Oil Halts Decline Near Six-Year Low Before U.S. Stockpile Data

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Oil halted its decline near the lowest close in more than six years before U.S. crude stockpile and production data.

Futures rose as much as 1.6 percent in New York after slipping to the lowest level since February 2009 on Tuesday. Crude inventories probably increased by 1.3 million barrels for an eleventh week of gains through Dec. 4, according to a Bloomberg survey before an Energy Information Administration report Wednesday. The industry-funded American Petroleum Institute was said to report stockpiles dropped by 1.9 million barrels.

West Texas Intermediate for January delivery rose as much as 61 cents to $38.12 a barrel on the New York Mercantile Exchange and was at $37.97 at 7:54 a.m. Hong Kong time. The contract lost 0.4 percent to $37.51 on Tuesday for a third day of declines. The volume of all futures traded was about 56 percent below the 100-day average.

Brent for January settlement decreased 47 cents, or 1.2 percent, to close at $40.26 a barrel on the London-based ICE Futures Europe exchange on Tuesday after dropping below $40 for the first time since February 2009. The European benchmark crude ended the session at a premium of $2.75 to WTI.

Source: Bloomberg

Oil Price Settles Lower for a 3rd Straight Session

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Oil futures settled lower on Tuesday for a third straight session, giving up earlier gains to remain stuck at levels not seen in nearly seven years.

January West Texas Intermediate crude settled at $37.51 a barrel, down 14 cents, or 0.4%, after trading as high as $38.58 and low as $36.64. January Brent crude lost 47 cents, or 1.2%, to $40.26 a barrel.

Both grades logged their lowest settlement prices since February 2009.

Oil prices have fallen sharply since Friday, when the Organization of the Petroleum Exporting Countries decided to keep output high, despite a drop of roughly 60% for both WTI and Brent crudes since the summer of 2014.

Providing some support for dollar-based oil prices was a weaker dollar. In addition, U.S. monthly government data released Monday showed expectations for a decline in total January domestic shale-oil production.

The Energy Information Administration on Tuesday lifted its 2015 crude production estimate to 9.33 million barrels a day from a prior estimate of 9.29 million. It also cut its WTI price forecasts for this year and next.

Weekly petroleum supply data from the EIA will be released on Wednesday and offer an update on total domestic oil production. The American Petroleum Institute will issue its weekly oil-inventory update late Tuesday.

Analysts polled by Platts forecast a weekly decline of 1.2 million barrels in crude inventories. But they also expect increases of 3.2 million barrels for gasoline stockpiles and a rise of 2.5 million barrels for distillate supplies, with refinery utilization seen topping 95% of capacity.

Source: MarketWatch

China Stock-Index Futures Little Changed Before Inflation Data

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Chinese stock-index futures were little changed before inflation data that will signal whether demand is weakening in the world’s second-biggest economy. The offshore yuan strengthened even as the central bank cut the Chinese currency’s reference rate to the weakest level in four years.

The CSI 300 December futures contract added 0.1 percent at 9:20 a.m. local time. Six companies will make their trading debuts on Wednesday, including Anji Foodstuff Co. China’s consumer-price index probably rose 1.4 percent in November, compared with growth of 1.3 percent in October. The producer-price index likely fell 6 percent, extending its streak of negative readings to 45 months. The offshore yuan rose 0.1 percent to 6.4864 per dollar in Hong Kong.

The Shanghai Composite Index dropped 1.9 percent to 3,470.07 on Tuesday after trade data signaled a deepening slowdown in the nation’s economy and sinking crude prices dragged on oil companies.

The CSI 300 Index retreated 1.8 percent. The Hang Seng China Enterprises index fell 1.4 percent, dragged down by insurers, while the Hang Seng Index slipped 1.3 percent. The Bloomberg China-U.S. Index fell 0.2 percent.

Source: Bloomberg

Asian Stocks Head for Two-Month Low Before China Inflation Data

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Asian stocks fell ahead of China inflation data, with the regional benchmark index headed for a two-month low, as the cheapest iron-ore prices on record weighed on commodity producers.

The MSCI Asia Pacific Index fell 0.4 percent to 130.14 as of 9:01 a.m. in Tokyo, poised for the lowest close since Oct. 6. The gauge extended its 2015 drop to 5.6 percent as oil lingered near its lowest level since 2009 and the decline in iron ore compounded concerns about slowing growth in China. Data Wednesday is projected to show a 45th monthly slide in Chinese producer prices after evidence of ongoing weakness in Chinese trade weighed on global shares Tuesday.

Source: Bloomberg

Japan Stocks Fall Second Day as Rout Deepens in Commodity Prices

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Japanese stocks fell for a second day, extending a global equities slump as a rout in commodities intensified. Energy explorers and oil refiners led declines.

The Topix index declined 0.6 percent to 1,560.10 as of 9:01 a.m. in Tokyo, headed for its lowest close in a month. The Nikkei 225 Stock Average dropped 0.6 percent to 19,372.57. Global equities suffered their worst day in almost a month on Tuesday as oil lingered at its lowest level since 2009 while iron-ore prices plumbed new lows.

U.S. crude traded at about $38 a barrel after sliding to as low as $36.64 on Tuesday as OPEC’s decision to effectively abandon a limit on production continued to reverberate through markets.

Source: Bloomberg