BRENT BREACHES $60 A BARREL
Brent crude held steady above $60 a barrel Monday morning, after breaching the milestone in a record trading session Friday.
Brent, the global benchmark, was up 0.12%, at $60.51 a barrel on London’s Intercontinental Exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.13% at $53.83 a barrel.
“It’s probably as close to as good as it gets,” said Ole Hansen, head of commodity strategy at Denmark’s Saxo Bank. “Overall, there is a renewed and quite strong investor appetite for oil.”
Brent on Friday topped the elusive $60-a-barrel threshold for the first time in over two years amid renewed optimism that the Organization of the Petroleum Exporting Countries will continue to rein in output and rebalance the market, analysts widely said.
EUROPE’S BIGGEST OIL PLAYERS TO REPORT EARNINGS
Europe’s two biggest oil companies, BP PLC and Royal Dutch Shell PLC are set to report third quarter financial results this week, with expectations of healthy profits in the wake of a modest crude-price recovery. BP reports Tuesday morning, while Shell reports on Thursday.
U.S.-based firms Exxon Mobil and Chevron both reported earnings increases Friday of more than 50% year-on-year. France’s Total reported a 40% jump in net profit compared with the year prior, even as its renewables business generated significantly reduced profitability.
Investors will be looking for progress on whether the oil majors are breaking even, which has become a new metric of success in the lower oil price environment.
SAUDI PRINCE BACKS OUTPUT CUT EXTENSION
Saudi Arabian Crown Prince Mohammed bin Salman on Saturday confirmed the Kingdom’s commitment to extending OPEC’s deal to curb oil production through the end of 2018, reports Summer Said.
“The Kingdom affirms its readiness to extend the production cut agreement, which proved its feasibility by rebalancing supply and demand,” Prince Mohammed said in a statement. “The high demand for oil has absorbed the increase in shale oil production…The journey toward restoring balance to markets, led by the Kingdom, is proving successful despite the challenges,” he added.
The Organization of the Petroleum Exporting Countries and some non-OPEC producers like Russia are in the middle of an accord that cuts global oil supply by nearly 2%, through March 2018. The deal, first agreed last year, was meant to rein in a global oil glut and boost prices.
LME TO LAUNCH BATTERY METALS CONTRACTS
The London Metals Exchange said Monday it plans to launch futures contracts for battery metals by the start of next year, in an effort to take advantage of the nascent electric vehicle market, David Hodari reports.
The exchange will be “working with the battery and electric vehicle industries over the coming months to deliver new contracts such as lithium and cobalt sulfate to bring price risk management to this rapidly growing market,” LME Chief Executive Matthew Chamberlain said in a statement.
Electric vehicle demand should start to crystalize after 2020, with the most interest in hybrid-electric vehicles, according to Geordie Wilkes, a research analyst at brokerage Sucden Financial Ltd.