|Day's range||55.16 - 55.42|
The time that OPEC rhetoric caused huge volatility in oil markets is long gone and in today’s well supplied market, it’s economic powerhouses like China that influence the price of oil
Asian shares lumbered lower on Wednesday as the Sino-U.S. trade talks produced nothing but a stream of conflicting messages, while concerns about a glut of supply saw oil prices suffer their biggest spill in seven weeks. Figures from the American Petroleum Institute out late Tuesday showed a far larger rise in crude stocks than expected. Action in share markets was subdued with MSCI's broadest index of Asia-Pacific shares outside Japan off 0.25%.
The silver markets rallied a bit during the trading session on Tuesday, breaking above the highs of the last couple of days in a sign of strength. However, we haven’t exactly exploded to the upside so there still are a lot of questions when it comes to silver.
(Bloomberg) -- About 3,200 workers at Canadian National Railway Co. went on strike at midnight Tuesday, threatening to crimp shipments of oil, potash and grain across the country.Conductors and yard operators at Canada’s largest railway walked off the job after failing to reach an agreement with the company over issues including working conditions and drug benefits, the Teamsters Canada Rail Conference union said.“Unfortunately, we were unable to reach a deal with CN,” the union said in a statement. Workers have been without a contract since July and served a strike notice on Saturday.CN Rail is one of two main rail networks that Canada uses to ship consumer goods and exports of canola, wheat, potash and other resources from the prairies to seaports. The company carries C$250 billion ($189 billion) worth of goods annually and has increasingly been moving into shipping oil amid a bottleneck of pipelines from Alberta’s oil sands.Petroleum and chemicals account for 20% of CN Rail’s revenue, followed by grain and fertilizer with 16%. The strike involves only the company’s Canadian workers and doesn’t include the U.S., where CN Rail operates a rail line from Chicago to New Orleans.About half of Western Canada’s grain elevators are on a CN line, according to the Western Grain Elevator Association while the Mining Association of Canada said its industry is the single largest shipping group by volume on the country’s Class 1 railways. The railway shipped 180,000 barrels a day of oil in September, according to its earnings call.Autumn Harvest“There have been fairly heavy orders of late,” Bruce McFadden, director of research and analysis at grain monitor Quorum Corp., said in a phone interview. “It was a slow start to the season as the harvest was much delayed by weather. But even though it continued to be a difficult harvest there has been a substantial portion of the grain is available now.”CN Rail had been expected to supply 5,650 hopper cars per week for shipping of crops like canola and wheat to the Canada’s ports on the west coast though November, according to CN’s operating plan. In December grain shipping slows down with the weekly car allotment expected to fall to 4,150 cars until March.Canadian Labor Minister Patty Hajdu urged the parties to continue negotiations. “While we are concerned about the impact of a work stoppage on Canadians, we remain hopeful they will reach an agreement,” she said in a statement.Arbitration RejectedA representative for the Montreal-based company declined to comment on the strike. On Saturday, it said it continued to negotiate in good faith and had offered to go to binding arbitration, which the union rejected.Managers may step in to operate trains, blunting the impact of any walkout. Allison Landry, an analyst with Credit Suisse Group AG, said a walkout may crimp CN’s cargo volume, but the labor action probably wouldn’t last long and the impact on the company’s earnings wouldn’t be meaningful.“Historically, rail strikes have lasted a few days, and the Canadian government has been quick to step in and implement back-to-work legislation given the significant threat to the economy,” Landry said in a note to clients.Still, the government may have less leverage to push for a resolution over the next couple of weeks because parliament isn’t scheduled to convene until Dec. 5. That could delay the adoption of back-to-work legislation until then.The Teamsters argue that workers are being forced to operate trains alone from outside the locomotive while hanging on to moving trains with one hand and working a remote-control device in the other, creating a safety hazard. The union is also balking at a lifetime cap on prescription drug coverage and said the company is making it more difficult to take time off and work longer hours.Canadian National fell 1.1% to C$122.46 at 11:28 a.m. in Toronto. It’s gained about 22% this year, compared with the 24% gain of an index of Canadian industrial stocks.(Updates with potential impact on grains, oil, mining from 6th paragraph)\--With assistance from Theophilos Argitis.To contact the reporters on this story: Thomas Black in Dallas at firstname.lastname@example.org;Ashley Robinson in Winnipeg (Non BLP Loc) at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, Jacqueline ThorpeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Oil fell more than $1 a barrel on Tuesday on concerns about excess global crude supply and limited progress toward resolving the U.S.-China trade dispute that has clouded the outlook for oil demand. Brent crude futures fell $1.53, or 2.5%, to settle at $60.91 a barrel. U.S. West Texas Intermediate (WTI) crude futures lost $1.84, or 3.2%, to settle at $55.21 a barrel.
China has clearly become the preferred partner to help develop Iran’s Namavaran field which could contain up to 53 billion barrels of crude oil
Anti-government protests in Iraq have spread from Baghdad to Basra as protesters block roads leading to five oil fields and the key export terminal in the country
The stock markets really have gotten a bit ahead of themselves lately, and the impulsive move on Friday was just the latest sign of this. This isn’t to say that we should be sellers, rather that we should be hoping for some type of pullback as it offers value.
Gold markets initially pulled back during the trading session on Monday, but then turned around to show signs of strength again. By doing so, the market has confirmed that the $1450 level is in fact going to be support.
Investors need to pay close attention to Whiting Petroleum (WLL) stock based on the movements in the options market lately.
Today’s reaction to the news is understandable since prices rose last week when the headlines read that the trade deal negotiations had hit a snag. Although the selling pressure is strong early Monday, there are still skeptics out there who cite the lack of details from the U.S. and China officials as reasons to remain cautious about the remarks.
The current U.S.-China trade deal headlines could hold the crude oil market hostage for a few days until there is fresh news. The recent price action indicates traders are being reactive to the news, not proactive. Furthermore, given the lack of concrete details from Kudlow, Ross and the Chinese, crude traders are likely to be tentative. Some analysts are also being a little skeptical.
NEW DELHI/MELBOURNE (Reuters) - India is looking to lower advance payments and offer larger mining blocks to attract global companies to invest in its coal sector for the first time, but industry sources say the measures may not be enough to draw in big international miners. India plans to float global tenders for the first time for coal mining blocks before end-2019, sources familiar with the matter told Reuters in August, a move that could end Coal India Ltd's near-monopoly on the fuel. The auctions, to be aimed at paring back the nation's coal imports, are intended to attract global miners such as Glencore PLC, BHP Group, Anglo American PLC and Peabody Energy Corp.
SINGAPORE/LONDON (Reuters) - Oil prices edged lower on Monday, giving up some of last week's gains, amid uncertainty over a trade deal between the United States and China. Concerns about plentiful crude supplies in 2020 also weighed on the market, which expects OPEC to extend production cuts in early December to help avoid a new global glut. Brent crude futures fell 1% or by 62 cents to trade at $62.68 per barrel at 1345 GMT.
Given that traders ignored another build in U.S. inventories and reports predicting lower demand and higher supply, the U.S.-China trade deal is probably all crude oil traders care about at this time.
Venezuela’s oil exports rebounded in October, surprising friend and foe by using some proven shipping tactics to ship its oil to customers in Asia
The confirmation of the closing price reversal bottom is potentially bullish. Typically, this chart pattern leads to a 2 to 3 day counter-trend rally. Its first upside target is usually 50% to 61.8% of the last leg down. This makes 1.1083 to 1.1104, our first objective.
Both OPEC and the IEA released key reports this week, both of which pointed to some major worries for the oil cartel, yet oil markets seem not to have noticed
The S&P; 500 rallied it during the week, but it should be noted that most of that rally was during the day on Friday. At this point, the market looks very likely to continue grinding it out to the upside, but it is getting a bit stretched.