Saturday, 25 November, 2017

Risk premium returns to oil over Iraq fighting, rising US-Iran tensions

Brent Crude Daily January Brent Crude
Jeannie Matthews | 19 October, 2017, 00:45

After Iraqi government forces captured the major Kurdish-held oil city of Kirkuk on Monday in a response to Kurdish independence referendum, which increased concerns about oil supply, the oil prices held near their highest levels in nearly three weeks.

Brent crude futures LCOc1 gained 6 cents, or 0.1 percent, to settle at $57.88 per barrel, while US crude CLc1 gained 1 cent to settle at $51.88. If prices remain high the outlook may be positive for breakbulk operators serving the oil sector as the higher price point supports renewed investment in offshore development. There were also reports that Kurds had shut down some 350,000 barrels per day (bpd) of production from major fields Bai Hassan and Avana due to security concerns.

The oil market is grappling with intensifying geopolitical risks as uncertainty swirls over the impact of tensions surrounding nations such as Iraq, Iran and the United States, according to Goldman Sachs Group Inc.

Oil prices rose after Iraqi forces entered Kirkuk, briefly cutting some crude output from OPEC's second-biggest producer.

Goldman Sachs said the Kirkuk cluster of oil fields, which pump about 500,000 bbl/d and extend from the autonomous Kurdistan region into northern Iraq, were at risk from the conflict.

Sensex climbs 211 pts on positive economic data points
The 30-scrip Sensitive Index (Sensex) was trading 122.17 points or 0.38 per cent higher during the afternoon trade. On this basis, the Sensex rose by 201 points to 32, 634, while the Nifty advanced 63 points to 10,200.

U.S. President Donald Trump on Friday refused to certify Iran's compliance over a nuclear deal, leaving Congress 60 days to decide on further action against Tehran.

OPEC and 10 producers outside the cartel, including Russian Federation, first agreed late a year ago to cap their production at around 1.8 million barrels a day lower than peak October 2016 levels, with the aim of alleviating global oversupply and boosting prices.

The other geopolitical risk helping crude prices is the possibility the US will impose fresh sanctions on Iran, limiting its oil export capacity. The group is managing the global glut of crude oil after noticing the prices halve and revenues dip sharply in the recent times.

If no other countries support the USA push for more sanctions, Iran's production is unlikely to drop by 1 million bpd, according to Goldman.

Crude oil inventories were seen down by 1.8 million barrels, distillates down by 2.375 million barrels and gasoline stocks expected to show a 1.025 million barrels decline. "Oil and geopolitics are very much interlinked", Fatih Birol, executive director of the International Energy Agency, told Reuters. Both contracts traded up almost 1 percent and down over 1 percent during the day. "We see Brent averaging $54 this quarter and $52.50/bbl in first-half 2018, compared with our previous forecasts of $50 and $49.50/bbl respectively", it said.

Recommended

  • United Kingdom  interest rates set to rise as inflation hits 3%

    United Kingdom interest rates set to rise as inflation hits 3%

    The pound was little changed by the inflation numbers as most investors have already priced in a likely November rate hike. Many economists still remained confident that Carney and co would still hike rates at their coming meeting.
    Sri Lanka eases ban on all-rounder Gunathilaka

    Sri Lanka eases ban on all-rounder Gunathilaka

    Pakistan defeated Sri Lanka in the second ODI by 32 runs of the five-match series in Abu Dhabi. SLC president Thilanga Sumathipala will also come with his players.

    Rocky's Back: Sylvester Stallone Is Directing 'Creed 2'

    Jordan's Adonis Creed (son of Apollo) and a new, more socially conscious outlook on what it means to be a modern underdog. No director or release date has been confirmed for the long awaited " Creed 2 ", but more news to follow.
  • Samsung Connect Tag is a smart IoT tracker using narrowband technology

    Samsung Connect Tag is a smart IoT tracker using narrowband technology

    Unlike other smart tags which uses Bluetooth LE, Samsung Connect Tag uses narrowband network technology (NB-IoT, Cat.M1). The Connect Tag will be available in South Korea first before arriving in other locations over the coming months.
    Turkey welcomes Hamas-Fatah reconciliation

    Turkey welcomes Hamas-Fatah reconciliation

    But one central issue has yet to be discussed: the fate of Hamas' militant wing and cache of rockets and weapons. In an online posting later, Netanyahu warned that the deal would make "peace much harder to achieve".
    Daesh's British online recruiter 'White Widow' killed by USA  drone

    Daesh's British online recruiter 'White Widow' killed by USA drone

    How did Jones become involved with ISIS? Sally Jones was an aspiring punk rock musician in England. Hussain, a computer hacker from Birmingham who was another senior Isis member, was killed in a...
  • Himachal polls on Nov 9, results on Dec 18

    Himachal polls on Nov 9, results on Dec 18

    Voting for the 68-seat Himachal Pradesh Assembly will take place on November 9 and the results will be declared on December 18. Union minister Jitender Singh said that Congress party was questioning the wisdom and prudence of the constitutional body.

    Twitter promises 'new rules' after women hold day-long boycott

    However, he also said that it's not as high a priority as enforcing rules on trolls and people putting out abusive tweets. Twitter's approach to policing content has been under more intense scrutiny in recent months.
    Nubia Z17S, Z17 miniS with 4 cameras launched: Price, specifications, features

    Nubia Z17S, Z17 miniS with 4 cameras launched: Price, specifications, features

    Even though that sound a bit ridiculous, but I guess everyone is entitled to their own perspectives, even if they are irrational. The flagship Nubia Z17S comes with 6GB RAM and 64GB storage and is priced at RMB 2,999, which is around Rs 29,594 on conversion.
  • Rex Tillerson responds to 'castration' comment on CNN, 'I'm fully intact'

    Rex Tillerson responds to 'castration' comment on CNN, 'I'm fully intact'

    Tillerson's tenure as secretary of state has been dogged by rumors about rifts with Trump over policy. Pressed repeatedly on the subject by Tapper on Sunday, Tillerson refused to budge.
    Israel to join USA  in quitting Unesco

    Israel to join USA in quitting Unesco

    According to Foreign Policy , France's United Nations ambassador, Fran├žois Delattre, hoped the USA would stay within UNESCO . The critical juncture Fran├žois Delattre referred to may be the selection of UNESCO's new director-general.
    Manchester City boss Pep Guardiola: I would never disrespect Tottenham

    Manchester City boss Pep Guardiola: I would never disrespect Tottenham

    Why that comment? It didn't help him, it's not a good thing for anyone". I was never disrespectful in this period here about my colleagues.

Japan, US agree to seek diplomatic solution to Korean Peninsula tensions Japan, US agree to seek diplomatic solution to Korean Peninsula tensions The statement comes on the heels of heightened rhetoric between North Korea and the United States over the past several months. Mr Kim warned that tensions on the peninsula have "reached the touch-and-go point and a nuclear war may break out any moment".

Retired US General: S. Korea Has Right to Pursue Nuke Weapons Retired US General: S. Korea Has Right to Pursue Nuke Weapons The European Union imposed new sanctions on North Korea Monday as part of worldwide efforts to punish Pyongyang for its nuclear and ballistic weapons programs.

Liverpool boss Klopp confirms Karius to start Maribor clash I can not now mention it if I need it and then when I don't need it then I say it's not important", continued the boss. It is the last place I would do things like this.

Girl child rescued from Bengaluru building collapse, government says will adopt her Girl child rescued from Bengaluru building collapse, government says will adopt her In the same area, an illegally constructed multi-storey building was demolished after it tilted to one side in August. Following the incident, the administration rushed police and firefighters to the spot to carry out rescue work.

Controversial Fumble Call Dominates Postgame Discussion From Patriots' Win Over Jets Controversial Fumble Call Dominates Postgame Discussion From Patriots' Win Over Jets It marked the first time New England trailed by 14 or more in the first half since Week 4 of the 2014 season at Kansas City. On the ground, Dion Lewis rushed for 53 yards in seven carries while Mike Gillislee added 52 yards in 12 attempts.

Facebook now lets you order food without leaving Facebook Facebook now lets you order food without leaving Facebook On Friday, the social networking site announced that you'll now be able to order food for pick up and delivery through Facebook . However, the company made no comment as to how long that option was live, or what percentage of users on Facebook had it to use.

Modi, Nitish To Share Dais For First Time After Patch-Up Modi, Nitish To Share Dais For First Time After Patch-Up Referring to Ganga, Modi said: "If there was no Ganga, I do not know what condition our land would have been in". This was PM Modi's first ever full-fledged tour of the state since joining the hands with Nitish Kumar-led JDU.

Kwon bids adieu to Samsung Electronics Empire, says time for young leadership Kwon bids adieu to Samsung Electronics Empire, says time for young leadership The "unprecedented crisis" that Kwon may be alluding to is the arrest of Lee Jae-yong, the de facto leader of the Samsung. Kwon was expected to take a bigger role after the arrest of scion and heir apparent of Samsung Group, Jay Y Lee.

[Download APK] Google starts rolling out Play Store v8.3.42 [Download APK] Google starts rolling out Play Store v8.3.42 This means consumers can now make video calls directly from the phone, messages, and contacts. It scans every app before you install it.

DOJ gives last chance warning to NYC for sanctuary city policies DOJ gives last chance warning to NYC for sanctuary city policies In a statement Thursday, Mayor Mitch Landrieu says the DOJ confirmed the city's compliance. Mayor Kenney said Philadelphia welcomes immigrants and supports its immigrant communities.

U.S. withdraws from UNESCO over "anti-Israel bias" U.S.  withdraws from UNESCO over The United Nation's education, cultural and scientific agency has passed several resolutions against Israel. The US is pulling out of the UN's cultural organisation Unesco , accusing it of "anti-Israel" bias.

Jerry Jones takes part in meeting with players about protest remarks Jerry Jones takes part in meeting with players about protest remarks Some states have their own First Amendment-style protections, and they can include protection of political speech, Tushnet said. Cawyer, a Fort Worth-based lawyer who is a partner and chairman of Kelly Hart's labor and employment practice group.

Inside view of the Australian team bus with shattered glass Inside view of the Australian team bus with shattered glass Personal security of visiting athletes & teams is extremely important for us", Rathore said on his official Twitter account.

Toddler left in Utah corn maze Toddler left in Utah corn maze Police and DCFS will work together with the family to see if it was an oversight, an accident, or if charges are warranted. His mother called the police on Tuesday around 8 a.m. and then came to the police station to pick up the boy.

Ross Fisher sets record round of 61 at St Andrews Ross Fisher sets record round of 61 at St Andrews Eleven shots off the lead, McIlroy is likely to finish a season without a victory for just the second time in his pro career. Finally, a well done to American Brendan Steele for defending his Safeway Open title on the PGA Tour.