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OIL NEWS (O N)
smiler o
- 23 Jan 2008 20:17
POST YOUR OIL NEWS, Clips here
smiler o
- 02 Feb 2012 08:20
- 407 of 435
Oil hovers below $98 in Asia amid mixed signs on US crude demand strength
SINGAPORE — Oil prices hovered below $98 a barrel Thursday in Asia amid mixed signs about the strength of U.S. crude demand.
Benchmark crude for March delivery was up 1 cent at $97.62 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 87 cents to settle at $97.61 on Wednesday.
Brent crude rose 30 cents to $111.86 a barrel on the ICE Futures Exchange in London.
A jump of U.S. crude inventories last week by 4 million barrels suggested oil consumption is sluggish. However, factories raised output in January by the most in seven months, the Institute for Supply Management said Wednesday while the Commerce Department said construction spending rose 1.5 percent in December, the fifth straight monthly gain.
Oil prices have hovered near $100 for the last few months amid mixed economic signs from the U.S., Europe and Asia. Some analysts expect crude to begin to rise as the global economy may grow more this year than previously expected.
“The crude oil price has become stuck in a remarkably extended period of narrow sideways trading,” Barclays Capital said in a report. “However, the market is now likely to start to position for an upside break based on a greater degree of relaxation about macroeconomic prospects.”
In other energy trading, heating oil rose 1.8 cents to $3.06 per gallon and gasoline futures were steady at $2.89 per gallon. Natural gas gained 1.3 cents to $2.40 per 1,000 cubic feet.
SINGAPORE — Oil prices hovered below $98 a barrel Thursday in Asia amid mixed signs about the strength of U.S. crude demand.
Benchmark crude for March delivery was up 1 cent at $97.62 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 87 cents to settle at $97.61 on Wednesday.
Brent crude rose 30 cents to $111.86 a barrel on the ICE Futures Exchange in London.
A jump of U.S. crude inventories last week by 4 million barrels suggested oil consumption is sluggish. However, factories raised output in January by the most in seven months, the Institute for Supply Management said Wednesday while the Commerce Department said construction spending rose 1.5 percent in December, the fifth straight monthly gain.
Oil prices have hovered near $100 for the last few months amid mixed economic signs from the U.S., Europe and Asia. Some analysts expect crude to begin to rise as the global economy may grow more this year than previously expected.
“The crude oil price has become stuck in a remarkably extended period of narrow sideways trading,” Barclays Capital said in a report. “However, the market is now likely to start to position for an upside break based on a greater degree of relaxation about macroeconomic prospects.”
In other energy trading, heating oil rose 1.8 cents to $3.06 per gallon and gasoline futures were steady at $2.89 per gallon. Natural gas gained 1.3 cents to $2.40 per 1,000 cubic feet.
smiler o
- 02 Feb 2012 08:44
- 408 of 435
Shell profits up 54% on firm oil prices
Thursday 2 February 2012 08.30 GMT
Brent crude averaged more than $111 per barrel during 2011 compared with $80 in 2010, helping Shell to reap rewards despite a 3% decline in production
Concerns about corporate profiteering in the energy sector are likely to be reignited again on Thursday with Shell reporting a 54% increase in annual earnings to $28.6bn (£18bn) - £2.2m an hour.
Peter Voser, the Shell chief executive, said the final three month results for 2011, at $6.4bn, were still lower than he wanted - hit by a "sharp downturn" in refining margins and he warned: "The global economy and energy markets are likely to see high volatility."
The Anglo-Dutch oil group kept its dividend payout to investors steady at 42 cents per share but said it expected to raise this to 43 after the first three months of the new financial year - the first increase since 2009.
Brent crude averaged more than $111 per barrel during 2011 compared with $80 in 2010, helping the company to reap rewards despite a 3% decline in production.
Shell gave no figures for its petrol sales in Britain or the rest of the world and has previously argued that its profit margins on the forecourt are wafer thin as most of the pump price is made up of government tax.
But UK motorists are facing near record prices for diesel and the exit of big companies such as Shell from the British refining sector is blamed by some for making the market more volatile. Shell sold off its Stanlow refinery in Cheshire last year while the financial troubles at the smaller Swiss company, Petroplus, which bought the Coryton plant from BP has led to fears of petrol shortages in the south east of England.
Oil and power supply companies that make up the wider energy sector have been under fire for making increasing profits at a time when motorists and householders are struggling to pay their bills.
Shell shares, down around 2% to £22.30 in early trading, have risen strongly over the last 12 months - 11% over the calendar year while arch-rival BP saw a 1% decline, continuing to be hit by the fallout from the Gulf of Mexico oil spill of 2010.
Meanwhile Shell has been expanding. The company pledged to spend $100bn over four years to 2014 aimed at reversing declining oil output by concentrating on 30 major development projects to come on stream
Thursday 2 February 2012 08.30 GMT
Brent crude averaged more than $111 per barrel during 2011 compared with $80 in 2010, helping Shell to reap rewards despite a 3% decline in production
Concerns about corporate profiteering in the energy sector are likely to be reignited again on Thursday with Shell reporting a 54% increase in annual earnings to $28.6bn (£18bn) - £2.2m an hour.
Peter Voser, the Shell chief executive, said the final three month results for 2011, at $6.4bn, were still lower than he wanted - hit by a "sharp downturn" in refining margins and he warned: "The global economy and energy markets are likely to see high volatility."
The Anglo-Dutch oil group kept its dividend payout to investors steady at 42 cents per share but said it expected to raise this to 43 after the first three months of the new financial year - the first increase since 2009.
Brent crude averaged more than $111 per barrel during 2011 compared with $80 in 2010, helping the company to reap rewards despite a 3% decline in production.
Shell gave no figures for its petrol sales in Britain or the rest of the world and has previously argued that its profit margins on the forecourt are wafer thin as most of the pump price is made up of government tax.
But UK motorists are facing near record prices for diesel and the exit of big companies such as Shell from the British refining sector is blamed by some for making the market more volatile. Shell sold off its Stanlow refinery in Cheshire last year while the financial troubles at the smaller Swiss company, Petroplus, which bought the Coryton plant from BP has led to fears of petrol shortages in the south east of England.
Oil and power supply companies that make up the wider energy sector have been under fire for making increasing profits at a time when motorists and householders are struggling to pay their bills.
Shell shares, down around 2% to £22.30 in early trading, have risen strongly over the last 12 months - 11% over the calendar year while arch-rival BP saw a 1% decline, continuing to be hit by the fallout from the Gulf of Mexico oil spill of 2010.
Meanwhile Shell has been expanding. The company pledged to spend $100bn over four years to 2014 aimed at reversing declining oil output by concentrating on 30 major development projects to come on stream
smiler o
- 02 Feb 2012 08:57
- 409 of 435
North Sea Oil Exports to Asia at 8-Year High: Energy Markets
Q
By Grant Smith and Sherry Su - Feb 1, 2012 11:00 PM GMT
More North Sea oil is being shipped to Asia than at any time in the past eight years as prices fall to their cheapest levels in 15 months compared with Middle East alternatives.
Brent traded at $2.41 a barrel more than Dubai crude on Jan. 13, the smallest difference since October 2010, PVM Oil Associates Ltd. data show. Companies led by BP Plc (BP/) and Vitol Group have sent at least 8 million barrels of North Sea oil to Asian ports since mid-December, equivalent to six days of U.K. production, according to ship-tracking data from AISLive Ltd. That’s the most for any month since 2004, data from Galbraith’s Ltd., a London-based shipbroker, show.
Rising production in Libya, refinery closures from the U.K. to Switzerland and a drop in U.S. gasoline demand have created a surplus that’s weighing on the price of low-sulfur, or sweet, crude produced in the North Sea (EUCSFORT) and West Africa. That’s making it profitable for companies to transport the raw material more than 16,000 miles (25,700 kilometers) to Asia, where demand is outpacing the rest of the world.
“There’s a glut of light-sweet crude,” said Leo Drollas, chief economist at the Centre for Global Energy Studies, the London-based researcher founded by former Saudi Arabia Oil Minister Sheikh Ahmad Yamani. “It’s a demand-and-supply story. The return of Libya is part of it. Then there’s weak demand for gasoline in the U.S. It’s negative.”
Brent-Dubai
While still more expensive than Middle East grades, Brent’s narrowing premium is making it more attractive to Asian refiners because it’s cheaper and easier to process into higher-value products such as gasoline and diesel, according to JBC Energy GmbH, a Vienna-based consultant.
The Brent-Dubai spread, a measure of North Sea prices versus crudes typically sold in Asia, was at $3.01 yesterday, compared with an average of $5.16 in the past year, according to PVM, which tracks Brent on the ICE Futures Europe exchange and Dubai swaps in the brokered market.
The spread has narrowed as the crude grades that comprise Dated Brent have fallen. The price of Forties (EUCSFORT) dropped to 63 cents a barrel less than Dated Brent on Jan. 17, the lowest level since Oct. 24, 2010, according to data compiled by Bloomberg. It was at a discount of 9 cents yesterday, compared with an average of 37 cents more than the benchmark grade in the past 12 months. The premium of Nigeria’s Qua Iboe (AFCSQUA1) oil declined to a one-month low of $2.50 a barrel relative to Dated Brent on Jan. 20, the data show.
BP, Vitol
“North Sea Forties, the usual price-setter of Dated Brent, seems to be increasingly becoming an arbitrage crude,” analysts led by Johannes Benigni at JBC Energy wrote in a Jan. 31 report. “Substantial volumes have been sent to Asia over the last three months, with China, South Korea and Australia accounting for the bulk.”
Exports of North Sea Forties crude will swell to a 10-month high of 475,862 barrels a day this month, while shipments of Nigerian supplies will rise by 1.8 percent from January to 2.14 million barrels a day, loading programs obtained by Bloomberg News show.
BP, Europe’s second-biggest oil company by market value, and Vitol, the world’s biggest independent oil trader, scheduled supertankers from Hound Point, a terminal off the coast of Scotland, to South Korea and Singapore, on Dec. 12 and Jan. 15, respectively, according to Athens-based Optima Shipbrokers Ltd. Two more vessels were hired to load in mid-January, according to AISLive, a unit of Redhill, England-based IHS Fairplay. Officials at BP and Vitol declined to comment on oil shipments.
‘Attractive Trade’
“This is really a push from the west,” said Olivier Jakob, managing director at Petromatrix GmbH, an oil-market researcher in Zug, Switzerland. “With the return of Libya and the closure of refineries in the U.S. and Europe, the Atlantic Basin has to push some barrels out, and this is seen through the weaker Brent-Dubai spread.”
Brent, the benchmark grade for more than half the world’s oil, will start to reverse its decline against Dubai swaps as suppliers of sweet crude such as Angola and Nigeria struggle to bolster capacity, while OPEC members increase output of medium and heavy crude, curbing the advantage of shipping oil to Asia from Europe and Africa, according to BNP Paribas SA.
“Going long Brent, short Dubai appears to us an attractive medium-term trade,” Harry Tchilinguirian, the London-based head of commodity-market strategy at BNP Paribas, said in a Jan. 19 telephone interview.
Plant Closures
Refiners are shutting plants amid a slide in gasoline use in the U.S., the world’s biggest consumer of the motor fuel. Demand dropped to a seven-year low in the week ended Jan. 6, according to MasterCard Inc.
Petroplus Holdings AG (PPHN), the European refiner that filed for insolvency last month, said in December it’s closing three plants with a combined capacity of 337,000 barrels a day. That’s about 2 percent of Europe’s capacity, according to data compiled by Bloomberg. Total SA, Europe’s largest refiner, reduced its capacity in Europe by 19 percent in the five years to 2010, according to data posted on its website.
Libya’s crude production rose to 1.3 million barrels a day as of Jan. 25, state-run National Oil Corp. said Jan. 26. Output from the North African nation slumped during last year’s uprising to oust Muammar Qaddafi, from about 1.6 million barrels before the conflict began.
smiler o
- 03 Feb 2012 08:41
- 410 of 435
Huge oil drilling contract agreed
(UKPA 2nd February 2012
Oil giant BP has announced a multimillion-pound contract with a specialist offshore engineering firm for the second phase of a massive project off the Shetland Islands.
Subsea 7 will produce new pipelines for the Clair Ridge drilling project where the North Sea and Atlantic Ocean meet.
The second phase of the giant Clair field forms part of £10 billion being spent on four projects by BP and its partners Shell, ConocoPhillips and Chevron over the next five years.
At their peak, the projects are expected to provide 3,000 oil and gas supply jobs and play a part in sustaining the more than 3,500 jobs in BP's North Sea operations.
The latest contract, which includes a 14km (8.7 mile) gas pipeline, is worth around £63 million.
Around 100 jobs at Subsea 7's base in Wick have been secured by the new contract.
Offshore operations are due to get under way next year.
Scottish Secretary Michael Moore said: "This major contract underlines the confidence of the oil and gas sector and world-leading engineering firms with bases in Scotland. The construction of the pipeline is an essential step in opening up the considerable potential of the west-of-Shetland field.
"The contract award to Subsea 7 is just the latest piece of good news for the UK's oil and gas sector and its supply chain in Scotland. I welcome the investment by BP and the jobs and expertise which will be secured in the Wick facility as a result."
Subsea 7 UK vice-president Steph McNeill said: "We are pleased to be awarded this major pipeline project by BP. We look forward to helping bring on-stream the Clair Ridge project in an efficient, timely and safe manner."
Also
Subsea 7 lands £63m BP North Sea contract
By Scott Reid
Published on Friday 3 February 2012 00:00
OFFSHORE engineering group Subsea 7 has landed a fresh $100 million (£63m) contract with BP for work on a massive project off the Shetland Islands.
The Aberdeen-based firm will help produce pipelines for the Clair Ridge drilling project, which is located where the North Sea and Atlantic Ocean meet.
The second phase of the giant Clair field forms part of £10 billion being spent on four projects by BP and its partners – Chevron, ConocoPhillips and Shell – over the next five years.
At their peak, the projects are expected to provide some 3,000 oil and gas supply jobs and play a part in sustaining the 3,500-plus jobs in BP’s North Sea operations.
Subsea 7, which has a 5,500-strong workforce across the globe, has landed similarly sized contracts with BP in the past. Some 100 jobs at Subsea 7’s base in Wick have been secured by the latest deal.
Steph McNeill, the firm’s vice-president for the UK, said: “We look forward to helping bring on-stream the Clair Ridge project in an efficient, timely and safe manner.”
Scottish Secretary Michael Moore said: “This major contract underlines the confidence of the oil and gas sector and world-leading engineering firms with bases in Scotland.
“The construction of the pipeline is an essential step in opening up the considerable potential of the west-of-Shetland field.”
Subsea 7, which also has a base in Leith, was founded by Norwegian investor Kristian Siem.
(UKPA 2nd February 2012
Oil giant BP has announced a multimillion-pound contract with a specialist offshore engineering firm for the second phase of a massive project off the Shetland Islands.
Subsea 7 will produce new pipelines for the Clair Ridge drilling project where the North Sea and Atlantic Ocean meet.
The second phase of the giant Clair field forms part of £10 billion being spent on four projects by BP and its partners Shell, ConocoPhillips and Chevron over the next five years.
At their peak, the projects are expected to provide 3,000 oil and gas supply jobs and play a part in sustaining the more than 3,500 jobs in BP's North Sea operations.
The latest contract, which includes a 14km (8.7 mile) gas pipeline, is worth around £63 million.
Around 100 jobs at Subsea 7's base in Wick have been secured by the new contract.
Offshore operations are due to get under way next year.
Scottish Secretary Michael Moore said: "This major contract underlines the confidence of the oil and gas sector and world-leading engineering firms with bases in Scotland. The construction of the pipeline is an essential step in opening up the considerable potential of the west-of-Shetland field.
"The contract award to Subsea 7 is just the latest piece of good news for the UK's oil and gas sector and its supply chain in Scotland. I welcome the investment by BP and the jobs and expertise which will be secured in the Wick facility as a result."
Subsea 7 UK vice-president Steph McNeill said: "We are pleased to be awarded this major pipeline project by BP. We look forward to helping bring on-stream the Clair Ridge project in an efficient, timely and safe manner."
Also
Subsea 7 lands £63m BP North Sea contract
By Scott Reid
Published on Friday 3 February 2012 00:00
OFFSHORE engineering group Subsea 7 has landed a fresh $100 million (£63m) contract with BP for work on a massive project off the Shetland Islands.
The Aberdeen-based firm will help produce pipelines for the Clair Ridge drilling project, which is located where the North Sea and Atlantic Ocean meet.
The second phase of the giant Clair field forms part of £10 billion being spent on four projects by BP and its partners – Chevron, ConocoPhillips and Shell – over the next five years.
At their peak, the projects are expected to provide some 3,000 oil and gas supply jobs and play a part in sustaining the 3,500-plus jobs in BP’s North Sea operations.
Subsea 7, which has a 5,500-strong workforce across the globe, has landed similarly sized contracts with BP in the past. Some 100 jobs at Subsea 7’s base in Wick have been secured by the latest deal.
Steph McNeill, the firm’s vice-president for the UK, said: “We look forward to helping bring on-stream the Clair Ridge project in an efficient, timely and safe manner.”
Scottish Secretary Michael Moore said: “This major contract underlines the confidence of the oil and gas sector and world-leading engineering firms with bases in Scotland.
“The construction of the pipeline is an essential step in opening up the considerable potential of the west-of-Shetland field.”
Subsea 7, which also has a base in Leith, was founded by Norwegian investor Kristian Siem.
smiler o
- 03 Feb 2012 08:43
- 411 of 435
2 February 2012 Last updated at 19:46 Share this pageEmail Print Share this page
1ShareFacebookTwitter.Interest in Coryton oil refinery 'encouraging'
The interest in the Coryton refinery was described as "very encouraging" by energy minister Charles Hendry.
The site halted sales after its Swiss owner, Petroplus, placed the plant into administration last week.
The plant supplies 20% of fuel in the South East.
About 850 people work at the site.
Administrators PwC announced earlier this week it had acquired a cargo of oil which will allow refining work to continue, providing a "breathing space" for the refinery.
'Crucial boost'
Mr Hendry led a meeting of politicians, business officials and unions to discuss the future of the refinery earlier.
"We have had another positive meeting at which the joint administrators updated those present on what they have achieved so far and their planned next steps," he said.
"The deal that allowed petrol and diesel to be delivered to forecourts from the refinery was a crucial boost, while the crude oil delivery acquired on Tuesday was important to maintaining refining operations.
"The collaborative approach taken by the workforce and the refinery's management has also been vital in making these things happen.
"There are critical issues to be resolved in the coming weeks."
As well as refining oil for use as fuel, the Coryton site - one of eight refineries in the UK - also imports fuel from other countries that has already been refined.
Mr Hendry said work would now focus on securing a long-term future for the site.
1ShareFacebookTwitter.Interest in Coryton oil refinery 'encouraging'
The interest in the Coryton refinery was described as "very encouraging" by energy minister Charles Hendry.
The site halted sales after its Swiss owner, Petroplus, placed the plant into administration last week.
The plant supplies 20% of fuel in the South East.
About 850 people work at the site.
Administrators PwC announced earlier this week it had acquired a cargo of oil which will allow refining work to continue, providing a "breathing space" for the refinery.
'Crucial boost'
Mr Hendry led a meeting of politicians, business officials and unions to discuss the future of the refinery earlier.
"We have had another positive meeting at which the joint administrators updated those present on what they have achieved so far and their planned next steps," he said.
"The deal that allowed petrol and diesel to be delivered to forecourts from the refinery was a crucial boost, while the crude oil delivery acquired on Tuesday was important to maintaining refining operations.
"The collaborative approach taken by the workforce and the refinery's management has also been vital in making these things happen.
"There are critical issues to be resolved in the coming weeks."
As well as refining oil for use as fuel, the Coryton site - one of eight refineries in the UK - also imports fuel from other countries that has already been refined.
Mr Hendry said work would now focus on securing a long-term future for the site.
smiler o
- 03 Feb 2012 08:47
- 412 of 435
Oil Near Six-Week Low Before Jobs Report; Brent Premium Widens
Feb 3, 2012 8:07 AM GMT
Oil traded near a six-week low before a report forecast to show the U.S. added fewer jobs last month than in December. Brent crude’s premium to the New York price is set for the largest weekly gain in a month.
Futures were little changed in New York after dropping a fifth day yesterday, the longest losing streak since August. The U.S. added 140,000 jobs last month after gaining 200,000 in December, according to a Bloomberg News survey of economists before a Labor Department report today. London-traded Brent’s premium to West Texas Intermediate crude, the U.S. benchmark, widened 32 percent this week to the most since Nov. 12.
“Investors will be watching the release of the jobs data, which is a key leading indicator for economic activity and therefore energy demand,” said Michael McCarthy, chief market strategist at CMC Markets Asia Pacific Pty in Sydney. “Concerns about demand has led to some pretty heavy selling in West Texas. Brent has held its ground, so we have seen that spread widen.”
Crude for March delivery was at $96.57 a barrel, up 21 cents, in electronic trading on the New York Mercantile Exchange at 4:02 p.m. Singapore time. The contract fell 1.3 percent to $96.36 yesterday, the lowest since Dec. 19. Prices are down 3.1 percent this week, the most since the week ended Dec. 16.
Brent oil for March settlement climbed as much as 0.4 percent to $112.54 a barrel on the ICE Futures Europe exchange. It gained 0.5 percent yesterday and is up 0.7 percent this week. The European benchmark contract’s premium to WTI was at $15.75, the widest in 12 weeks.
Cushing Supplies
West Texas futures fell this week on signs of surging stockpiles at the Cushing (DOESCROK), Oklahoma, delivery point for the New York contract as output increased in Canada and North Dakota. Inventories at Cushing climbed by 1.48 million barrels to 30.1 million in the week ended Jan. 27, the highest level since Dec. 16, according to U.S. Energy Department released Feb. 1.
The supply increase has pushed the March contract to a discount of $2.61 a barrel to December futures. This market situation, known as a contango, means later deliveries are more expensive than prompt supplies. As recently as Jan. 3, the nearer-term contract was at a premium of $1.85.
As stockpiles at Cushing increased 6.5 percent in the past two weeks, WTI’s discount to Brent crude, the European benchmark, widened to $15.71 a barrel Feb. 2 from $9.90 on Jan. 18 on the ICE Futures Europe exchange in London.
Feb 3, 2012 8:07 AM GMT
Oil traded near a six-week low before a report forecast to show the U.S. added fewer jobs last month than in December. Brent crude’s premium to the New York price is set for the largest weekly gain in a month.
Futures were little changed in New York after dropping a fifth day yesterday, the longest losing streak since August. The U.S. added 140,000 jobs last month after gaining 200,000 in December, according to a Bloomberg News survey of economists before a Labor Department report today. London-traded Brent’s premium to West Texas Intermediate crude, the U.S. benchmark, widened 32 percent this week to the most since Nov. 12.
“Investors will be watching the release of the jobs data, which is a key leading indicator for economic activity and therefore energy demand,” said Michael McCarthy, chief market strategist at CMC Markets Asia Pacific Pty in Sydney. “Concerns about demand has led to some pretty heavy selling in West Texas. Brent has held its ground, so we have seen that spread widen.”
Crude for March delivery was at $96.57 a barrel, up 21 cents, in electronic trading on the New York Mercantile Exchange at 4:02 p.m. Singapore time. The contract fell 1.3 percent to $96.36 yesterday, the lowest since Dec. 19. Prices are down 3.1 percent this week, the most since the week ended Dec. 16.
Brent oil for March settlement climbed as much as 0.4 percent to $112.54 a barrel on the ICE Futures Europe exchange. It gained 0.5 percent yesterday and is up 0.7 percent this week. The European benchmark contract’s premium to WTI was at $15.75, the widest in 12 weeks.
Cushing Supplies
West Texas futures fell this week on signs of surging stockpiles at the Cushing (DOESCROK), Oklahoma, delivery point for the New York contract as output increased in Canada and North Dakota. Inventories at Cushing climbed by 1.48 million barrels to 30.1 million in the week ended Jan. 27, the highest level since Dec. 16, according to U.S. Energy Department released Feb. 1.
The supply increase has pushed the March contract to a discount of $2.61 a barrel to December futures. This market situation, known as a contango, means later deliveries are more expensive than prompt supplies. As recently as Jan. 3, the nearer-term contract was at a premium of $1.85.
As stockpiles at Cushing increased 6.5 percent in the past two weeks, WTI’s discount to Brent crude, the European benchmark, widened to $15.71 a barrel Feb. 2 from $9.90 on Jan. 18 on the ICE Futures Europe exchange in London.
smiler o
- 04 Feb 2012 08:05
- 413 of 435
Oil and banking giants' results due
(UKPA) – 2 hours ago
The reporting season gathers pace next week when some of the UK's biggest companies unveil their annual figures, including oil giant BP, banking group Barclays and the country's largest pharmaceutical firm GlaxoSmithKline.
Hopes have been raised that BP's fourth-quarter results on Tuesday will include its first dividend increase since the Gulf of Mexico oil spill. Shares are just 2% lower than a year ago and have recovered 31% since the 2011-low in September as oil prices remained close to the 100 US dollars a barrel mark and optimism surrounding its recovery following the fatal Deepwater Horizon explosion improved.
City analysts currently forecast a fourth-quarter dividend of 8 US cents a share, up from 7 cents paid in the previous quarter, which will be watched closely as it accounts for one pound in every six invested by pension schemes. However, the supermajor's earnings are expected to have come under pressure in the final three months of the year as its refining business suffers from squeezed margins and its production levels come down amid further disposals.
The FTSE 100 listed company is forecast to report clean replacement cost profit of 7.7 billion US dollars (£4.9 billion) in the fourth quarter, compared with 7.5 billion US dollars (£4.7 billion) the previous year. This comes as production dips from 3.6 million barrels of oil a day to 3.45 million barrels a day. The group was producing more than 4 million barrels a day before the disaster.
The row over bankers' pay will reignite once again on Friday when Barclays kicks off the industry's annual results season amid reports boss Bob Diamond could pocket up to £10 million. But those hoping for a peek at Mr Diamond's pay packet are likely to be disappointed, as the chief executive's deal is not expected to be revealed until the annual report is published in mid-March.
However, the bank is reportedly set to announce plans to cut pay by up to 30% for 24,000 employees at BarCap as it responds to outrage over bankers' bonuses. Earnings for middle ranking and junior staff will be slashed.
Barclays is expected to report pre-tax profits of £4.96 billion for 2011, compared with £6.1 billion the previous year, as its powerhouse investment arm Barclays Capital was hit by volatile market conditions. Barclays shares are 26% lower than a year ago because of market turbulence, driven by increasing global recession fears, but this compares to the 50% fall in Lloyds' share price and the 35% drop at RBS.
Drugs giant GlaxoSmithKline is set to book a healthy £8 billion profit on Tuesday despite a sluggish performance in its final quarter. The economic malaise is expected to have impacted demand for its over-the-counter drugs such as Panadol painkillers and Gaviscon heartburn remedy.
Analysts expect a 1.3% rise in sales in final quarter, down on the 4% growth in the previous three months when strong sales of vaccines, such as a cervical cancer drug, helped it beat expectations.
Full-year sales are expected to be down 3% to £27.6 billion. But profits are forecast to rise 86% to £8.4 billion as it comes up against weak figures from the previous year when it paid out £4 billion in legal claims over the alleged side-effects of some of its drugs.
(UKPA) – 2 hours ago
The reporting season gathers pace next week when some of the UK's biggest companies unveil their annual figures, including oil giant BP, banking group Barclays and the country's largest pharmaceutical firm GlaxoSmithKline.
Hopes have been raised that BP's fourth-quarter results on Tuesday will include its first dividend increase since the Gulf of Mexico oil spill. Shares are just 2% lower than a year ago and have recovered 31% since the 2011-low in September as oil prices remained close to the 100 US dollars a barrel mark and optimism surrounding its recovery following the fatal Deepwater Horizon explosion improved.
City analysts currently forecast a fourth-quarter dividend of 8 US cents a share, up from 7 cents paid in the previous quarter, which will be watched closely as it accounts for one pound in every six invested by pension schemes. However, the supermajor's earnings are expected to have come under pressure in the final three months of the year as its refining business suffers from squeezed margins and its production levels come down amid further disposals.
The FTSE 100 listed company is forecast to report clean replacement cost profit of 7.7 billion US dollars (£4.9 billion) in the fourth quarter, compared with 7.5 billion US dollars (£4.7 billion) the previous year. This comes as production dips from 3.6 million barrels of oil a day to 3.45 million barrels a day. The group was producing more than 4 million barrels a day before the disaster.
The row over bankers' pay will reignite once again on Friday when Barclays kicks off the industry's annual results season amid reports boss Bob Diamond could pocket up to £10 million. But those hoping for a peek at Mr Diamond's pay packet are likely to be disappointed, as the chief executive's deal is not expected to be revealed until the annual report is published in mid-March.
However, the bank is reportedly set to announce plans to cut pay by up to 30% for 24,000 employees at BarCap as it responds to outrage over bankers' bonuses. Earnings for middle ranking and junior staff will be slashed.
Barclays is expected to report pre-tax profits of £4.96 billion for 2011, compared with £6.1 billion the previous year, as its powerhouse investment arm Barclays Capital was hit by volatile market conditions. Barclays shares are 26% lower than a year ago because of market turbulence, driven by increasing global recession fears, but this compares to the 50% fall in Lloyds' share price and the 35% drop at RBS.
Drugs giant GlaxoSmithKline is set to book a healthy £8 billion profit on Tuesday despite a sluggish performance in its final quarter. The economic malaise is expected to have impacted demand for its over-the-counter drugs such as Panadol painkillers and Gaviscon heartburn remedy.
Analysts expect a 1.3% rise in sales in final quarter, down on the 4% growth in the previous three months when strong sales of vaccines, such as a cervical cancer drug, helped it beat expectations.
Full-year sales are expected to be down 3% to £27.6 billion. But profits are forecast to rise 86% to £8.4 billion as it comes up against weak figures from the previous year when it paid out £4 billion in legal claims over the alleged side-effects of some of its drugs.
niceonecyril - 04 Feb 2012 08:58 - 414 of 435
smiler o
- 06 Feb 2012 09:13
- 415 of 435
Oil near $97 as traders eye Greek debt talks
SINGAPORE (AP) — Oil prices fell to near $97 a barrel Monday in Asia amid investor concerns about Greek debt talks.
Benchmark crude for March delivery was down 53 cents at $97.31 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.48 to settle at $97.84 on Friday.
Brent crude was down 20 cents at $114.41 a barrel on the ICE Futures Exchange in London.
Traders are wary that Greece may not be able to reach a deal with bondholders for an orderly debt default. Greek political leaders are scheduled to speak later Monday about economic austerity measures brokered by European leaders and the International Monetary Fund.
Investors were cheered by evidence that the U.S. economy may grow this year more than previously expected. The Labor Department said Friday that companies hired 243,000 employees in January, the strongest job growth in nine months. The increase in hiring pushed the unemployment rate down to 8.3 percent.
The Dow Jones industrial average rose 1.2 percent Friday and Asian stock markets gained Monday.
Analysts remain concerned that crude demand in developed countries, particularly those in Europe, will be weak this year.
"Demand continues to be concentrated in the emerging markets," J.P. Morgan said in a report. "In the United States, we see structural demand contractions in gasoline as fuel efficiency measures continue to offset gains in population growth and personal income."
Investors will be closely watching a slew of corporate earnings reports this week for clues about the strength of the U.S. and global economies. Walt Disney, Coca-Cola, and Cisco Systems are scheduled to announce fourth quarter results this week.
In other energy trading, heating oil was down 0.3 cent at $3.11 per gallon and gasoline futures fell 0.5 cent to $2.91 per gallon. Natural gas slid 4.8 cents to $2.45 per 1,000 cubic feet.
SINGAPORE (AP) — Oil prices fell to near $97 a barrel Monday in Asia amid investor concerns about Greek debt talks.
Benchmark crude for March delivery was down 53 cents at $97.31 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.48 to settle at $97.84 on Friday.
Brent crude was down 20 cents at $114.41 a barrel on the ICE Futures Exchange in London.
Traders are wary that Greece may not be able to reach a deal with bondholders for an orderly debt default. Greek political leaders are scheduled to speak later Monday about economic austerity measures brokered by European leaders and the International Monetary Fund.
Investors were cheered by evidence that the U.S. economy may grow this year more than previously expected. The Labor Department said Friday that companies hired 243,000 employees in January, the strongest job growth in nine months. The increase in hiring pushed the unemployment rate down to 8.3 percent.
The Dow Jones industrial average rose 1.2 percent Friday and Asian stock markets gained Monday.
Analysts remain concerned that crude demand in developed countries, particularly those in Europe, will be weak this year.
"Demand continues to be concentrated in the emerging markets," J.P. Morgan said in a report. "In the United States, we see structural demand contractions in gasoline as fuel efficiency measures continue to offset gains in population growth and personal income."
Investors will be closely watching a slew of corporate earnings reports this week for clues about the strength of the U.S. and global economies. Walt Disney, Coca-Cola, and Cisco Systems are scheduled to announce fourth quarter results this week.
In other energy trading, heating oil was down 0.3 cent at $3.11 per gallon and gasoline futures fell 0.5 cent to $2.91 per gallon. Natural gas slid 4.8 cents to $2.45 per 1,000 cubic feet.
smiler o
- 07 Feb 2012 10:18
- 416 of 435
Tue Feb 7, 2012 4:01am EST
* Oil spill bill hits $43 bln
* Q4 underlying profits up 14 pct year on year
* Dividend increased to 8 cents a share from 7 cents
By Tom Bergin
LONDON, Feb 6 (Reuters) - BP said it was preparing "vigorously" for lawsuits related to its Gulf of Mexico oil spill, which are due to start later this month, as it unveiled a rise in fourth-quarter earnings boosted by higher oil prices and one-off gains.
Chief Executive Bob Dudley said on Tuesday BP was ready to settle on "fair and reasonable terms" but added he was also ready to fight.
The comments came as the company unveiled fourth-quarter results which showed its estimate for the total cost of the spill rose by $1.8 billion in 2011 to $43 billion. Some analysts think the final figure could be much higher.
The increased estimate reflected higher costs of shoreline clean up, which BP said was now largely complete, and a new $500 million charge related to legal costs beyond 2012.
BP had already set aside over $1 billion to pay its lawyers, suggesting the disaster will end up a major boon for attorneys.
The London-based oil giant said it faced around 600 civil lawsuits from people in states as far away as South Carolina and Kentucky, as well as litigation from the government and Gulf Coast states.
Europe's second-largest oil group by market capitalisation said contributions from its partners in the blown-out Macondo well, Anadarko Petroleum and Japan's Mitsui, would reduce the final bill it faced.
The over $5 billion BP has received has contributed to the $20 billion fund created to compensate those impacted by the United States' worst-ever offshore oil spill, and will allow BP to end its own payments into the fund in 2012, a year earlier than expected.
Progress in meeting the costs of the spill allowed BP to announce an increase in its dividend, which had been cut at the height of the spill in 2010.
BP lifted the quarterly payout to 8 cents a share from 7 cents, backed by strong cashflows due to higher oil price.
BP said its replacement cost (RC) net profit rose 65 percent compared to the same period last year, to $7.61 billion in the quarter, boosted by a $4 billion contribution from Anadarko.
Stripping out one-offs, the result rose 14 percent to $4.99 billion, in line with an I/B/E/S consensus forecast of $4.89 billion. Rival Royal Dutch Shell Plc reported an 18 percent rise in underlying profits in the quarter while industry leader Exxon Mobil only managed a 2 percent rise.
BP's muted increase was despite a lower than expected tax rate, and a 26 percent rise in the Brent crude price in the quarter compared to the same period of 2010.
BP shares traded up 0.4 percent at 492 pence at 0840 GMT, outstripping a 0.1 percent rise in the STOXX Europe 600 Oil and Gas index.
dreamcatcher
- 12 Feb 2012 18:18
- 417 of 435
smiler o
- 15 Feb 2012 09:51
- 418 of 435
UPDATE 4-Oil at $118, supply worry trumps Europe gloom
LONDON, Feb 15 (Reuters) - Oil rose to $118 a barrel on Wednesday as real and threatened supply disruptions outweighed concern about the health of the global economy and Greece's struggle to avoid bankruptcy.
An explosion hit a pipeline in Syria on Wednesday, adding to earlier disruptions such as a strike in Yemen that has halted output at its largest oilfield and the seizure by Sudan of more of South Sudan's oil in a dispute over payment issues.
Brent crude was up 80 cents at $118.15 a barrel at 0908 GMT, having traded as high as $118.30 earlier in the session. U.S. crude rose 86 cents to $101.60.
"The oil market continues to be caught between a deterioration in the global economy and supply issues, including actual supply disruptions in Sudan," said Jeremy Friesen, a commodity strategist at Societe Generale.
"I don't think it's realistic to expect that risks in the Middle East will disappear."
Oil is also drawing support from the prospect of disruption to Iranian crude supplies as a result of worsening tensions over Tehran's nuclear programme.
Iran is the second-largest producer in the Middle East and the European Union has banned Iranian crude exports from July 1, prompting buyers of its crude to look for alternative supplies.
Supply risks far outweigh the euro zone's debt problems and will probably keep Brent above $110, Friesen said.
Euro zone finance ministers have dropped plans for a face-to-face meeting on Wednesday on Greece's new international bailout, saying party leaders in Athens failed to provide the required commitment to reform.
Time is running out for Greece as it faces a chaotic default if it cannot meet 14.5 billion euros in debt repayments due on March 20 and its brinkmanship has forced some EU leaders to suggest Athens should leave the euro zone currency union.
In a sign that the euro zone may succumb to a mild recession, figures on Wednesday showed Germany's economy contracted slightly in the last three months of the year while France eked out an anaemic level of growth.
Even so, the latest indications from the United States, suggest a firm foundation for an economic recovery. Later on Wednesday, the latest weekly U.S. oil supply report will be in focus.
The U.S. Energy Information Administration's inventory report is scheduled for release at 1530 GMT. Analysts expect crude oil stocks to rise by 1.5 million barrels.
In a precursor to the EIA report, oil industry group the American Petroleum Institute said on Tuesday crude stocks rose a more-than-expected 2.9 million barrels.
LONDON, Feb 15 (Reuters) - Oil rose to $118 a barrel on Wednesday as real and threatened supply disruptions outweighed concern about the health of the global economy and Greece's struggle to avoid bankruptcy.
An explosion hit a pipeline in Syria on Wednesday, adding to earlier disruptions such as a strike in Yemen that has halted output at its largest oilfield and the seizure by Sudan of more of South Sudan's oil in a dispute over payment issues.
Brent crude was up 80 cents at $118.15 a barrel at 0908 GMT, having traded as high as $118.30 earlier in the session. U.S. crude rose 86 cents to $101.60.
"The oil market continues to be caught between a deterioration in the global economy and supply issues, including actual supply disruptions in Sudan," said Jeremy Friesen, a commodity strategist at Societe Generale.
"I don't think it's realistic to expect that risks in the Middle East will disappear."
Oil is also drawing support from the prospect of disruption to Iranian crude supplies as a result of worsening tensions over Tehran's nuclear programme.
Iran is the second-largest producer in the Middle East and the European Union has banned Iranian crude exports from July 1, prompting buyers of its crude to look for alternative supplies.
Supply risks far outweigh the euro zone's debt problems and will probably keep Brent above $110, Friesen said.
Euro zone finance ministers have dropped plans for a face-to-face meeting on Wednesday on Greece's new international bailout, saying party leaders in Athens failed to provide the required commitment to reform.
Time is running out for Greece as it faces a chaotic default if it cannot meet 14.5 billion euros in debt repayments due on March 20 and its brinkmanship has forced some EU leaders to suggest Athens should leave the euro zone currency union.
In a sign that the euro zone may succumb to a mild recession, figures on Wednesday showed Germany's economy contracted slightly in the last three months of the year while France eked out an anaemic level of growth.
Even so, the latest indications from the United States, suggest a firm foundation for an economic recovery. Later on Wednesday, the latest weekly U.S. oil supply report will be in focus.
The U.S. Energy Information Administration's inventory report is scheduled for release at 1530 GMT. Analysts expect crude oil stocks to rise by 1.5 million barrels.
In a precursor to the EIA report, oil industry group the American Petroleum Institute said on Tuesday crude stocks rose a more-than-expected 2.9 million barrels.
smiler o
- 15 Feb 2012 09:55
- 419 of 435
Why Moody's matters more than oil price
Trumpets were sounded, church bells rang but there was no smug air to the governor's words after news that inflation fell to its lowest level for more than a year.
"Look at us," you would have thought Mervyn King said, "we're beginning to get inflation under control and close to the 2% target."
Close, but at 3.6% it's still a good way off being there. In fact, George Osborne still made the Bank of England governor adhere to the old of rule of "if inflation's over 2% I want a personal letter telling me what the devil's going on". In essence, the governor has to write the chancellor's excuse note, one he can present to his friends or colleagues in government to explain why he was more off target than the meteorologists ahead of last weekend's match against Ireland.
It's getting easier for him because last month was the first true like-for-like comparison in Vat, given it was raised to 20% in January 2011. But George, ever the cautious and wise old fox, isn't getting carried away.
"The unwelcome contribution of sluggish growth and high inflation over the past two years is a reflection of the need for the economy to rebalance following the financial crisis and associated deep recession, together with rises in the costs of energy and imports," he wrote, probably by candle light and using a pot of ink and a quill.
"Although inflation is now falling broadly as expected, the process of rebalancing still has a long way to go. Growth remains weak and unemployment high."
More learned experts than this reporter point out that inflation is the Bank of England's focus and it'll be marked on how it has managed prices.
Knowing that any action it takes will take a while to effect, it has to be looking ahead and trying to predict what will happen two years down the line.
That's exceedingly difficult, especially when you have the likes of oil prices jumping up and down like a fiddler's elbow.
North Sea crude is through the £75 a barrel level, a high not posted since April 2011.
And with George aiming to keep international lenders happy following Moody's raised eyebrow yesterday morning, you can bet your bottom dollar, ironically, that he'll be less likely to drop any of the three 1p rises in petrol duty which are planned.
Motorists should be just as concerned about the AAA as they are with the AA.
Trumpets were sounded, church bells rang but there was no smug air to the governor's words after news that inflation fell to its lowest level for more than a year.
"Look at us," you would have thought Mervyn King said, "we're beginning to get inflation under control and close to the 2% target."
Close, but at 3.6% it's still a good way off being there. In fact, George Osborne still made the Bank of England governor adhere to the old of rule of "if inflation's over 2% I want a personal letter telling me what the devil's going on". In essence, the governor has to write the chancellor's excuse note, one he can present to his friends or colleagues in government to explain why he was more off target than the meteorologists ahead of last weekend's match against Ireland.
It's getting easier for him because last month was the first true like-for-like comparison in Vat, given it was raised to 20% in January 2011. But George, ever the cautious and wise old fox, isn't getting carried away.
"The unwelcome contribution of sluggish growth and high inflation over the past two years is a reflection of the need for the economy to rebalance following the financial crisis and associated deep recession, together with rises in the costs of energy and imports," he wrote, probably by candle light and using a pot of ink and a quill.
"Although inflation is now falling broadly as expected, the process of rebalancing still has a long way to go. Growth remains weak and unemployment high."
More learned experts than this reporter point out that inflation is the Bank of England's focus and it'll be marked on how it has managed prices.
Knowing that any action it takes will take a while to effect, it has to be looking ahead and trying to predict what will happen two years down the line.
That's exceedingly difficult, especially when you have the likes of oil prices jumping up and down like a fiddler's elbow.
North Sea crude is through the £75 a barrel level, a high not posted since April 2011.
And with George aiming to keep international lenders happy following Moody's raised eyebrow yesterday morning, you can bet your bottom dollar, ironically, that he'll be less likely to drop any of the three 1p rises in petrol duty which are planned.
Motorists should be just as concerned about the AAA as they are with the AA.
smiler o
- 20 Feb 2012 15:53
- 420 of 435
Oil price hits eight-month high
Brent crude at $121.15 a barrel following news of Iran's oil export ban to UK and French companies
Brent crude hit its highest point in eight months on Monday as Iran halted exports to British and French companies ahead of a European Union embargo.
Oil prices edged above $121 a barrel. Traders also said that policy developments in China and hopes that Greece's second financial package will be agreed on Monday were helping to push up prices.
Over the past month fears of supply disruption in Iran and upbeat economic data from the world's largest oil user, the United States, have helped raise oil prices including Brent, which is sourced from the North Sea. The combination of factors driving demand took the price to $121.15 a barrel during Monday morning trading, a level not seen since mid-June last year.
Opec's second largest producer, Iran, stopped oil sales to British and French companies on Sunday, retaliating against tightening EU sanctions imposed over its disputed nuclear programme. European oil buyers had already made big cuts in purchases from Iran in recent months ahead of sanctions.
While the move is unlikely to have a large effect on UK oil refiners – they source less than 1% of their oil from Iran – it remains emotive in oil markets. "This is supply related so it had a psychological impact," Ken Hasegawa, a Tokyo-based commodity sales manager at Newedge Japan, told Reuters.
The EU has already slapped sanctions on Iran and has vowed to stop buying all Iranian oil by July. Iran was supplying more than 700,000 barrels a day to the EU last year but this had already been cut back by 300,000 before Sunday's move, according to industry website liveoilprices.co.uk. BP is among a number of major companies that have already stopped importing oil from Iran, triggering speculation that Sunday's announcement was merely political posturing.
Meanwhile, analysts at investment bank JP Morgan Chase have raised their 2012 price forecast for Brent crude by $6 to $118 a barrel because of supply risks and rising economic growth. It also hiked its forecast for 2013 to $125 a barrel, up from $121, arguing that geopolitical issues are creating increased demand for crude.
Investors' appetite for riskier assets after China's central bank boosted lending capacity by more than $50bn (£32bn), as well as a softer dollar against the euro on expectations Greece would secure a debt bailout this week, are also supporting oil prices.
Buoyant prices have also pushed shares in BP to their highest level for almost a year.
Brent crude at $121.15 a barrel following news of Iran's oil export ban to UK and French companies
Brent crude hit its highest point in eight months on Monday as Iran halted exports to British and French companies ahead of a European Union embargo.
Oil prices edged above $121 a barrel. Traders also said that policy developments in China and hopes that Greece's second financial package will be agreed on Monday were helping to push up prices.
Over the past month fears of supply disruption in Iran and upbeat economic data from the world's largest oil user, the United States, have helped raise oil prices including Brent, which is sourced from the North Sea. The combination of factors driving demand took the price to $121.15 a barrel during Monday morning trading, a level not seen since mid-June last year.
Opec's second largest producer, Iran, stopped oil sales to British and French companies on Sunday, retaliating against tightening EU sanctions imposed over its disputed nuclear programme. European oil buyers had already made big cuts in purchases from Iran in recent months ahead of sanctions.
While the move is unlikely to have a large effect on UK oil refiners – they source less than 1% of their oil from Iran – it remains emotive in oil markets. "This is supply related so it had a psychological impact," Ken Hasegawa, a Tokyo-based commodity sales manager at Newedge Japan, told Reuters.
The EU has already slapped sanctions on Iran and has vowed to stop buying all Iranian oil by July. Iran was supplying more than 700,000 barrels a day to the EU last year but this had already been cut back by 300,000 before Sunday's move, according to industry website liveoilprices.co.uk. BP is among a number of major companies that have already stopped importing oil from Iran, triggering speculation that Sunday's announcement was merely political posturing.
Meanwhile, analysts at investment bank JP Morgan Chase have raised their 2012 price forecast for Brent crude by $6 to $118 a barrel because of supply risks and rising economic growth. It also hiked its forecast for 2013 to $125 a barrel, up from $121, arguing that geopolitical issues are creating increased demand for crude.
Investors' appetite for riskier assets after China's central bank boosted lending capacity by more than $50bn (£32bn), as well as a softer dollar against the euro on expectations Greece would secure a debt bailout this week, are also supporting oil prices.
Buoyant prices have also pushed shares in BP to their highest level for almost a year.
smiler o
- 21 Feb 2012 10:45
- 421 of 435
Asia Stocks Fall as Oil Seen Crimping Optimism After Greece Deal
Feb. 21 (Bloomberg) -- Asian stocks fell, with the regional benchmark index retreating from a six-month high, as higher oil prices threatened to curb spending and accelerate inflation, tempering optimism after Euro-area finance ministers agreed to a bailout for Greece.
Korean Air Lines Co. fell 6.4 percent after being cut to “sell” by Deutsche Bank AG amid weak cargo markets and rising fuel costs. Mazda Motor Corp., Japan's least profitable major automaker, slumped 9.9 percent on a report it plans to raise capital. National Australia Bank Ltd., the nation's No. 4 lender by market value, rose 1 percent after the Reserve Bank of Australia said it kept interest rates unchanged as European risks abated and can ease monetary policy if conditions worsen.
The MSCI Asia Pacific Index retreated 0.3 percent to 127.67 as of 5:06 p.m. in Tokyo, with five stocks falling for every four that rose. The gauge yesterday closed at its highest level since Aug. 4, and moved within 1 percent of completing a 20 percent advance from its October low and entering a so-called bull market.
The Euro-area agreement “is positive news for the market, as it eases one of its concerns,” said Ayako Sera, a market strategist in Tokyo at Sumitomo Trust & Banking Co., which manages the equivalent of $298 billion. “But the market has been rising on the hopes of the agreement, so when the fact comes out the focus will turn to whether Greece will be able to actually implement its deficit cut promises. The market will be dominated by uncertainties going forward.”
Asia Earnings Slide
Of 473 companies in the Asia-Pacific gauge that have reported net income since Jan. 9, more than half have fallen short of analysts' estimates and profit has fallen 59 percent on average, according to data compiled by Bloomberg. That compares with the U.S., where net income has grown an average of 5.1 percent for Standard & Poor's 500 Index companies that have reported, the data show.
Japan's Nikkei 225 Stock Average fell 0.2 percent. South Korea's Kospi Index was little changed after rising as much as 0.3 percent. Australia's S&P/ASX 200 Index increased 0.8 percent, reversing an earlier decline as the Reserve Bank of Australia released minutes of a Feb. 7 meeting that said risks of an “extremely bad outcome” from Europe have “diminished somewhat.”
Feb. 21 (Bloomberg) -- Asian stocks fell, with the regional benchmark index retreating from a six-month high, as higher oil prices threatened to curb spending and accelerate inflation, tempering optimism after Euro-area finance ministers agreed to a bailout for Greece.
Korean Air Lines Co. fell 6.4 percent after being cut to “sell” by Deutsche Bank AG amid weak cargo markets and rising fuel costs. Mazda Motor Corp., Japan's least profitable major automaker, slumped 9.9 percent on a report it plans to raise capital. National Australia Bank Ltd., the nation's No. 4 lender by market value, rose 1 percent after the Reserve Bank of Australia said it kept interest rates unchanged as European risks abated and can ease monetary policy if conditions worsen.
The MSCI Asia Pacific Index retreated 0.3 percent to 127.67 as of 5:06 p.m. in Tokyo, with five stocks falling for every four that rose. The gauge yesterday closed at its highest level since Aug. 4, and moved within 1 percent of completing a 20 percent advance from its October low and entering a so-called bull market.
The Euro-area agreement “is positive news for the market, as it eases one of its concerns,” said Ayako Sera, a market strategist in Tokyo at Sumitomo Trust & Banking Co., which manages the equivalent of $298 billion. “But the market has been rising on the hopes of the agreement, so when the fact comes out the focus will turn to whether Greece will be able to actually implement its deficit cut promises. The market will be dominated by uncertainties going forward.”
Asia Earnings Slide
Of 473 companies in the Asia-Pacific gauge that have reported net income since Jan. 9, more than half have fallen short of analysts' estimates and profit has fallen 59 percent on average, according to data compiled by Bloomberg. That compares with the U.S., where net income has grown an average of 5.1 percent for Standard & Poor's 500 Index companies that have reported, the data show.
Japan's Nikkei 225 Stock Average fell 0.2 percent. South Korea's Kospi Index was little changed after rising as much as 0.3 percent. Australia's S&P/ASX 200 Index increased 0.8 percent, reversing an earlier decline as the Reserve Bank of Australia released minutes of a Feb. 7 meeting that said risks of an “extremely bad outcome” from Europe have “diminished somewhat.”
smiler o
- 21 Feb 2012 10:46
- 422 of 435
U.K.’s Hague Says Halt in Iran Oil Sales Will Have ‘No Impact’
February 21, 2012, 3:31 AM EST
Feb. 20 (Bloomberg) -- Iran’s decision to halt sales of crude oil to French and British buyers to pre-empt a European Union ban on imports will have “no impact on Britain’s energy security or supplies,” said U.K. Foreign Secretary William Hague.
Iran “will give its crude oil to new customers instead of French and U.K. companies,” the Shana oil ministry news website reported, citing Alireza Nikzad Rahbar, a ministry spokesman. The announcement came as OPEC’s second-biggest producer negotiates contracts to supply China.
The action may “prompt further price gains for crude,” John Caiazzo, president of Acuvest Commodity Brokers Inc. in Temecula, California, wrote in a note to clients today.
France got 4 percent of its oil imports from Iran in the first half of 2011 and the U.K. 1 percent, according to the U.S. Energy Information Administration. Iran will raise crude volumes sent to China “soon,” the state Mehr news agency said Feb. 16.
The producer is suspending exports as tension rises in the Gulf over its nuclear program, sending oil prices to the highest level in nine months. The EU and U.S. have imposed additional sanctions against the country, restricting trade and financial transactions. Iran, the largest producer in the Organization of Petroleum Exporting Countries after Saudi Arabia, is also under four rounds of United Nations sanctions.
“The Iranian government can act to bring sanctions to an end,” Hague said in comments today to lawmakers in the House of Commons in London. “Our ultimate goal is a return to negotiations that addresses all the issues of concern about Iran’s nuclear program and the successful conclusion of those negotiations.”
Threatened Cuts
The country threatened to halt shipments to Italy, Spain, Portugal, Greece, France and the Netherlands when it summoned their ambassadors to the Foreign Ministry on Feb. 15 to protest the EU’s punitive measures, state media reported. Iran would end sales of crude to the six countries unless they agreed to long- term contracts and payment guarantees, state-run Press TV reported that day, without citing anyone.
EU nations bought a combined 18 percent of Iran’s exports of crude and condensates, or 452,000 barrels a day, in the first half of 2011, according to the EIA’s most recent data. France purchased 49,000 barrels a day and the U.K. 11,000 barrels.
The EU said today its member countries are cutting oil purchases from Iran and have sufficient reserves to deal with disruptions. Some of the 27 nations, such as the U.K., Austria, Portugal, Belgium and the Netherlands, have already stopped buying and others including Italy, Spain and Greece are reducing imports, Marlene Holzner, an energy spokeswoman for the European Commission, said in an e-mailed reply to questions.
Oil Price
Oil for March delivery rose as much as $2.12 to $105.36 a barrel in electronic trading on the New York Mercantile Exchange, the highest intraday price since May 5. It increased 4.6 percent last week, taking its gain this year to 6.6 percent.
Total SA, France’s largest oil company, stopped buying oil from Iran, Chief Executive Officer Christophe De Margerie told Bloomberg Television on Jan. 27 in Davos. Nobody answered calls by Bloomberg News to the French foreign ministry yesterday.
An official for Royal Dutch Shell Plc, the biggest European energy company, declined to comment to Bloomberg. BP Plc doesn’t buy Iranian crude, David Nicholas, a London-based spokesman, said by telephone.
EU emergency stocks are 136 million metric tons, equivalent to 120 days of consumption, or 4.5 years of the region’s imports from Iran, Holzner said, adding that no member state has asked for a release of reserves. EU rules require countries to hold emergency fuel stocks of at least 90 days of the average daily domestic consumption in the previous calendar year.
China Deal
Iran produced 3.545 million barrels of crude a day in January, data compiled by Bloomberg show. Iranian exports in 2010 averaged 2.154 million barrels a day, according to the EIA.
China and Iran have agreed on pricing and sales methods for a supply contract, Mehr said, citing an unidentified official at the National Iranian Oil Co. An NIOC official at the company’s Singapore crude-marketing office, who asked not to be identified in line with company policy, declined to comment on the report.
Iran held talks last month with China International United Petroleum & Chemical Corp., the nation’s biggest oil trader, over the Chinese company’s 2012 supply contract, two people with knowledge of discussions said Jan. 10. The accords between the buyer, known as Unipec, and National Iranian Oil were scheduled to be agreed on last year, according to the people, who declined to be identified because the information is confidential.
China buys 22 percent of Iran’s exports, according to the EIA. It has bought an additional 200,000 barrels a day of oil from Iran in recent months, according to the IEA. The country, the second-biggest crude consumer, may continue to increase imports from the country, Didier Houssin, director of energy markets and security, said today at a conference in London.
--With assistance from Ayesha Daya in Dubai, Andrew Roberts in Paris, Alexander Kwiatkowski in Singapore, Ewa Krukowska in Brussels, Grant Smith and Thomas Penny in London and Seth Stern in Washington. Editors: John Walcott, Terry Atlas
February 21, 2012, 3:31 AM EST
Feb. 20 (Bloomberg) -- Iran’s decision to halt sales of crude oil to French and British buyers to pre-empt a European Union ban on imports will have “no impact on Britain’s energy security or supplies,” said U.K. Foreign Secretary William Hague.
Iran “will give its crude oil to new customers instead of French and U.K. companies,” the Shana oil ministry news website reported, citing Alireza Nikzad Rahbar, a ministry spokesman. The announcement came as OPEC’s second-biggest producer negotiates contracts to supply China.
The action may “prompt further price gains for crude,” John Caiazzo, president of Acuvest Commodity Brokers Inc. in Temecula, California, wrote in a note to clients today.
France got 4 percent of its oil imports from Iran in the first half of 2011 and the U.K. 1 percent, according to the U.S. Energy Information Administration. Iran will raise crude volumes sent to China “soon,” the state Mehr news agency said Feb. 16.
The producer is suspending exports as tension rises in the Gulf over its nuclear program, sending oil prices to the highest level in nine months. The EU and U.S. have imposed additional sanctions against the country, restricting trade and financial transactions. Iran, the largest producer in the Organization of Petroleum Exporting Countries after Saudi Arabia, is also under four rounds of United Nations sanctions.
“The Iranian government can act to bring sanctions to an end,” Hague said in comments today to lawmakers in the House of Commons in London. “Our ultimate goal is a return to negotiations that addresses all the issues of concern about Iran’s nuclear program and the successful conclusion of those negotiations.”
Threatened Cuts
The country threatened to halt shipments to Italy, Spain, Portugal, Greece, France and the Netherlands when it summoned their ambassadors to the Foreign Ministry on Feb. 15 to protest the EU’s punitive measures, state media reported. Iran would end sales of crude to the six countries unless they agreed to long- term contracts and payment guarantees, state-run Press TV reported that day, without citing anyone.
EU nations bought a combined 18 percent of Iran’s exports of crude and condensates, or 452,000 barrels a day, in the first half of 2011, according to the EIA’s most recent data. France purchased 49,000 barrels a day and the U.K. 11,000 barrels.
The EU said today its member countries are cutting oil purchases from Iran and have sufficient reserves to deal with disruptions. Some of the 27 nations, such as the U.K., Austria, Portugal, Belgium and the Netherlands, have already stopped buying and others including Italy, Spain and Greece are reducing imports, Marlene Holzner, an energy spokeswoman for the European Commission, said in an e-mailed reply to questions.
Oil Price
Oil for March delivery rose as much as $2.12 to $105.36 a barrel in electronic trading on the New York Mercantile Exchange, the highest intraday price since May 5. It increased 4.6 percent last week, taking its gain this year to 6.6 percent.
Total SA, France’s largest oil company, stopped buying oil from Iran, Chief Executive Officer Christophe De Margerie told Bloomberg Television on Jan. 27 in Davos. Nobody answered calls by Bloomberg News to the French foreign ministry yesterday.
An official for Royal Dutch Shell Plc, the biggest European energy company, declined to comment to Bloomberg. BP Plc doesn’t buy Iranian crude, David Nicholas, a London-based spokesman, said by telephone.
EU emergency stocks are 136 million metric tons, equivalent to 120 days of consumption, or 4.5 years of the region’s imports from Iran, Holzner said, adding that no member state has asked for a release of reserves. EU rules require countries to hold emergency fuel stocks of at least 90 days of the average daily domestic consumption in the previous calendar year.
China Deal
Iran produced 3.545 million barrels of crude a day in January, data compiled by Bloomberg show. Iranian exports in 2010 averaged 2.154 million barrels a day, according to the EIA.
China and Iran have agreed on pricing and sales methods for a supply contract, Mehr said, citing an unidentified official at the National Iranian Oil Co. An NIOC official at the company’s Singapore crude-marketing office, who asked not to be identified in line with company policy, declined to comment on the report.
Iran held talks last month with China International United Petroleum & Chemical Corp., the nation’s biggest oil trader, over the Chinese company’s 2012 supply contract, two people with knowledge of discussions said Jan. 10. The accords between the buyer, known as Unipec, and National Iranian Oil were scheduled to be agreed on last year, according to the people, who declined to be identified because the information is confidential.
China buys 22 percent of Iran’s exports, according to the EIA. It has bought an additional 200,000 barrels a day of oil from Iran in recent months, according to the IEA. The country, the second-biggest crude consumer, may continue to increase imports from the country, Didier Houssin, director of energy markets and security, said today at a conference in London.
--With assistance from Ayesha Daya in Dubai, Andrew Roberts in Paris, Alexander Kwiatkowski in Singapore, Ewa Krukowska in Brussels, Grant Smith and Thomas Penny in London and Seth Stern in Washington. Editors: John Walcott, Terry Atlas
smiler o
- 01 Mar 2012 08:54
- 423 of 435
Oil falls below $107 amid weak US gasoline demand
By ALEX KENNEDY, Associated Press – 22 minutes ago
SINGAPORE (AP) — Oil prices fell to below $107 a barrel Thursday in Asia after U.S. crude supplies grew more than expected amid weak gasoline demand.
Benchmark oil for April delivery was down 39 cents to $106.68 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 52 cents to $107.07 per barrel in New York on Wednesday.
Brent crude rose 2 cents to $122.68 per barrel in London.
The Energy Department said Wednesday that inventories of crude oil rose by 4.2 million barrels last week. Analysts were expecting an increase of just 1 million barrels. Demand for gasoline over the four weeks ended Feb. 24 was 6.7 percent lower than a year earlier, the department said.
Some analysts expect higher fuel costs will eventually undermine demand and push crude prices lower. U.S. retail gasoline prices rose to an average of $3.73 per gallon, 30 cents higher than a month ago.
Other economic indicators were more encouraging. The U.S. economy grew 3 percent in the fourth quarter, slightly more than the initial estimate of 2.8 percent. In another report, the Institute for Supply Management-Chicago said manufacturing in the Midwest region rose to a 10-month high in February.
The latest figures reinforce largely positive economic data from the U.S. during the last few months. Better than expected U.S. economic growth and moves by central banks to boost global money supply have helped push crude up to near $110 earlier this week from $75 in October.
Concern that tension over Iran's nuclear program could lead to an armed conflict and crude supply disruptions has also helped keep prices near nine-month highs. The U.S. and Europe are imposing sanctions on Iran while the Middle Eastern country has threatened to cut supplies to some countries and tensionshalt oil tankers passing through the Persian Gulf's Strait of Hormuz.
"Rising in the Middle East could easily add another $20 to $40 to oil prices," Bank of America Merrill Lynch said in a report. "A geopolitically prompted supply side shock is ultimately what most investors are concerned about."
In other energy trading, heating oil rose 0.2 cent to $3.21 per gallon and gasoline futures were steady at $3.26 per gallon. Natural gas fell 2.6 cents at $2.59 per 1,000 cubic feet.
By ALEX KENNEDY, Associated Press – 22 minutes ago
SINGAPORE (AP) — Oil prices fell to below $107 a barrel Thursday in Asia after U.S. crude supplies grew more than expected amid weak gasoline demand.
Benchmark oil for April delivery was down 39 cents to $106.68 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 52 cents to $107.07 per barrel in New York on Wednesday.
Brent crude rose 2 cents to $122.68 per barrel in London.
The Energy Department said Wednesday that inventories of crude oil rose by 4.2 million barrels last week. Analysts were expecting an increase of just 1 million barrels. Demand for gasoline over the four weeks ended Feb. 24 was 6.7 percent lower than a year earlier, the department said.
Some analysts expect higher fuel costs will eventually undermine demand and push crude prices lower. U.S. retail gasoline prices rose to an average of $3.73 per gallon, 30 cents higher than a month ago.
Other economic indicators were more encouraging. The U.S. economy grew 3 percent in the fourth quarter, slightly more than the initial estimate of 2.8 percent. In another report, the Institute for Supply Management-Chicago said manufacturing in the Midwest region rose to a 10-month high in February.
The latest figures reinforce largely positive economic data from the U.S. during the last few months. Better than expected U.S. economic growth and moves by central banks to boost global money supply have helped push crude up to near $110 earlier this week from $75 in October.
Concern that tension over Iran's nuclear program could lead to an armed conflict and crude supply disruptions has also helped keep prices near nine-month highs. The U.S. and Europe are imposing sanctions on Iran while the Middle Eastern country has threatened to cut supplies to some countries and tensionshalt oil tankers passing through the Persian Gulf's Strait of Hormuz.
"Rising in the Middle East could easily add another $20 to $40 to oil prices," Bank of America Merrill Lynch said in a report. "A geopolitically prompted supply side shock is ultimately what most investors are concerned about."
In other energy trading, heating oil rose 0.2 cent to $3.21 per gallon and gasoline futures were steady at $3.26 per gallon. Natural gas fell 2.6 cents at $2.59 per 1,000 cubic feet.
smiler o
- 01 Mar 2012 08:56
- 424 of 435
Coalition to support UK oil and gas sector, says Business Secretary Vince Cable
Vince Cable said the Government is preparing to offer targeted support for Britain's oil and gas sector as part of a new and "proper industrial policy".
In a move that represents a shift from last year's controversial tax raid on North Sea oil, the Business Secretary said the Government wanted to help the sector "re-energise" its supply chains, which include thousands of small businesses.
In a speech in London, Mr Cable said targeted Government support was needed to create a "different kind of economy" based on manufacturing and trade. Britain could not "just hope it happens naturally", he said. He and Charles Hendry, the Energy Minister, will chair meetings to "see how together we can support this important industry".
He insisted the plans were different to the "cack-handed interventionalism of the 1960s and 1970s" and denied that the Government was reverting to "picking winners" rather than trying to create a benign business environment.
But he argued: "There is a case for being more explicit about the choices we are making and linking them to a clearly articulated economic strategy."
With a nod to the previous Labour government, Mr Cable said Britain's car manufacturing industry had benefited from the "explicit choices" of government support. Other industries to be targeted include aerospace, media, film and fashion.
Vince Cable said the Government is preparing to offer targeted support for Britain's oil and gas sector as part of a new and "proper industrial policy".
In a move that represents a shift from last year's controversial tax raid on North Sea oil, the Business Secretary said the Government wanted to help the sector "re-energise" its supply chains, which include thousands of small businesses.
In a speech in London, Mr Cable said targeted Government support was needed to create a "different kind of economy" based on manufacturing and trade. Britain could not "just hope it happens naturally", he said. He and Charles Hendry, the Energy Minister, will chair meetings to "see how together we can support this important industry".
He insisted the plans were different to the "cack-handed interventionalism of the 1960s and 1970s" and denied that the Government was reverting to "picking winners" rather than trying to create a benign business environment.
But he argued: "There is a case for being more explicit about the choices we are making and linking them to a clearly articulated economic strategy."
With a nod to the previous Labour government, Mr Cable said Britain's car manufacturing industry had benefited from the "explicit choices" of government support. Other industries to be targeted include aerospace, media, film and fashion.
Stan
- 01 Mar 2012 11:29
- 425 of 435
Commodities: Oil taps into 9% rise in February
Crude oil prices fell on Wednesday after a weekly US government report showed a larger than expected glut in oil supplies, an indication of weak demand.
The US Energy Information Administration said oil inventories increased 4.2m barrels in the last week, compared to forecasts of an 800,000 barrel-increase.
Gasoline supplies fell 1.6m barrels, the report said while inventories of distillates, which include heating oil and diesel, dropped 2.1m barrels. Analysts had predicted gasoline stocks to rise 100,000 barrels and distillate stocks to decline 600,000 barrels.
Light, sweet crude for April delivery climbed 52 cents to settle at $107.07 a barrel on the New York Mercantile Exchange, after a last minute buyers moved in.
Crude finished the month up nearly 9% after a strong rally on concern about tensions between Iran and the West.
Crude oil prices fell on Wednesday after a weekly US government report showed a larger than expected glut in oil supplies, an indication of weak demand.
The US Energy Information Administration said oil inventories increased 4.2m barrels in the last week, compared to forecasts of an 800,000 barrel-increase.
Gasoline supplies fell 1.6m barrels, the report said while inventories of distillates, which include heating oil and diesel, dropped 2.1m barrels. Analysts had predicted gasoline stocks to rise 100,000 barrels and distillate stocks to decline 600,000 barrels.
Light, sweet crude for April delivery climbed 52 cents to settle at $107.07 a barrel on the New York Mercantile Exchange, after a last minute buyers moved in.
Crude finished the month up nearly 9% after a strong rally on concern about tensions between Iran and the West.
Stan
- 08 Mar 2012 10:29
- 426 of 435
Commodities: Oil jumps 1.4%, gold snaps losing streak
Crude oil futures bounced 1.4% on Wednesday after the Federal Reserve said it would consider easing measures and as progress was made on the Greek debt swap.
Crude for April delivery recovered from a weak start to the session to gain $1.46, settling at $106.16 a barrel on the New York Mercantile Exchange.
On the ICE futures exchange Brent crude rose $1.85 at $124.17 a barrel.
Oil prices tracked a broad market rally on Wednesday after a report from the Wall Street Journal suggested that the Fed is considering a new kind of bond-buying programme.
The report is in contrast to comments last week from Fed Chairman Ben Bernanke, which poured cold water on hopes of another bond-buying programme.
Crude oil futures bounced 1.4% on Wednesday after the Federal Reserve said it would consider easing measures and as progress was made on the Greek debt swap.
Crude for April delivery recovered from a weak start to the session to gain $1.46, settling at $106.16 a barrel on the New York Mercantile Exchange.
On the ICE futures exchange Brent crude rose $1.85 at $124.17 a barrel.
Oil prices tracked a broad market rally on Wednesday after a report from the Wall Street Journal suggested that the Fed is considering a new kind of bond-buying programme.
The report is in contrast to comments last week from Fed Chairman Ben Bernanke, which poured cold water on hopes of another bond-buying programme.
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