Oil Retreats After Failing to Hit $70 a Barrel
Oil prices fell on Thursday as investors booked profits after this week's rally, but losses were limited by the continuing efforts of OPEC and its allies to curb supplies. Brent crude futures were down 66 cents at $68.81 a barrel by 1410 GMT, having retreated from a session peak of $69.70, close to its highest level since early February. U.S. West Texas Intermediate (WTI) futures fell 69 cents to $64.48. Oil prices have risen nearly 10 percent in the past two weeks, boosted by a weaker U.S.
Hedge Funds Turn Bearish on Oil, Refined Fuels
Hedge funds and other money managers were turning increasingly bearish towards oil even before prices plunged on Thursday. Hedge funds cut their net long position in the three main futures and options contracts linked to Brent and WTI by 97 million barrels in the week to May 2 (http://tmsnrt.rs/2pqzvW4). Bullish long positions were trimmed by 31 million barrels while bearish short positions increased by 65 million barrels according to data published by regulators and exchanges.
Vitol, Aegean Marine trade First DME-Listed Fuel Oil Derivatives
Energy trader Vitol and shipping fuel company Aegean Marine Petroleum Network swapped 7,000 tonnes of July 180-centistoke in the first-ever trade of fuel oil derivatives on the Dubai Mercantile Exchange, the DME said on Monday. Middle East 180cst and 380cst high-sulfur fuel oil (HSFO) first became available for trading on the Dubai exchange on May 16, settling against value assessments for the two shipping and industrial fuels by oil pricing agency Platts.
Investors Bet on Lower, Longer Oil Price
US crude forwards for Dec 2024 delivery fall below $60; spot crude prices fall back below $40 per barrel. Investors are betting on the oil price staying lower for even longer after OPEC's decision to ditch a formal production ceiling, pushing U.S. crude futures for delivery nearly 10 years away below $60 a barrel. This could possibly harm the ability of U.S. shale producers, among the casualties of OPEC's strategy of pumping hard to retain market share, to lock in profitable prices for future deliveries. U.S.
Derivitive Markets: Get used to cheap oil
Oil prices will stay low for years to come, derivatives markets say, keeping a lid on inflation and helping boost global growth. Oil has more than halved in value over the last year, thanks to huge oversupply, and many oil companies, particularly in the United States, say they may soon have to rein in production, tightening supply, unless the market recovers. That has led many analysts to predict that oil - on average around 5 percent of companies' costs - will see price rises later this year or in 2016, pushing up inflation.
Record Trading in Singapore's Bunkers Market
Over $750 million worth of fuel oil traded 1st week of June. Trading frenzy leads to record price swing. Major commodity houses are betting against each other on the direction of fuel oil in Singapore, the world's largest market for shipping fuel, in a clash that has led to a record price swing and is set to smash monthly trading levels. More than $750 million of physical cargoes have been traded in the first week of June during an end-of-day pricing window…
Asia's Fuel Oil Market Set for Record June Volume
Asia's fuel oil market is set to see a record volume of physical trades in June based on open interest in derivatives for the oil product, with backers of opposing bets expected to drive up activity in what is usually a high-demand period. Fuel oil trades of the 380-cst grade for June could easily top 3 million tonnes for deals done on the price assessment process run by pricing agency Platts, traders said. The volumes could nearly double the 1.75 million tonnes of 380-cst traded on the Platts Market-On-Close (MOC) process for May…
Volatility Draws Billions into Oil Funds
Assets of top oil funds quadruple to $5.4 bln since July; contango structure trims gains through roll costs. Billions of dollars are pouring into oil exchange-traded funds as investors, many of them small savers more familiar with stocks than commodities, risk big losses and focus on the chance of huge rewards. Five of the biggest oil ETFs have seen their assets more than quadruple since July to $5.4 billion as the oil market has had a roller-coaster ride, collapsing by 60 percent then rallying by almost a third.
Yemen Restoring Fuel Subsidy in Face of Protests
Yemen will partially restore a fuel subsidy from Thursday in an attempt to calm anti-government protests in the capital that have threatened to destabilize the impoverished Arab state, according to the cabinet. The plan to ease petrol prices by about 30 percent has however failed to mollify the Shi'ite Houthi rebel group, which also rejected a proposal - still on the table - by president Abed Rabbu Mansour Hadi on Wednesday to form a unity government.
New Director-General Appointed at Gazprom Export
Gazprom informs that due to a considerable increase in the day-to-day business and its geographical expansion, as well as product diversification within the Company’s international activities, Elena Burmistrova has been appointed Director-General of the Russian energy major's Gazprom Export subsidiary. Gazprom explains that Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee will supervise the international business sector as well as social development and sports programs.
Serbia's Oil Firm NIS Raises 2013 Dividend 5.8%
Serbian oil company NIS, majority owned by Gazprom Neft, will pay an annual dividend of 80.22 Serbian dinars ($0.94) per share, up 5.8 percent from a year before, its shareholder assembly decided on Monday. In February, NIS reported a 2.5 percent rise in 2013 net profit to 48.8 billion dinars, citing the stability of the dinar currency and higher consumption of oil derivatives that offset low margins. The company said the shareholders' assembly earmarked a quarter of its 2013 profit, unchanged from a year ago, for dividend payment.
Tullett Parings Jobs, Buying Oil Broker
Firm to buy oil broker PVM Oil Associates for up to $160 mln. Four-month revenue down 12 pct to 248 mln stg. Will cut jobs in drive to save another 20 mln stg a year. British interdealer broker Tullett Prebon is cutting more jobs and buying oil broker PVM in its latest attempt to offset a drop in trading since the financial crisis. Interdealer brokers, whose staff match buyers and sellers of currencies, bonds and other tradable instruments, have been hit hard in recent years…
