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Stock Futures Rise Amid China Relief as Focus Shifts to Trade

Chinese and U.S. index futures foreshadowed gains and the Australian dollar strengthened amid relief that Monday’s stock losses in Shanghai didn’t ignite a wider selloff in riskier assets. While the Shanghai Composite Index fell 2.5 percent after resuming following a two-day holiday, traders took solace from the fact the slump wasn’t deeper, driving European shares higher and fueling a pull back in the yen. Forward contracts on Asian emerging-market currencies signaled a rebound, while copper futures climbed ahead of an update on Chinese trade. Ongoing concern over the global oil glut kept U.S. crude below $45 a barrel. While the Chinese index ended last session down, almost three times as many Shanghai-traded stocks rose as fell, with investors looking to mainland markets to gauge sentiment amid a holiday in the U.S. Data Tuesday is projected to show further declines in Chinese exports and imports, potentially reinforcing concern over the […]

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Oil Bears Cashing Out From Crude Market’s Roller-Coaster Ride

Oil bears are cashing out. Hedge funds slashed short positions in West Texas Intermediate by 13 percent in the week ended Sept. 1 as the largest three-day rally in 25 years sent crude up by almost $10 a barrel before it dropped again. It was the biggest liquidation of bearish bets since May. The week made for a wild ride in the crude markets as volatility jumped to a five-month high amid anxiety about a stubborn worldwide glut of crude. Rising production from Iran and the U.S. combined with weaker demand from China put an end to three days of gains on Sept. 1, the last day of the report week, as oil plummeted 7.7 percent. “There’s a lot of nervousness in this market,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “Everyone is retrenching in the face of […]

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Kurdistan authorizes $75m September IOC payment

A worker checks the valve gears of pipes linked to oil tanks at Turkey’s Mediterranean port of Ceyhan, which is run by state-owned pipeline company Botas. (UMIT BEKTAS/Reuters) The Kurdistan region’s Ministry of Natural Resources (MNR) will soon make its first payment of 2015 to oil exporting companies.“MNR approved the allocation of $75 million of revenue from the Kurdistan Regional Government’s direct crude oil sales in Ceyhan as payment on account to TTOPCO as operators of the Taq Taq block ($30m), DNO as operators of Tawke ($30m), and Gulf Keystone Petroleum as operators of Shaikhan ($15m),” the ministry said in a statement released Monday.A KRG of… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

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Two Main Libyan Militias Are Maintaining a Truce to Battle Islamic State

Two of Libya’s most powerful rival militias have maintained pragmatic truces in a joint effort to beat back the advance of extremist group Islamic State, commanders and political representatives said. The truces have been centered in the country’s west, where armed groups supporting two competing governments have been engaged in fierce conflict for more than a year. The fight has effectively split the country and stirred concerns of a full-blown civil war. The two main militias, originating from the western cities of Misrata and Zintan, agreed to cease-fires that have largely held since June. They are exploring ways to try to halt the march of Islamic State westward out of the central city of Sirte on Libya’s Mediterranean coast. The results of truce talks between rival militias could help determine the fate of the oil-rich nation, beset by infighting since the overthrow and killing of longtime dictator Moammar Gadhafi […]

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Iran Sanctions Seen Lifted in Early 2016 by Nuclear Envoys

People celebrate after the 5+1 nuclear agreement was announced on Vali Asr Avenue in Tehran, Iran, on July 14, 2015. Oil and financial sanctions on Iran will probably be lifted within the first three months of 2016, according to four western diplomats familiar with the nuclear monitoring process. Under the terms of a July 14 accord between world powers and Iran, sanctions imposed internationally on the Persian Gulf nation will be lifted in return for restrictions on nuclear work. The Vienna-based International Atomic Energy Agency will assess when Iran has fulfilled the terms of deal, paving the way for the removal of restrictions. The monitoring necessary for that to happen will probably be in place by January or February, according to three of the envoys. A fourth saw restrictions lasting as late as March. All of the officials have knowledge of the IAEA’s verification regime in Iran and asked […]

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Indonesia Said to Be on Course to Rejoin OPEC in December

Indonesia is on track to resume full OPEC membership in December after a break of almost seven years, according to three people familiar with the matter. The Asian nation, which suspended membership in January 2009 after becoming a net oil importer, received formal notification that the Organization of Petroleum Exporting Countries’ 12 members all support its return, said the people, who asked not to be identified because the discussions aren’t public. The move is subject to final approval at the group’s ministerial meeting on Dec. 4, they said. OPEC agreed to suspend Indonesia’s membership in September 2008 at the country’s own request, almost half a century after the nation joined. The country pumped 852,000 barrels a day of oil in 2014 and consumed almost twice as much, according to BP Plc. Indonesia received confirmation of members’ support on Aug. 31, one of the people said. OPEC member countries also […]

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China Exports Mark Latest Soft Reading for Economy

BEIJING—Weaker demand for Chinese goods in most global markets led to a drop in exports for the second consecutive month, as the economy continued its struggle to regain momentum. China’s exports fell 5.5% in August from a year earlier in dollar terms, after a drop of 8.3% in July, data from the General Administration of Customs showed Tuesday. Customs said in a statement that China’s exports will continue to face “relatively big pressure” in the fourth quarter. Export weakness last month was broad-based, ANZ economist Li-Gang Liu said, with shipments to the U.S., European Union, Japan and Southeast Asia all down. Earlier this year, the World Trade Organization lowered its 2015 global trade forecast to 3.3% from 4%. Imports in August fell 13.8% in dollar terms from a year earlier, compared with a 8.1% decrease in July, fueling another significant trade gap, Customs said. China’s trade surplus widened in […]

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China’s Forex Reserves Fall by Record $93.9 Billion on Yuan Intervention

BEIJING—China’s foreign-exchange reserves fell by a record $93.9 billion in August, a result of aggressive intervention in the currency market by the country’s central bank to prevent the yuan from free-falling and limit money leaving Chinese shores . The People’s Bank of China on Monday reported $3.56 trillion in its foreign-exchange holdings as of the end of last month, compared with $3.65 trillion as of July. China’s currency reserves, still the world’s largest, have been falling from a peak of $3.99 trillion in June 2014 as gathering fears of a deepening slowdown in the world’s No. 2 economy have led more businesses and investors to take money out of the country. Based on central-bank data, it was the largest single monthly drop in reserves in absolute terms, and the biggest fall in more than three years on a percentage basis. “Capital outflow is a big concern,” said an official […]

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China’s trade surplus surges 40% as imports plummet

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Posted On : Published By : Tom Whipple