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Obama Nears Needed Votes on Iran Nuclear Deal

Photo Senator Bob Casey, Democrat of Pennsylvania, said in a statement that he would support the Iran nuclear deal, despite deep concern that Iran would not hold up its end of the bargain. Credit Andrew Harnik/Associated Press WASHINGTON — President Obama all but clinched victory for his Iran nuclear deal on Tuesday, as two Democratic senators threw crucial support behind the landmark accord. The announcements by the senators, Bob Casey of Pennsylvania and Chris Coons of Delaware, came a week before the Senate was to formally debate a Republican resolution disapproving the agreement between Iran and six world powers. Mr. Obama would veto any such resolution, and with further announcements of support for the accord expected as soon as Wednesday, any move to override him would almost certainly fail. Mr. Coons’s decision in particular is likely to have resonance with the few remaining undecided Democrats. As an outspoken member […]

Posted On : Published By : Tom Whipple
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OPEC Split on Need for Long-Term Oil-Price Forecasts

OPEC’s strategy review is due for completion later this year. The previous edition produced in 2010 estimated crude would trade in a range of $70 to $86 a barrel through to 2020, then climb to $106 by 2030. Saudi Arabia and its Gulf allies are at odds with Iran and other OPEC members over whether the organization should include oil-price forecasts in its long-term strategy report, according to three of the group’s delegates. The Gulf kingdom, which has led the Organization of Petroleum Exporting Countries in a battle against rival producers, is seeking to exclude price assumptions from the report, according to the delegates, who asked not to be identified because the document isn’t public. The disagreement reflects internal divisions over whether OPEC policy should focus on prices or the stability of the oil market, one of the delegates said. Oil prices plunged to a six-year low last month […]

Posted On : Published By : Tom Whipple
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Obama Gains Support of Two Senators for Iran Deal

Photo Senator Bob Casey, Democrat of Pennsylvania, said in a statement that he would support the Iran nuclear deal, despite deep concern that Iran would not hold up its end of the bargain. Credit Andrew Harnik/Associated Press WASHINGTON — Two Democratic senators threw crucial support behind the Iran nuclear deal on Tuesday, almost assuring that President Obama would have the votes to overcome congressional opponents seeking to derail the landmark accord. The announcements by the senators, Bob Casey of Pennsylvania and Chris Coons of Delaware, came a week before the Senate returned to formally debate a Republican resolution disapproving the accord among Iran and six world powers. With the support of Mr. Casey and Mr. Coons, the chances of Congress torpedoing it are becoming ever more slim. Mr. Coons, an outspoken voice on the Senate Foreign Relations Committee, received personal, written assurances from Mr. Obama on Tuesday on a […]

Posted On : Published By : Tom Whipple
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OPEC: Iran has many projects on tap

A July nuclear deal could pave the way for Iran’s return to the global energy stage by the end of the year. OPEC finds the country has billions of dollars of new projects on tap. Photo by Ali Mohammadi/UPI VIENNA, Sept. 1 (UPI) — Iran could mark its return to the global energy stage when, perhaps by the end of the year, it starts $185 billion worth of new projects, OPEC said. The Organization of Petroleum Exporting Countries said in a monthly newsletter it’s expecting Iran to bring new projects online as sanctions pressure eases. Iran, which is a member of OPEC, has been preparing for the day when sanctions are released and international oil companies again express interest in investing in the country. "Iran has drawn up a list of some 50 oil and gas projects worth $185 billion which it intends to start developing once longstanding economic […]

Posted On : Published By : Tom Whipple
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OPEC magazine op-ed that fueled oil rally baffles insiders

The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria, August 21, 2015. An OPEC publication written by the exporter group’s public relations team helped oil prices jump and prompted speculation over a possible shift in output policy – to the bafflement of some OPEC insiders. The commentary on Monday in the OPEC Bulletin, a magazine issued by OPEC’s Vienna headquarters, said downward pressure on prices due to higher production "remains a cause for concern" and OPEC "stands ready to talk to all other producers". While the 799-word article helped add another 8 percent to oil’s three-day surge, by Tuesday it seemed clear there was no sign of a significant shift in OPEC policy or any indication of a fresh push to shore up markets, analysts and OPEC insiders said. A Gulf delegate said the Bulletin reflected genuine concern in […]

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Oil price crash prompts scramble for Caribbean storage tanks

Norwegian Oil tanker ”Champion Spirit” passes beside Havana’s seafront boulevard ”El Malecon” (top) and colonial fortress ”Morro Cabana” before entering the port June 1, 2010. Demand for crude storage in the Caribbean, one of the world’s most important oil hubs, is rising as producers and traders try to ride out the worst price crash in six years by holding onto more barrels or making blends that can be sold for premiums. The last time tanks in the logistically-important islands were this full, during the price collapse of 2009, companies started leasing vessels to use as floating storage. That is not yet happening now, but the only way to get tank space at the moment is to sublease it, said one tank broker with decades of experience. Since June, his firm alone has received requests to lease up to 7.5 million barrels of tankage in a region with some 100 […]

Posted On : Published By : Tom Whipple
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Venezuela Says China to Give $5 Billion Oil Loan

CARACAS—Venezuela’s government, facing a cash crunch amid a slump in oil prices, signed a deal to receive a $5 billion loan from China, President Nicolás Maduro said Tuesday. The funds will go to increase oil production in Venezuela in the coming months, Mr. Maduro said without offering more details during an address from China that was broadcast on Venezuelan state television. Support from Beijing—which also renewed a separate $5 billion loan to Venezuela earlier this year—may offer some relief to bond markets, where Venezuela’s debt securities are rated among the world’s riskiest. Wall Street analysts say the country could default on its debt as soon as next year. Mr. Maduro visited Vietnam and China this week in pursuit of financial aid for South America’s largest oil exporter as it reels from triple-digit inflation and worsening food shortages. The economic troubles are weighing on the ruling Socialist Party’s popularity ahead […]

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China stock probes send shivers through investment community

An investor looks at electronic boards showing stock information at a brokerage house in Shanghai, China, September 1, 2015. Investigations by Chinese authorities into wild stock market swings are spreading fear among China-based investors, with some unsure if they are simply helping with inquiries or actually under suspicion, executives in the financial community said. Chinese fund managers say they have come under increasing pressure from Beijing as authorities’ attempts to revive the country’s stock markets hit headwinds, with some investors now being called in to explain trading strategies to regulators every two weeks. One manager at a major fund – part of the "national team" of investors and brokerages charged with buying stocks to revive prices – said a friend, also an executive at a large fund, was recently summoned for a meeting with regulators, along with all other mutual funds that had engaged in short-selling activity. "If I […]

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Weak China PMIs won’t automatically lower commodity imports: Russell

Trucks loaded with cargo containers are seen at Ningbo Zhoushan Port, Zhejiang province, December 7, 2014. China’s various purchasing managers’ indexes gather significant attention as indicators of the health of the world’s second-biggest economy, but they are less useful as a predictor of commodity imports. The official Purchasing Managers’ Index (PMI) fell to a 3-year low of 49.7 in August, in line with market expectations and down from a reading of 50 in July. The drop below the 50-level that separates expansion from contraction will be viewed as another sign that China is struggling for growth momentum, and raises further questions over whether 2015’s official target of a 7-percent increase in gross domestic product can be realized. The Caixin/Markit PMI dropped to 47.3 in August, the weakest since 2009 and down from 47.8 in July. The official PMI focuses on large, state-controlled companies, while the Caixin/Markit measure encompasses more […]

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China stocks reverse losses after brokerages pledge support; Hong Kong flat

An investor looks at electronic boards showing stock information at a brokerage house in Shanghai, China, September 1, 2015. China stocks clawed back sharp early losses on Wednesday amid speculation that the government is putting fresh pressure on brokerages to support the market. Nine Chinese brokerages have pledged additional funds worth over 30 billion yuan ($4.71 billion) to buy shares, the China Securities Journal said on Wednesday. The estimates by the Journal followed Tuesday’s announcement by several Chinese brokerages that they would increase the size of their proprietary trading as weeks of turmoil in mainland markets showed little sign of abating. After slumping as much as 4.4 percent in early trade, the CSI300 index was down only 0.2 percent at 3,356.67 points by lunch time. The Shanghai Composite Index also reversed early losses of up to 4.6 percent, and ended the morning up 0.3 percent at 3,176.34 points. Improving […]

Posted On : Published By : Tom Whipple