|Day's range||50.88 - 52.41|
After several consecutive days of gains, oil prices slumped by more than 2 percent early on Tuesday, as the coronavirus continues to weigh on sentiment
* The agreement is a follow up to their plan last year to swap crude, Pertamina said. Pertamina will swap crude produced in its Malaysian fields of Kikeh, Kimanis and Kidurong with crude from Petronas' Indonesian fields of Jabung and Ketapang. * The deal is aimed at cutting logistical costs for each of the companies by transporting their crude oil to refineries closer to the fields.
The minutes also showed RBA policymakers expect the coronavirus outbreak to “subtract from growth in exports over the first half of 2020.”
Oil prices fell almost 1% on Tuesday, pressured by concerns over the impact on crude demand from the coronavirus outbreak in China and a lack of further action by OPEC and its allies to support the market. U.S. West Texas Intermediate (WTI) crude futures fell 39 cents, or 0.8%, to $51.66 a barrel. Forecasters including the International Energy Agency (IEA) have cut 2020 oil demand estimates because of the virus.
GBP/USD briefly dipped below the 1.3000 handle but is seen catching a firm bid in early European trading. The pair is on track to post a bullish reversal candle on a 4-hour chart which signals further upside potential.
(Bloomberg Opinion) -- A new report from the International Monetary Fund warns that, by 2034, declining oil demand could gnaw away the $2 trillion in financial wealth amassed by the members of the Gulf Cooperation Council. Unless they act quickly to reform their hydrocarbon-dependent economies, these countries, which collectively account for a fifth of the world’s crude production, will become net debtors.Inevitably, the report has led to predictions that the evaporation of Arab oil wealth will bode ill for economic development and political stability in an already troubled region. Beyond the GCC, low oil prices would hamper the progress of populous, but still under-developed, oil-rich Arab countries—Iraq and Algeria—that must reorganize their economies and societies toward productive sectors without the cushion of wealth salted away during the boom years.But declining oil prices and the dwindling of cash reserves are not necessarily bad news for the political economy of the Arab region as a whole.To start with, the overwhelming majority of the Arab people do not live in oil-rich countries. The most populous Arab countries are for the most part oil-poor. Many are net energy importers, with relatively diversified economic structures and external sectors. These include Egypt, Morocco, Tunisia, Jordan, Lebanon and war-torn Syria. For these countries, lower oil prices would lower the costs of their production and improve their balance-of-payments positions.The decline in oil wealth would reinforce the incentives to diversify away from GCC-dependency by countries like Egypt, Jordan and Lebanon, which have long relied on recycled oil rents—through workers’ remittances, aid and credit from the oil-rich member states. Lower oil prices may actually improve the longer-term prospects of redefining the position of the most populous Arab countries in the global division of labor.Countries like Egypt, Morocco, Tunisia and Jordan already possess diversified export structures, with non-oil goods constituting the bulk of what they export. They have also developed strong trade, investment and tourism connections with powerful partners in the European Union and the U.S. For Morocco and Tunisia, lower oil prices would boost their position as energy importers and as exporters of manufactured goods.Conversely, the outlook for Egypt is significantly tougher given its dense ties with the GCC. But, the overall share of oil-related rents in the country’s GDP, including remittances and foreign aid (predominantly from the GCC), has been constantly declining since the 1990s.There is near consensus in the literature on the Arab world that oil wealth has been associated with less democracy and more conflict and repression. This does not mean that all conflict can be traced back to oil wealth, but it has played a central role in deepening and prolonging hostilities. Hydrocarbon wealth since the oil shock of 1973 has been associated with higher intensity of conflict around the Persian Gulf, with ramifications for the wider Arab world. Three Gulf wars and the ongoing tensions between Iran and an alliance of the U.S. and several Arab countries attest to this fact. Beyond the Gulf region, oil rents have often been often used to fuel arms races and civil conflict through the sponsorship of local militias along ethno-sectarian lines. Hence, lower oil prices in the long term may weaken the financial resource-base for fueling conflict in MENA, whether directly or by proxy.Since 2011, oil riches have been used instrumentally to shape the outcomes of post-Arab Spring political processes across the region. Oil-rich governments have supported non-democratic forces, be they Islamist or non-Islamist, Sunni or Shia, creating prolonged and internationalized civil conflicts. In Syria, for instance, Iran threw its weight behind the regime of Bashar al-Assad. Elsewhere, the GCC monarchies used their money power against people-power movements by backing autocrats. It may not be a coincidence that the only success story of a post-Arab Spring transition to democracy is Tunisia, which is not only oil-poor but also too small to draw much attention from oil-rich states.Less access to easy money could curb ongoing conflicts, or at least make them less intense. It’s worth remembering that the end of the Iraq-Iran war in the 1980s was hastened by the oil glut of 1986 and the subsequent decline in revenues for the two belligerents and their regional sponsors.Civil conflicts are more complicated than international ones, and will likely linger even with declining oil rents, as they have done since 2014 in Syria, Libya and Yemen. Still, the availability of fewer resources may hasten the conclusion of these conflicts—or at least limit their scope and intensity.For much of the Arab world, and especially in the counties where hydrocarbon revenues have long represented a curse, the decline in oil wealth described in the IMF report might yet be a blessing in disguise. To contact the author of this story: Amr Adly at email@example.comTo contact the editor responsible for this story: Bobby Ghosh at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Amr Adly is an assistant professor at the American University in Cairo. He is the author of "State Reform and Development in the Middle East."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tehran is making a move to dramatically improve the recovery rate on its key oil sites, trying to close the gap with arch-rival and competitor Saudi Arabia
The sharp decline in demand in China, which by the way, is the world's largest oil importer, is now stranding oil cargoes off the country's coast and across Asia
Commodity trading houses and the trading units of oil majors have hired oil storage in South Korea to keep crude in tanks until Chinese and general Asian demand recovers from the coronavirus
Indonesia's palm oil exports to China have declined due to a drop in demand for the vegetable oil as a result of the coronavirus outbreak, farming ministry officials said. Indonesia has so far exported 84,000 tonnes of palm oil this month, compared with 371,000 tonnes for the full month of February last year, data from the ministry showed on Monday. Last month it exported 483,000 tonnes to China.
LONDON/SINGAPORE (Reuters) - Top oil traders have rented millions of barrels of crude storage in South Korea this month to hold excess supplies, betting on a demand spike after China recovers from the effects of the coronavirus outbreak, trading sources said. Supplies in the region are piling up after refineries in China, the world's largest crude importer, cut output by about 1.5 million barrels per day (bpd) over just two weeks. Trading firms Trafigura, Glencore and Mercuria as well as the trading division of French oil major Total have rented close to 15 million barrels of storage tanks from South Korea's state oil firm Korea National Oil Corp (KNOC), they said.
As Asian refineries are reducing their crude intake, oil suppliers such as Angola, Brazil and Russia are slashing the prices of their most popular blends
KUALA LUMPUR/MUMBAI, Feb 14 (Reuters) - India's halt on Malaysian palm oil imports has disrupted global edible oil trade flows, with Indonesia diverting supplies to feed India, Malaysia rushing to tap markets left behind by Jakarta, and India substituting palm with other oils. India, the top global palm oil buyer, imposed restrictions on imports of refined palm oil last month, a move sources said was retaliation against Malaysia's criticism of New Delhi's actions in Kashmir and a new citizenship law.
The bearish demand forecasts from OPEC and the IEA are likely going to encourage OPEC and its allies, especially Russia, to implement the additional production cuts recommended the week-ending February 7.
The IEA slashed its demand forecast for the first quarter of 2020, predicting that quarterly oil demand growth will turn negative for the first time in a decade
Despite the global pressure cut back on the use of coal and other fossil fuels, there are still a number of opportunities for the industry to grow