Oil Falls as Saudi, Russian Output Freeze Seen Leaving Glut

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Oil dropped on speculation that a pledge by Saudi Arabia and Russia to freeze production at January levels won’t succeed in tackling the global oil surplus.

Crude fell 1.4 percent in New York. The agreement depends on other producers following suit, Qatar’s Energy Minister Mohammed bin Saleh al-Sada said in Doha Tuesday. The pact won’t be meaningful unless Iran and Iraq, which have been raising output, cooperate, Commerzbank AG said. Saudi Arabia’s Ali al-Naimi said the freeze could be followed by other steps to improve the market.

Venezuela has lobbied exporters including Russia, Iran and Saudi Arabia to arrange a meeting between OPEC members and other suppliers in an attempt to reach an agreement to balance the market. Brent crude is still down about 14 percent this year amid the outlook for increased Iranian exports. BP Plc predicts the market will remain “tough and choppy” in the first half as it contends with a surplus of 1 million barrels a day.

West Texas Intermediate oil for March delivery fell 40 cents to close at $29.04 a barrel on the New York Mercantile Exchange. There was no settlement Monday because of the U.S. Presidents Day holiday. Trades were booked Tuesday for settlement purposes. Total volume traded was 80 percent above the 100-day average at 2:48 p.m.

Brent for April settlement slipped $1.21, or 3.6 percent, to $32.18 a barrel on the ICE Futures Europe exchange. The European benchmark oil closed at a $1.21 premium to April WTI.

Source: Bloomberg

Gold Sees Sharpest Single-Session Point Drop in Nearly 12 Months

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Gold prices tumbled on Tuesday as U.S. stocks drew bidders and after a prominent Wall Street firm offered a bearish outlook on the yellow metal. April gold fell $31.20, or 2.5%, to $1,208.20 an ounce.

Renewed appetite for U.S. stocks diminished some of the appeal of the precious metal, which has enjoyed one of its best runs over the past two weeks. Adding to gold's decline was a report from Jeffrey Currie, Goldman Sachs's global head of commodities, who said in his most recent research note that it is time to bet against the traditional haven as investor fears are overdone and don't justify the recent rally.

Gold has gained almost 14% so far this year, compared with a decline in the S&P 500 index of 7.4%. The point loss for gold, based on a most-active contract, was the worst since March 6, 2015, according to Dow Jones data. On a percentage basis, it was the worst one-day fall in about three months.

Source: MarketWatch

U.S. Stocks Climb as Beaten-Down Banks, Retailer Shares Rally

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U.S. stocks rose, with the Standard & Poor’s 500 Index posting the best two-day gain in more than five months, despite weakness in oil prices as beaten-down banks, technology and retailer shares led an advance.

Citigroup Inc. and U.S. Bancorp climbed more than up 2.7 percent. Retailers, one of last week’s bright spots, added to their longest rally in three months with Amazon.com Inc. and Home Depot Inc. rising at least 2.6 percent. ADT Corp. soared 48 percent after agreeing to be acquired by Apollo Global Management LLC for about $6.9 billion. Community Health Systems Inc. plunged 22 percent after reporting an unexpected quarterly loss.

The S&P 500 increased 1.7 percent to 1,895.58 at 4 p.m. in New York, bringing the gauge’s climb since Thursday’s close to 3.6 percent. The Dow Jones Industrial Average climbed 222.57 points, or 1.4 percent, to 16,196.41. The index has risen 536 points in two sessions, after losing more than 750 in the prior five days. The Nasdaq Composite Index added 2.3 percent, the most in two weeks. About 8.6 billion shares traded hands on U.S. exchanges, 6.3 percent above the three-month average.

Source: Bloomberg

Hong Kong Stocks Track Global Market Rebound, Led by Energy Shares (Review)

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Hong Kong shares extended gains on Tuesday, led by energy stocks as sentiment improved on the back of higher oil prices and rebounding European and Chinese equities.

The Hang Seng index rose 1.1 percent, to 19,122.08, while the China Enterprises Index gained 2.1 percent, to 8,028.34 points.

Shares rose across the board. An index tracking energy shares jumped more than 3 percent.

U.S. Stocks Climb as Beaten-Down Banks, Retailer Shares Rally

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U.S. stocks rose for a second day, overcoming weakness in oil prices as beaten-down banks and retailers led an advance.

Citigroup Inc. and U.S. Bancorp climbed more than up 2.7 percent. Retailers, one of last week’s bright spots, added to their longest rally in three months with Amazon.com Inc. and Home Depot Inc. rising at least 1.5 percent. ADT Corp. soared 50 percent after agreeing to be acquired by Apollo Global Management LLC for about $6.9 billion. Community Health Systems plunged 27 percent after reporting an unexpected quarterly loss.

The Standard & Poor’s 500 Index increased 1.3 percent to 1,888.47 at 12:18 p.m. in New York, following its biggest rally in two weeks on Friday. The Dow Jones Industrial Average climbed 164.36 points, or 1 percent, to 16,138.20. The Nasdaq Composite Index added 1.7 percent. Trading in S&P 500 shares was 8 percent below the 30-day average for this time of day.

West Texas Intermediate crude futures fell 1.2 percent, paring an earlier 2.5 percent slide. The world’s two largest crude producers -- Saudi Arabia and Russia -- said they would hold output at January levels. Oil struggled to rally amid speculation that the production freeze would do little to reduce the glut of crude.

Source: Bloomberg