(Bloomberg) -- Oil’s impressive 2021 rally is coming unstuck just days before OPEC+ meets to decide just how much crude it should return to the market.Futures in New York sank below $60 a barrel, dropping for a third day to head for the longest losing run since December. The alliance meets on Thursday to decide on easing supply curbs after prices posted their best ever start to a year before the current skid. Ahead of the gathering, Saudi Arabia has urged members to take a cautious approach even as signs of tightening emerge.The latest decline in prices may help to strengthen the Saudi stance, according to Stephen Innes, chief global market strategist at Axi. “That’s probably something that could sway the OPEC+ increase more back toward the 500,000 barrels per day as opposed to the 1.5 million,” he said.Crude roared higher in the opening two months of 2021, aided by the deep OPEC+ supply cuts, which include unilateral reductions by the Saudis. The roll-out of vaccines and an investor charge into commodities have also underpinned the gains, which pushed prices in New York to the highest close since 2019.Investors are “a little bit unsure whether OPEC will continue with the support they provided over the last few months with the supply cuts,” said Daniel Hynes, a senior commodity strategist at Australia & New Zealand Banking Group Ltd. If there’s a higher-than-expected increase, that could make things difficult in the short term given demand is still showing signs of fragility, he said.The Organization of Petroleum Exporting Countries and its allies must decide how much output is to be restored -- and at what pace -- with current reductions amounting to just over 7 million barrels a day, or 7% of global supply. The grouping is the largest actor in the global oil market, with collective production covering more than 40% of worldwide demand.OPEC+ still has plenty of scope to restore production, according to Goldman Sachs Group Inc., which estimates there’s a “massive” deficit of 2 million barrels per day at present. The pace of draws during the recovery will likely outstrip the group’s ability to ramp up, the bank warned in a March 1 report.Investors will get clues later Tuesday on the market’s dynamics and outlook with Amin Nasser, chief executive officer of Saudi Aramco, and Mike Wirth, his counterpart at Chevron Corp., among the roster of speakers due to address IHS Markit’s annual CERAWeek conference, which is virtual this yearAs OPEC+ weighs it decision, group leaders Saudi Arabia and Russia need to judge the likely response by U.S. shale producers. While most big publicly traded explorers in the U.S. are planning to keep output flat, smaller, private companies are seeking to grow supply after this year’s rally.The runway to the Thursday’s full OPEC+ meeting starts later Tuesday with the group’s Joint Technical Committee gathering. The JTC’s role is to review the market conditions and members’ conformity with supply agreements.Brent’s prompt timespread was 66 cents a barrel in backwardation on Tuesday. While that’s a bullish structure -- with near-dated prices above later-dated ones -- it’s the lowest reading since mid-February.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
When the world economy slammed on the brakes last year, there was a rush to store a wave of unwanted crude and products, but rising prices and optimism about demand is spurring a swift unwinding of storage contracts. The six-month U.S. diesel futures spread reached 4.35 cents per gallon on Feb. 19, its highest since January 2020.
As members of the oil cartel OPEC and its allies meet this week to discuss adjusting output, analysts expect old tensions between oil producer giants to flare up again.
Oil prices slid more than 1% on Tuesday, extending losses that began last week, as expectations that OPEC would agree to raise oil supply in a meeting this week added to pressure and worries over slowing demand in China dampened sentiment. Brent crude dropped 70 cents, or 1.1%, to $62.99 a barrel by 0457 GMT, after losing 1.1% the previous day. U.S. West Texas Intermediate (WTI) crude fell 71 cents, or 1.2%, to $59.93 a barrel, having lost 1.4% on Monday.
From February 8 through February 26, fundamentally strong stocks seemed to underperform stocks with weaker fundamental ratings. The selloff in the stocks with strong fundamentals is presenting a buying opportunity on Advanced Micro Devices.
After a lackluster decade for commodities, a large number of Wall Street analysts is now predicting a broad commodity rally
(Bloomberg) -- Exxon Mobil Corp. appointed climate-minded activist investor Jeff Ubben and former Comcast Corp. executive Michael Angelakis to its board following investor criticism of the oil giant for its environmental record and poor capital allocation over the past decade.The additions bring the number of directors on the board to 13, with seven joining since 2016, Exxon said in a statement. Bloomberg News first reported Ubben was being considered for the role last month. Exxon rose 3.7% for its biggest daily gain in three weeks. The oil explorer has long attracted criticism for its persistent focus on fossil fuels and unwillingness to commit to zero carbon targets but those attacks intensified recently after its financial performance dwindled. Exxon is embroiled in a proxy battle with activist investor Engine No. 1, which has taken the board to task over both its approach to climate change and track record of spending money on projects that yield weak returns.“While ExxonMobil has now conceded the need for board change, what is missing are directors with diverse track records of success in the energy industry who can position the company for success in a changing world,” Engine No. 1 said in a statement. The investor is still moving forward with its proxy contest.D.E Shaw, another Exxon investor that has pushed for changed, welcomed the appointment of the two directors, saying that they would add “significant capital markets and capital allocation experience” while “navigating the transition to a low-carbon future.”The board appointments follow a series of moves by the company to appease shareholders ahead of its annual meeting in May. Exxon announced new emissions targets, increased climate disclosure and cut capital spending by $10 billion a year all the way out to 2025. Last month, the company tapped former Petronas CEO Tan Sri Wan Zulkiflee Wan Ariffin to join the board.Whether those moves will be enough to placate investors remains to be seen. Exxon filed a preliminary proxy today asking shareholders to reject Engine No. 1’s proposals and including several votes covering political contributions, climate reports and appointing an independent chairman. One of the votes led by BNP Paribas Asset Management on climate lobbying was included in the filing after a decision by the U.S. Securities and Exchange Commission left the door open to including it on the agenda.In 2020, the stock lost 41% and the company incurred its first annual loss in at least four decades. Years of elevated spending on new oil and gas operations left it highly exposed to the crude price crash caused by Covid-19. Exxon also recently wrote down $19.3 billion of assets and reduced its reserves by almost a third.“Michael and Jeff’s expertise in capital allocation and strategy development has helped companies navigate complex transitions for the benefit of shareholders and broader stakeholders,” CEO Darren Woods said in a statement. “Their contributions will be valued as Exxon Mobil advances plans to increase shareholder value by responsibly providing needed energy while playing a leadership role in the energy transition.”Ubben founded ValueAct Capital Management two decades ago. He left ValueAct in June to launch Inclusive Capital Partners, which is focused on investing in companies with a social or environmental angle. Ubben resigned from the board of power provider AES Corp., the company said Monday.Angelakis led strategic planning at Comcast and oversaw the company’s “successful transition into media and other technologies,” Exxon said.Click here to see ESG data from Bloomberg Intelligence(Adds Exxon proxy filing in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
President Joe Biden's U.S. trade representative nominee, Katherine Tai, said on Monday she would work to fight a range of "unfair" Chinese trade and economic practices and would seek to treat Chinese censorship as a trade barrier. In written answers to senators' questions following her confirmation hearing last week, Tai said she would seek to use the enforcement consultation process in former President Donald Trump's "Phase 1" trade deal with China to ensure the protection of American intellectual property. "I am open to exploring a wide range of options to address our long-standing problems with China’s unfair trade practices, including bilateral talks," Tai wrote.
(Bloomberg) -- Citigroup Inc. and Exxon Mobil Corp. will have to let shareholders vote on resolutions tied to race and climate change -- an early sign that U.S. regulators are less likely to side with companies on environmental, social and governance issues under President Joe Biden.Citigroup asked the Securities and Exchange Commission to let it exclude a proposal from CtW Investment Group that called for the bank to perform an audit on racial equity. Exxon requested the agency let it block a resolution from BNP Paribas Asset Management that urged the oil giant to report if, and how, its lobbying activities aligned with global efforts to fight global warming.In both cases, the SEC said it didn’t agree that there was a basis to exclude the resolutions from being voted on during the companies’ annual meetings, according to decisions dated Feb. 26 that were posted on the regulator’s website.CtW said Citigroup had a “conflicted history” regarding racial justice, and cited a fine it paid for failing to offer all eligible customers mortgage discounts and credits.Citigroup said in a Monday statement that is is “acutely focused” on addressing racial inequity, especially in terms of the wealth gap. The lender said its committed more than $1 billion to such efforts, including expanding access to credit, investing in Black entrepreneurs and advancing anti-racist practices in the industry.BNP said in its resolution there isn’t enough information available to assess how Exxon ensures that its lobbying activities, directly, and indirectly through trade associations, align with the objectives of the Paris climate accord. BNP said 200 large investors had asked the oil company how it was managing this issue but got no response. In contrast, Royal Dutch Shell Plc, BP Shell, BP Plc and Total SE have published reports showing the positions their trade associations are taking on climate change, BNP said.(Updates with statement in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Alphabet Inc (GOOG), where a total volume of 15,342 contracts has been traded thus far today, a contract volume which is representative of approximately 1.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 98.8% of GOOG's average daily trading volume over the past month, of 1.6 million shares..
Oil futures end lower Monday, as traders eye tensions between the U.S. and Saudi Arabia ahead of a decision this week by the Organization of the Petroleum Exporting Countries and its allies that's expected to see a loosening of production curbs.
(Bloomberg) -- Oil plunged as the dollar pared losses ahead of a key OPEC+ meeting scheduled this week that may return more supply back to a fast-tightening market.Futures in New York declined for a second straight session Monday, falling to the lowest in over a week. The alliance gathers on Thursday and is expected to loosen the taps after prices got off to their best ever start to a year. But it’s unclear how robustly the group will act, with the Saudi Arabian energy minister calling for producers to remain “extremely cautious.”See also: OPEC+ Faces Calls to Cool Oil Market Frenzy With Extra BarrelsThe market continues to face risks in the near term. China’s Unipec was re-offering cargoes of April Angolan crude amid weaker sales. Diesel demand in India was also down versus a year earlier amid record pump prices in the country. Both point to a limit on some of the recent firmness seen within the oil market.“Now that oil’s back at $60, there’s going to be a push to wean off of those cuts,” said Stewart Glickman, energy equity analyst at CFRA Research. “The question is how much are they going to bring back. The biggest risk is if supply presumes we’re back to pre-pandemic demand in 2021 and that turns out not to be the case.”Still, there has been a raft of bullish calls in recent weeks predicting the rally will continue as the producer response trails consumption, while maintenance in North Sea fields is set to further reduce supply. There are also some signs that demand is starting to pick up. U.S. gasoline demand jumped by 1 million barrels a day last week to 8.76 million barrels a day, a level comparable to March 2020 before the pandemic, according to Descartes Labs.“People have become very optimistic about the ability of OPEC+ to manage a return to a balanced market,” said Michael Lynch, president of Strategic Energy & Economic Research. The market continues to “see improved demand down the road and OPEC+ not oversupplying the market as they ramp up again.”The Organization of Petroleum Exporting Countries and its allies must decide how much output gets restored -- and at what pace -- with current reductions amounting to just over 7 million barrels a day, or 7% of global supply. The 23-nation coalition will choose whether to revive a 500,000-barrel tranche in April, and in addition, whether the Saudis confirm an extra 1 million barrels they’ve taken offline will return as scheduled.Citigroup Inc. thinks the coalition will boost output by about 500,000 barrels a day next month, with Saudi Arabia unlikely to continue its voluntary curbs.“A higher oil-price environment, an increasingly promising demand picture by summer, and the recovering but still growing U.S. oil production outlook for 2021 should give OPEC+ the confidence to slightly increase supply,” said Louise Dickson, an analyst at consultant Rystad Energy AS.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Crude exports from Louisiana’s offshore supertanker port tumbled to zero as Asian buyers limited purchases to manage high inventories that threaten to overwhelm storage facilities.The lack of shipments in February from the Louisiana Offshore Oil Port -- for the first time in nearly two years -- is a stark contrast from January when the facility sent out a record of nearly 15 million barrels of domestic crude to buyers in China, South Korea and India, data compiled by Bloomberg show.“Demand from Asia, and more specifically China, for U.S. crude has slowed because of high inventories in that region after recent heavy buying,” said Yuntao Liu, a London-based analyst at Energy Aspects Ltd. Purchases were also likely postponed as U.S. shipments in February would reach Chinese buyers in April, the peak of the country’s refinery maintenance season, he said.China is America’s largest customer for domestic crude. Any slowdown in Chinese appetite for oil may risk plans by U.S. drillers to restore production with crude futures prices trading around $60 a barrel and showing signs of a further recovery. The Covid-19 pandemic has devastated demand and shuttered oil wells across the nation since the start of early last year.“Interest for U.S. oil might return later in March,” said Liu. “Those supplies would arrive in China during May and June when most turnarounds are completed.”East Asia may also be shunning U.S. crude purchases ahead of meetings by the Organization of the Petroleum Exporting Countries and its allies later this week where discussions will focus on potentially unleashing barrels that had been curtailed. Supplies from LOOP are primarily medium-heavy sour crudes produced in the U.S. Gulf of Mexico that compete directly with oil from many OPEC members. A decision to revive supply could mean less interest for loadings at LOOP.“Supplies from the Middle East are the first choice for Asia,” said Liu. “It’s their base load for sour crude.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Oil futures settled lower on Monday, pressured by the possibility that the Organization of the Petroleum Exporting Countries and its allies will decide to boost production levels when they meet later this week. Traders also eyed tensions between the U.S. and Saudi Arabia, after a spokeswoman for the White House reportedly said the U.S. reserves the right to sanction Saudi Crown Prince Mohammed bin Salman after an intelligence report showed he approved an operation to capture or kill U.S.-based journalist Jamal Khashoggi. April West Texas Intermediate crude fell 86 cents, or 1.4%, to settle at $60.64 a barrel.
Prices are oversold
The rebound isn't just for tech anymore.
NEW YORK, NY / ACCESSWIRE / March 1, 2021 / Levi & Korsinsky, LLP announces that class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies. Shareholders interested in serving as lead plaintiff have until the deadlines listed to petition the court.
The dollar rises weighing on gold prices
LOS ANGELES, CA / ACCESSWIRE / March 1, 2021 / The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against Exxon Mobil Corporation ("Exxon" or "the Company") (NYSE:XOM) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U. Securities and Exchange Commission.