Oil posted a weekly loss amid concerns over a slowing global economy and abundant crude supplies.
Futures in New York fell 1.7 percent this week. China reported the slowest pace of economic growth since the early 1990s for last quarter, while US government data a day earlier showed US crude inventories expanding.
“The oil market continue to be incredibly focused on demand and we continue to see indications of ‘lukewarm’ oil at best,” said Leo Mariani, energy analyst at Keybanc Capital Markets Inc in Dallas. “We’ve seen a lot of business investment freeze up and that has impacted oil investments.”
US crude inventories rose by 9.3 million barrels in the week through Oct. 11, according to data from the US Energy Information Administration, surpassing analyst estimates of a 3 million barrel increase.
“The reality is that crude markets are still struggling with prospect of substantial surplus in next year, which is expected, but is very much in line with what growth data is highlighting,” said Daniel Ghali, commodity strategist at TD Bank in Toronto.
“There’s starting to be a worry out there on how much OPEC can do to offset it,” Ghali said.
West Texas Intermediate (WTI) for November delivery fell US$0.15 to settle at US$53.78 a barrel on the New York Mercantile Exchange, down 1.7 percent for the week.
Brent crude for December settlement lost US$0.49 to end the session at US$59.42 a barrel on the London-based ICE Futures Europe. The global benchmark fell 1.8 percent this week and was at a premium of US$5.55 to WTI for the same month.
The US benchmark oil price has been stuck below US$55 a barrel since the start of the month.
China’s GDP trailed estimates and added to a deteriorating global demand outlook for crude.
With a drop-off in exports to the US expected to continue due to the trade spat, the Chinese economy is likely to keep struggling as deflationary pressures hit company profits.
“The demand outlook is a question mark since the overnight data out of China wasn’t great,” John Kilduff, partner at hedge fund Again Capital LLC in New York, said in a telephone interview. “The slowness in GDP didn’t help things and the market is still battling that.”
“The perception of falling demand is driving prices lower,” said Bob Iaccino, market strategist at Chicago-based Path Trading Partners. “No one thinks that demand is going to get higher.”
Short-selling of WTI crude this week rose to 114,709 futures and options, up from 106,578 the week prior and just 39,948 in the one that ended on Sept. 17, according to US Commodity Futures Trading Commission data.
Long bets edged lower by 0.1 percent, to 201,239 contracts. Money managers’ net-long position, or the difference between the two, shrank 8.8 percent.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion