Oil prices climbed by more than US$1 a barrel on Friday, one day after China's decision to abandon its currency peg to the US dollar, making oil prices cheaper for China, the world's second-largest consumer of crude.
The renewed terror attacks on London's public transit system led to some nervousness on the markets. But Thursday's attacks were much less serious than the initial assault two weeks ago and analysts said their effects had dissipated by Friday. A new incident on Friday, with police killing a suspect on a London subway train, also did not brake prices.
Light, sweet crude for September delivery rose US$1.52 to settle at US$58.65 per barrel on the New York Mercantile Exchange as bargain hunters stepped in. The contract had dropped US$0.89 on Thursday to close at US$57.13 after the explosions in London raised travel concerns.
In other Nymex trading, heating oil futures rose US$0.013 to US$1.5819 a gallon while gasoline rose US$0.016 to US$1.697 a gallon. On London's International Petroleum Exchange, September Brent crude futures climbed US$1.86 to settle at US$57.58 a barrel.
China's abandoning the currency peg was "a slight net positive" for country's short-term oil demand, since imported crude will be cheaper in yuan terms, Barclays Capital said.
"If we are right, then the flow of diesel and gasoline exports out of China could slow down and crude oil imports pick up," said Kevin Norrish, director of commodity research.
But some analysts suggested that Beijing's currency moves will eventually lead to less domestic oil consumption -- and falling prices.
PRESSURE FROM THE US: Huawei said a decision by the US was ‘arbitrary and pernicious, and threatens to undermine the entire [technology] industry worldwide’ Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has stopped new orders from Huawei Technologies Co (華為) in response to Washington’s move aimed at further limiting chip supplies to the Chinese company, the Nikkei reported yesterday, citing multiple sources. The orders that TSMC took before the new ban and those that were already in production are not affected, and could continue to proceed if those chips could be shipped before the middle of September, the report said. TSMC, the world’s biggest contract chipmaker and a key Huawei supplier, on Thursday last week announced plans to build a US-based plant and on Friday added that
MediaTek Inc (聯發科), which designs chips used in mobile phones, yesterday launched its new 5G Dimensity 820 system-on-chip (SoC), targeting mid-range to high-end smartphones. The company expects the penetration of 5G technology to gain pace quickly this year and not be affected too much by the COVID-19 pandemic. MediaTek said it aims to expand its 5G chip portfolio this year to cover phones of varying prices after it shipped its first 5G SoC, the Dimensity 1000, last quarter. The Dimensity 820, made by Taiwan Semiconductor Manufacturing Co (台積電) on 7-nanometer technology, is designed for mid-range to high-end 5G phones. MediaTek expects to infiltrate the
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
US-CHINA TENSIONS: The company said that it supplies self-designed chips to the Chinese company and, as such, is not affected by the latest US export restrictions Macronix International Co (旺宏電子) said it does not expect its shipments of memory chips to Huawei Technologies Co (華為) to be affected by the latest US export restrictions on the Chinese tech giant. “As long as the company [Huawei] places orders, we will ship [chips], unless the [Taiwanese] government restricts all Taiwanese companies from shipping” to Huawei, Macronix chairman and chief executive officer Miin Wu (吳敏求) said on Monday in Hsinchu. The US Department of Commerce on Friday took a further step to block chip supplies from non-US companies to Huawei by requiring foreign semiconductor makers to get US government permission before