Oil marks longest streak of weekly declines since 2015

Oil prices ended higher on Friday, but suffered a weekly loss for the fifth time in a row—the longest run of weekly declines since 2015.

Some of the world’s largest producers expressed willingness to stick to output cuts providing support for oil for the session. Prices, however, were still stuck in a bear market, defined as a decline from a recent peak of at least 20%, amid strong U.S. production.

TimeCrude Oil – Electronic Aug 2017Jul 16Sep 16Nov 16Jan 17Mar 17May 17

US:CLQ7
$40$45$50$55$60

“Concerns have risen that supply and demand are not balancing as quickly as thought,” said Brian Youngberg, senior energy analyst at Edward Jones.

August West Texas Intermediate crude CLQ7, +0.68%  advanced 27 cents, or 0.6%, to settle at $43.01 a barrel on the New York Mercantile Exchange. Oil reached bear-market territory on Wednesday.

For the week, WTI oil’s August contract ended roughly 4.4% lower. It was down a fifth-straight week—the longest losing streak of its kind since the eight-week fall that ended on Aug. 21, 2015, according to FactSet data tracking the most-active contracts.

Brent crude for August delivery LCOQ7, +0.75%  on London’s ICE Futures exchange added 32 cents, or 0.7%, for the session to $45.54 a barrel. It fell 3.9% for the week.

A monitoring committee made up of OPEC members and producers outside the group on Thursday said compliance to the deal reached 106% in May, the highest since the deal was first clinched late last year.

But “traders are clearly unconvinced by the cuts that are intended to bring inventories down to their five year average, particularly against the backdrop of rising output from the U.S., Libya and Nigeria,” said Craig Erlam, senior market analyst at Oanda.

On Friday, Baker Hughes BHI, -1.01%  reported a rise in the number of U.S. rigs actively drilling for oil. The count, which is a rough proxy for the activity in the industry, marked the 23rd consecutive weekly climb, deepening concerns that U.S. output is offsetting the OPEC cuts.

Oil prices can “fall further, but prices below $50 or $55 are not sustainable over time [as] insufficient global investment will limit new supply,” said Youngberg. “We see prices rising later in the year and into 2018.”

Prices fell earlier this week as data from the Energy Information Administration showed a weekly climb in U.S. crude production. The report, however, also showed that crude stockpiles declined for a second week in a row.

Read: This is the real reason we’re ‘drowning in oil’, says Ed Yardeni

Also on Nymex Friday, natural-gas prices finished higher after settling nearly flat Thursday. The EIA revealed that supplies of the fuel climbed by a larger-than-expected 61 billion cubic feet for the week ended June 16, but the increase was less than the 82 billion-cubic-foot five-year average rise for that week, according to Tim Evans at Citi Futures.

July natural gas NGN17, +1.17%  rose 3.5 cents, or 1.2%, at $2.929 per million British thermal units. Prices lost 3.6% for the week.

July gasoline RBN7, -0.23%  ended nearly flat at $1.434 a gallon, for a weekly loss of 1.4%, while July heating oil HON7, +0.31%  also finished virtually unchanged at $1.372 a gallon, with a decline of 3.9% on the week.

 

Source

Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -

Gold tallies three-session rise, but ends week flat

Gold climbed for a third session in a row Friday, but its rise on the back of declines in the U.S. dollar and recent weakness in assets perceived as risky wasn’t enough to give the metal’s prices a boost for the week.

August gold GCQ7, +0.58% rose $7, or 0.6%, to settle at $1,256.40 an ounce, with futures down a dime from last Friday’s settlement, after posting losses in each of the past two weeks.

July silver SIN7, +0.88% gained 13.8 cents, or 0.8%, to $16.647 an ounce. For the week, silver lost a bit more than a penny.

“Gold is consolidating from the recent drawback, but is still in a correction mode, to be clear,” said Nico Pantelis, head of research at Secular Investor.” We should be nearing the bottom of the current correction in the next week or two, from where a bigger climb should start. We think August could be an ideal month to kick-start this new uptrend in gold, which could last till the end of the fall.”

A softening dollar helped to give precious metals get a lift Friday, with the ICE U.S. Dollar Index DXY, -0.31% a measure of the greenback against a half-dozen currencies, down 0.4%. Slack in the dollar can give commodities priced in the currency a boost, making them cheaper for buyers using weaker currencies.

Read Gold and silver IRAs: approach with caution

Although the Federal Reserve last week lifted benchmark interest rates and communicated its intention to normalize monetary policy and shrink its $4.5 trillion balance sheet, gold has climbed. Higher rates can dull the demand for gold in favor of investments that do offer a yield and vice versa.

Read: Inflation is right around the corner, Yellen insists

However, yields on U.S. government bonds, including the 10-year benchmark Treasury note TMUBMUSD10Y, -0.25% have remained persistently low. That’s a reflection of Wall Street’s doubt the U.S. central bank can lift rates quickly, as questions about sluggish inflation and below-potential consumer spending continue. And mixed data on Friday only added to the cloudy picture serving as the backdrop to Fed decision-making. May new-home sales roared back from a soggy April, while a purchasing managers index fell to a nine-month low in June.

Offering gold another reason to rise Friday, St. Louis Fed President James Bullard said the Fed can afford to stop raising short-term interest rates and wait and see how economic developments play out.

Meanwhile, precious metals have also benefited over the week from haven bids, amid concerns about the impact of falling crude-oil prices CLQ7, +0.56% which have recently weighed on equity benchmarks, the Dow Jones Industrial AverageDJIA, -0.03% and the S&P 500 index SPX, +0.14%

Read: Will falling oil prices help bond investors beat the Fed?

Also on Comex Friday, July copper HGN7, +1.02%  rose 2.5 cents, or 1%, to $2.624 a pound, ending around 2.3% higher on the week, while July platinum PLN7, +0.56% edged up $3.80, or 0.4%, to $929.40 an ounce—up 0.3% for the week. September palladium PAU7, -2.86%  bucked Friday’s trend to end at $856.65 an ounce, down $23.85, or 2.7%, which gave it weekly loss of 1%.

Among the exchange-traded funds, the SPDR Gold Trust GLD, +0.44% was up 0.5%, lifting prices for the week by about 0.1%. The iShares Silver Trust SLV, +0.73%  rose 0.8% in Friday dealings, and the VanEck Vectors Gold Miners GDX, +1.72%  climbed 1.8%.

 

Fuente

Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -

Oil Lingers Below $43 After Entering Bear Market on Glut Worries

Oil closed below $43 a barrel for a second day as brimming supplies work against OPEC-led efforts to reduce a glut.

Crude plunged into a bear market this week amid concerns that rising global supply will outweigh production cuts from the Organization of Petroleum Exporting Countries and its partners including Russia. Kuwait Oil Minister Issam Almarzooq thanked OPEC and non-OPEC producers that are complying with pledged cuts, while asking other countries to make more of an effort “to help the agreement succeed.”

Oil’s small gain Thursday is more due to “the fact that we’ve come off quite a bit and we’re catching our breath here a little bit,” Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London, said by telephone. OPEC’s agreement to extend output cuts through the first quarter of 2018 forces members to comply, he said. “What the market is actually fixated on is signs whether or not this compliance is having an effect in terms of the visible inventory data.”

West Texas Intermediate for August delivery rose 21 cents to settle at $42.74 a barrel on the New York Mercantile Exchange. On Tuesday, futures closed more than 20 percent below their peak settlement for the year, meeting the common definition of a bear market.

For a Gadfly column on what the new Saudi prince means for oil, click here.

Brent for August settlement climbed 40 cents to end the session at $45.22 a barrel on the London-based ICE Futures Europe exchange. The global benchmark closed at its lowest since Nov. 14. on Wednesday, also entering a bear market. It traded at a premium of $2.48 to WTI.

“Part of what the market is still seeking is some further commitment from OPEC to production cuts or other talk around that after some of these big declines,” Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle, which oversees $142 billion of assets, said by telephone. “We’re also likely seeing managed money positions and speculators liquidate, so there’s usually just a little pause afterward.”

OPEC and non-OPEC compliance to its output-reduction deal was 106 percent in May, OPEC said in a statement on its website. At talks in Vienna this week, producers focused on how to deal with rising output from Libya and Nigeria, rather than deepening cuts by other members, according to delegates familiar with the talks. The resilience of U.S. shale was also a conversation topic. The next Joint Ministerial Monitoring Committee meeting will be held in St. Petersburg, Russia on July 24.

Libya is pumping the most oil in four years, an official at the National Oil Corp. said earlier this week, while in Nigeria, a major export terminal restarted after a 15-month halt caused by sabotage.

U.S. oil production rose by 20,000 barrels a day last week to 9.35 million, according to the EIA report. Crude stockpiles slid by 2.45 million barrels and gasoline supplies fell by 578,000 barrels. Drillers in the U.S. have brought oil rigs online for 22 straight weeks.

“The low $40s is something the Saudis have attempted to defend. In the past couple of years, it’s somewhere where we’ve seen production growth and investment in wells start to taper off,” Haworth said. “We’re somewhere close to an area where the fundamentals of U.S. production are likely to shift and that will provide some support to prices eventually.”

Oil-market news:

  • Analysts and traders are bullish on WTI crude futures, a weekly Bloomberg survey shows.
  • Barclays Plc forecasts Brent at $50 a barrel in 4Q and WTI at $48 a barrel, analysts including Michael Cohen write in an emailed report.
  • Iran and fellow OPEC members are in talks about making further cuts in oil production, though the group would have a hard time reaching a consensus, according to the country’s top energy official.

 

Source

Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -

Oil Gets a Respite After Dropping to Bear Market on Glut Worries

Oil prices stabilized after falling into a bear market earlier this week as investors remain focused on brimming supplies that work against OPEC-led efforts to reduce a glut.

Futures climbed 1.3 percent in New York, still trading near Wednesday’s settlement of $42.53 a barrel. A report Wednesday from the Energy Information Administration showed U.S. oil production increased to the highest since August 2015. A committee of OPEC and non-OPEC members meeting in Vienna this week is said to have wrestled with the issues of increasing production in Libya and Nigeria, coupled with soaring U.S. output.

Oil plunged into a bear market this week amid concerns that rising global supply will outweigh production cuts from the Organization of Petroleum Exporting Countries and its partners including Russia. Kuwait Oil Minister Issam Almarzooq thanked OPEC and non-OPEC producers that are complying with pledged cuts, while asking other countries to make more of an effort “to help the agreement succeed.”

Oil’s small gain Thursday is more due to “the fact that we’ve come off quite a bit and we’re catching our breath here a little bit,” Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London, said by telephone. OPEC’s agreement to extend output cuts through the first quarter of 2018 forces members to comply, he said. “What the market is actually fixated on is signs whether or not this compliance is having an effect in terms of the visible inventory data.”

West Texas Intermediate for August delivery rose 54 cents to $43.07 a barrel at 11:57 a.m. on the New York Mercantile Exchange. On Tuesday, futures closed more than 20 percent below their peak settlement for the year, meeting the common definition of a bear market.

For a Gadfly column on what the new Saudi prince means for oil, click here.

Brent for August settlement climbed 69 cents to $45.51 a barrel on the London-based ICE Futures Europe exchange. The global benchmark closed at its lowest since Nov. 14. on Wednesday, also entering a bear market. It traded at a premium of $2.44 to WTI.

FGE Founder and Chairman Fereidun Fesharaki discusses the price, production and inventories of oil.

Bloomberg

“Part of what the market is still seeking is some further commitment from OPEC to production cuts or other talk around that after some of these big declines,” Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle, which oversees $142 billion of assets, said by telephone. “We’re also likely seeing managed money positions and speculators liquidate, so there’s usually just a little pause afterward.”

OPEC and non-OPEC compliance to its output-reduction deal was 106 percent in May, OPEC said in a statement on its website. At talks in Vienna this week, producers focused on how to deal with rising output from Libya and Nigeria, rather than deepening cuts by other members, according to delegates familiar with the talks. The resilience of U.S. shale was also a conversation topic. The next Joint Ministerial Monitoring Committee meeting will be held in St. Petersburg, Russia on July 24.

Libya is pumping the most oil in four years, an official at the National Oil Corp. said earlier this week, while in Nigeria, a major export terminal restarted after a 15-month halt caused by sabotage.

U.S. oil production rose by 20,000 barrels a day last week to 9.35 million, according to the EIA report. Crude stockpiles slid by 2.45 million barrels and gasoline supplies fell by 578,000 barrels. Drillers in the U.S. have brought oil rigs online for 22 straight weeks.

“The low $40s is something the Saudis have attempted to defend. In the past couple of years, it’s somewhere where we’ve seen production growth and investment in wells start to taper off,” Haworth said. “We’re somewhere close to an area where the fundamentals of U.S. production are likely to shift and that will provide some support to prices eventually.”

Oil-market news:

  • Barclays Plc forecasts Brent at $50 a barrel in 4Q and WTI at $48 a barrel, analysts including Michael Cohen write in an emailed report.
  • OPEC shipments are to fall by 300,000 barrels a day to July 8, tanker-tracker Oil Movements said in a weekly report.
  • Iran and fellow OPEC members are in talks about making further cuts in oil production, though the group would have a hard time reaching a consensus, according to the country’s top energy official.
  • OPEC needs to cut a further 700,000 barrels a day to boost oil to $50 a barrel, FGE’s Fereidun Fesharaki said.
  • Energy markets need to brace for more assertive Saudi Arabian foreign policy that could threaten regional stability in the heart of the global oil industry after Mohammed bin Salman’s appointment as crown prince.

Source

Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -

Aviation industry wants to strengthen cybersecurity defenses but disagrees on how

Escalating concerns about cyberthreats are prompting the aviation industry to devise an unlikely new safeguard: real-time warnings to pilots about potential hacking attempts.

Work to develop such systems, which have prompted disagreements between some in the industry, are part of separate efforts by France’s Thales SA, Raytheon Co. RTN, -1.09%   and other companies to expand cyber protections for aircraft. Airbus SE EADSY, -0.38%  and Boeing Co BA, +0.30%   support the pilot-alerting goal, reflecting a desire to try new things as global threats intensify and evolve.

But interviews at the Paris Air Show showed there isn’t an industrywide consensus on the concept, a version of which is under development and could start to be tested on some commercial aircraft by late 2018. Large suppliers such as Honeywell International Inc.HON, +0.04%   and Rockwell Collins Inc. COL, -0.54%  —which provide cockpit equipment for many airliners—are skeptical about the need for such proposed capabilities.

The debate isn’t likely to affect cybersecurity systems on today’s airliners or even those built in the next few years, though it could impact how the digital cores of future models will be protected.

Proponents of alerting see advanced systems on aircraft as being able to identify attempted or successful cyberintrusions, with the data feeding into artificial intelligence features powerful and adaptable enough to automatically respond to the hazard.

 

Source

Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -

Trump dañaría aún más la fabricación de los Estados Unidos si se restringe la importación de acero

Presidente Trump ha pedido al Departamento de Comercio para llevar a cabo una investigación Sección 232 rara vez utilizado para determinar si las importaciones de acero están perjudicando la seguridad nacional estadounidense . Y aunque la ley permite que el estudio que se llevó a cabo durante 270 días, la intención expresada por el Secretario Wilbur Ross es completar el informe a finales de junio. El presidente entonces tendría 90 días para decidir si y cómo “ajustar las importaciones”.

¿Cómo se vería esos ajustes? En una reciente audiencia sobre la investigación, el secretario Ross hizo evidente que las medidas altamente proteccionistas están bajo consideración. Lo que Ross no se refirió es si las restricciones de importación de acero adicional se perjudicaría a la economía de Estados Unidos.

Por desgracia, que sin duda lo haría. Nuestro país puede ser sólo unas semanas de distancia de la acción presidencial que dañaría aún más la competitividad del sector manufacturero amplio.

Cinco puntos son particularmente relevantes:

En primer lugar, no está claro que hay una justificación legítima seguridad nacional para invocar la Sección 232. No hay duda de que gran parte del equipo militar de Estados Unidos requiere de acero. La cuestión clave es la mejor manera de obtener determinados tipos de acero necesario para diversas aplicaciones de seguridad nacional.

precios de Estados Unidos para muchos productos de acero ya son significativamente más altos que los precios mundiales, perjudicando enormemente los fabricantes estadounidenses.

La mayor parte de acero utilizado por los militares proviene de proveedores nacionales, tales como United States Steel Corp. X, -0.12%  , AK Steel Holding Corp. AKS, + 1,78% y Nucor Corp.NUE, + 1,61% o de países con los que Estados Unidos tiene relaciones amistosas. Manteniendo el mercado estadounidense abierto a las importaciones de acero sería asegurar que los militares tendrán acceso tanto a los productos de acero nacionales y extranjeros necesarios para mantener la seguridad nacional. Si el Pentágono desea asegurarse de factores internos de algunos productos, se podría establecer contratos a largo plazo con US-molinos no son necesarios los controles de importación.

En segundo lugar, Sección 232 potencial restricciones deben considerarse en el contexto del mercado de acero usadas en Estados Unidos. Aproximadamente 200 medidas antidumping o derechos compensatorios ya están en su lugar en los productos de acero, fabricación de acero uno de los sectores más protegidos del país. Como resultado, los precios de los Estados Unidos para muchos productos de acero son significativamente más altos que los precios mundiales, perjudicando enormemente los fabricantes estadounidenses de acero que requieren como insumo.

En tercer lugar, las restricciones de importación adicionales harían mucho más daño a los fabricantes que utilizan acero que cualquier beneficio que pudiera corresponder a las fábricas de acero. Esto es simplemente debido a los números en bruto. Fábricas de acero emplean sólo 140.000 trabajadores . Los fabricantes que utilizan el acero como insumo emplean a 6,5 millones, 46 veces más . Molinos de acero representan una rebanada más bien estrecha de la economía general de Estados Unidos: $ 36 mil millones en 2015, lo que equivale sólo el 0,2% del producto interno bruto (PIB). Por el contrario, el valor económico añadido por las empresas que utilizan el acero como insumo fue billones de $ 1,04 – 29 veces más – o el 5,8% del PIB.

Cualquier acción del gobierno para impulsar los precios del acero aún más altos por las importaciones que restringen aún más perjudicará a los fabricantes de acero que consume. Sus costos van a subir, lo que reduce su competitividad frente a empresas de otros países. Portadora, la empresa que en diciembre dijo que no se desplazaría 800 puestos de trabajo de Indianapolis a México, después de todo , no es la única empresa que podría reducir sus costos de acero desplazando la producción en el extranjero.

Leer: Trump también para lanzar la sonda de las importaciones de aluminio

En cuarto lugar, otras naciones probablemente tomarían represalias. Cuando una potencia extranjera actúa de manera arbitraria para restringir sus importaciones, los países exportadores afectados negativamente no se divierten. Desde que Estados Unidos es solamente un exportador menor de acero, la venganza es probable que se centra en los sectores inocentes, la exportación competitiva. Los Estados Unidos es el mayor exportador del mundo de equipos militares, por lo que las empresas se puede dirigir. Los Estados Unidos también es el mayor exportador agrícola del mundo; productos agrícolas y alimentarios serían vulnerables a través del tablero.

En quinto lugar, un país que impone restricciones a la importación siempre reduce su propio bienestar económico. Esto es cierto incluso si otros países no se vengan. Los economistas han comprendido ya que el trabajo de David Ricardo que no es prudente tratar de ser autosuficientes cuando otros son capaces de ofrecer productos a menor costo. restricciones a la importación conducen a un uso ineficiente de los recursos, la reducción de bienestar económico nacional en el proceso. En otras palabras, los consumidores se ven perjudicados más de las industrias protegidas son ayudados.

El proceso de la Sección 232 puede estar destinado a infligir dolor a las naciones extranjeras mediante la reducción de sus exportaciones. No podemos estar seguros de si las restricciones de importación de Estados Unidos harán daño a otros países, pero podemos estar seguros de que las restricciones perjudicarán América. La limitación de las importaciones de acero crea una verdadera amenaza para el crecimiento económico y la prosperidad. Es muy difícil construir una defensa nacional fuerte cuando la economía se está debilitando.

Pero no se debe hacer algo para ayudar a las fábricas de acero y sus trabajadores ya que frente a la competencia de importaciones? El Departamento de Comercio debería pensar seriamente en proponer asistencia para el reajuste económico ampliado. Sería una buena política pública para fomentar esta industria protegida históricamente para reestructurar y adaptarse al libre comercio de acero.

Secretario Ross debe resistir la tentación de utilizar el informe de la Sección 232 para recomendar una mayor protección para el mercado del acero. En cambio, se debe promover que el presidente Trump buscan la eliminación de todas las restricciones a las importaciones de Estados Unidos sobre el acero. Esto sería construir una base firme para una economía de fabricación vibrante y creciente que es esencial para la seguridad nacional de Estados Unidos.

Dan Pearson es un investigador principal en el Instituto Cato, y se desempeñó como presidente de la Comisión de Comercio Internacional de Estados Unidos durante la Administración de George W. Bush.

 

Fuente

Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -

Big Oil Replaces Rigs With Wind Turbines

Big oil is starting to challenge the biggest utilities in the race to erect wind turbines at sea.

Royal Dutch Shell Plc, Statoil ASA and Eni SpA are moving into multi-billion-dollar offshore wind farms in the North Sea and beyond. They’re starting to score victories against leading power suppliers including Dong Energy A/S and Vattenfall AB in competitive auctions for power purchase contracts, which have developed a specialty in anchoring massive turbines on the seabed.

The oil companies have many reasons to move into the industry. They’ve spent decades building oil projects offshore, and that business is winding down in some areas where older fields have drained. Returns from wind farms are predictable and underpinned by government-regulated electricity prices. And fossil fuel executives want to get a piece of the clean-energy business as forecasts emerge that renewables will eat into their market.

“It is certainly an area of interest for us because there are obvious synergies with the traditional oil and gas business,” said Luca Cosentino, the vice president of energy solution at the Italian oil producer Eni, which is working with General Electric Co. on renewables. “As the oil and gas industry we know, we cannot get stuck where we are and wait for someone else to take this leap.”

Even as oil production declined in the North Sea over the last 15 years, economic activity has been buoyed by offshore windmills. The notorious winds that menaced generations of roughnecks working on oil platforms have become a boon for a new era of workers asked to install and maintain turbines anchored deep into the seabed. About $99 billion will be invested in North Sea wind projects from 2000 to 2017, according to Bloomberg New Energy Finance. A decade ago, the industry had projects only a fraction of that size.

While crude still supplies almost a third of the world’s energy, oil executives are starting to adjust to demands for cleaner fuels. Even so, emerging fossil-fuel alternatives including wind and solar power are starting to limit growth in oil demand.

Those technologies and electric cars may displace as much as 13 million barrels of oil a day from global demand by 2040, more than is currently being produced by Saudi Arabia, according to Bloomberg New Energy Finance. 

Shell’s Interest

Shell, whose CEO Ben van Beurden has said oil demand may peak in the second half of the next decade, has set up a business unit to identify the clean technologies where it could be most profitable. The company began more than 180 years ago importing shells from Asia and needs to adapt to ensure it’s still around in another century, according to Sinead Lynch, the company’s chair for U.K. businesses.

Wind farms are especially interesting to Shell because they can power electrolysis reactions that make hydrogen, which the company says may be a major fuel for cars in the coming decades, said Lynch in an interview.

It’s exploring new opportunities across Europe in offshore wind after winning contracts from the Dutch government to build the Borssele III and IV wind farms in December. Shell’s bid marked the second cheapest cost for the technology worldwide, according to Lynch, who said the oil major’s big advantage in renewables may be its expertise in marketing.

“It’s also about marketing energy,” Lynch said. “Once you produce your wind, you need to market the power and we have a phenomenally strong marketing and trading business.”

Statoil’s Costs

Oil majors are also changing the offshore wind industry by driving down costs, Statoil Senior Vice President Stephen Bull wrote in an email.

The Norwegian oil major’s Dudgeon wind farm off England’s east coast will be 40 percent cheaper than a neighboring plant built six years ago, Bull said. It’s also creating floating offshore wind foundations that eliminate the costly step of anchoring windmill masts into the seabed. In addition to the U.K., the company is developing projects in Germany and Norway and won a December auction to build an offshore wind farm in New York.  

Cost cuts for offshore wind are helping the technology start to compete with traditional forms of energy, especially nuclear, according to Bloomberg New Energy Finance. Current projects entering operation are delivering power at about half the price of farms finished in 2012 thanks to larger turbines and more competition. Costs could fall another 26 percent by 2035, according to the London-based researcher.

The entry of oil majors into renewables is part of “a longer term trend,” according to Nick Gardiner, head of offshore wind at U.K. Green Investment Bank, who notes that companies with the scale of Shell and Eni have the clout to finance projects more cheaply than many of their competitors.

“I don’t think they are doing this just for investor-relation purposes,” said Gunnar Groebler, head of wind at Sweden’s Vattenfall AB, one of the top five offshore wind developers who welcomed the added competition. “Given that these projects are billion-euro investments, I just assume that they will have done their assessments very thoroughly.”

 

Source

Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -

Gold remains under pressure as dollar firms

Gold trickled to lows on Thursday

Gold prices traded lower on Thursday, as the dollar steadied, despite a mixed batch of economic data ahead of a key House vote on a healthcare bill to replace and repeal Obamacare.

Gold for April delivery on the Comex division of the New York Mercantile Exchange lost $5.75 or 0.47%, to trade at $1,243.85 a troy ounce.

Gold prices pulled back from a session high of $1,253.15 in early morning trade, as the dollar steadied, after the release of better than expected new home sales data while initial jobless claims rose faster than expected.

The Commerce Department said on Thursday new home sales increased 6.1 % to a seasonally adjusted annual rate of 592,000 units last month compared to expectations of a 0.7% increase to 565,000 units.

Elsewhere, initial jobless claims increased by 15,000 to 258,000 in the week ending March 18 from the previous week’s revised total of 243,000 against analysts’ expectations of a drop by 1,000 to 240,000.

Meanwhile investors continued to monitor events on Capitol Hill, ahead of a key House vote on a healthcare bill to replace and repeal Obamacare.

Silver futures rose 0.02% to $17.582, a troy ounce while copper traded higher at $2.637.

Platinum traded at $961.10 down 0.08% while Natural Gas added 0.63% to trade at $3.031.

 

Source

Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -

Would investors lose their faith in Trump if he can’t pass his health-care plan?

They might think he’d fail with investor-friendly initiatives

Getty Images
The Trumpcare-inspired comedown may be contained if the market sees a failure to pass the American Health Care Act as being an isolated event — and not a referendum on the president’s ability to lead Congress to passing other plans.

For some time, it’s been apparent that it would only be a matter of time before one of two things happened: Either the U.S. stock market would fully reflect the investor-friendly initiatives floated by the Trump administration, or investors would come to realize that some of the policies wouldn’t see the light of day.

As noted in my last column:The market is pretty smart. If it senses some of these initiatives will be shot down or modified substantially by Congress, it may correct accordingly.”

The Trumpcare-inspired comedown may be contained if the market sees a failure to pass the American Health Care Act as being an isolated event — and not a referendum on the president’s ability to lead Congress to passing other plans. A vote in the House of Representatives is planned for Thursday.

By contrast, if Trump is viewed as unable to get his pet policies through Congress, a correction in the market averages and leading stocks would likely transpire. Even if this were to happen, though, the market’s floor would probably be underpinned by historically low interest rates, improving earnings and solid employment growth.

Otherwise, could one indicator hold the key to the market’s direction?

Not likely.

It is dangerous to rest one’s market view on just one indicator. It is more effective to wait for price to confirm the message of one or more indictors.

However, one indicator that is of concern is the ratio of high-beta S&P 500SPX, +0.00%  stocks to that of the index’s defensive stocks. A healthy rally in the averages will show a risk-on mentality and the beta babies outperforming the defensives. The chart below shows this occurring from July to December.

Since December, however, there has been a divergence whereby new highs in the S&P 500 SPX, +0.00%  have not been confirmed by new highs in the ratio of high-to-low beta issues. Despite the highs in the averages, then, there is less of a tolerance for risk than meets the eye.

For speculators in aggressive growth stocks, caution is the watchword here. The main reason is that leading growth shares are no longer offering pattern setups called sideways bases. Some of these are pulling back and forming new bases. These patterns will take time to rebuild.

Zayo Group Holdings ZAYO, -0.35% is one such name that is rebuilding its base. Wall Street expects the computer-network-infrastructure specialist to ramp up earnings from a loss of 31 cents a share in the June 2016 fiscal year to a 37-cent-a-share profit in the June 2017 fiscal year. Earnings are expected to grow another 43% in the June 2018 fiscal year.

Revenue growth has been impressive at between 37% and 40% over the past four quarters, respectively.

As the chart below shows, the stock is forming a four-month consolidation that loosely resembles the shape of a cup. Aggressive speculators might consider monitoring Zayo for a pullback after it advances closer to the top of its bases in the 35 area first.

(As always, a protective stop should be used to mitigate risk, along with a starter position that is half, or less, normal size. This initial position could be added to if the stock proves itself. In most cases, a position should not be entered when price is extended, i.e. more than 5% past the top of its base for breakout buys.)

As noted in my last column:It remains to be seen how much longer the market will trust the administration to deliver the goods on various initiatives, the most important of which is taxes. We will continue to watch the major averages and individual leaders for clues as to any breakdown of this trust.”

While it is unknown whether the breakdown of this trust has already begun, a decided lack of price-chart patterns conducive for medium-term speculation makes the decision to be in a generous cash position an easy one.

An impartial view of market direction and a flexible approach to new market developments are to be valued.

— Kevin Marder

Click here for intraday market comments and stock ideas.

Earnings estimate data provided by Thomson Reuters.

The views contained herein represent those of Marder Investment Advisors Corp. (“MIAC”). At the time of this writing, of the stocks mentioned in this report, Kevin Marder and/or MIAC held no positions, though positions are subject to change at any time and without notice. Neither MIAC nor any of its affiliates will be liable, and we accept no liability whatsoever, for any losses any recipient of this report may suffer as a result of his or her or its use of this report or any of its contents.

 

Source

Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -

Oil prices recover after falling to 4-month lows

© Reuters.  Oil bounces off November lows

Oil prices ticked higher during European morning hours on Thursday, after touching their lowest level since the end of November as the market weighed record-high stockpiles in the U.S. against efforts by major producers to cut output to reduce a global glut.

The U.S. West Texas Intermediate crude May contract tacked on 30 cents, or around 0.6%, to $48.34 a barrel by 5:35AM ET (09:35GMT).

The U.S. benchmark settled lower for the third session in a row on Wednesday after touching its weakest level since November 30 at $47.01 after government data showed U.S. crude supplies rose more than expected last week.

Elsewhere, Brent oil for May delivery on the ICE Futures Exchange in London added 30 cents to $50.94 a barrel. The global benchmark sank to $49.71 in the prior session, its cheapest since November 30.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 5.0 million barrels last week to an all-time high of 533.1 million.

Oil has fallen sharply this month amid concern that the ongoing rebound in U.S. shale production could derail efforts by other major producers to rebalance global oil supply and demand.

OPEC agreed in November last year to curb its output by about 1.2 million barrels per day between January and June. Russia and 10 other non-OPEC producers have agreed to jointly cut by an additional 600,000 barrels per day.

In total, they agreed to reduce output by 1.8 million barrels per day to 32.5 million for the first six months of the year, but so far the move has had little impact on inventory levels.

OPEC’s latest monthly report showed global oil stocks in January rose to 278 million barrels above the five-year average.

OPEC members increasingly favor extending the output curb beyond June to balance the market, sources within the group said, although they added that this would require non-OPEC members such as Russia to also step up their efforts.

Kuwait is scheduled to host a ministerial meeting on March 26 comprising both OPEC and non-OPEC members to review compliance with the output agreement and to discuss whether cuts would be extended beyond June.

Elsewhere on Nymex, gasoline futures for April inched up 0.2 cents, or 0.2%, to $1.603 a gallon, while April heating oil rose 0.3 cents to $1.499 a gallon.

Natural gas futures for April delivery advanced 2.1 cents to $3.032 per million British thermal units, as traders looked ahead to weekly storage data due at 10:30AM ET, which is expected to show a draw of 150 billion cubic feet in the week ended March 17.

 

Source

Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González - Tomás González -