likely pushed some to cover their bets, said Marc Kerrest, a trader in San Francisco. "It wasn’t that impressive, but it seemed like that was driving things along," said Matt Rogers at Commodity Weather Group LLC in Bethesda, Md. […]