OIL PRICES RIDE THE GLOBAL ECONOMY’S RISING TIDE
Crude oil prices have climbed to their highest level in more than two years, helped by an uptick in global economic growth that has caused stronger demand, Alison Sider reports.
Economies across the globe are expanding, boosting manufacturing and trade. “It’s not just faster growth, it’s faster growth in areas that happen to be oil consuming,” said Jason Thomas, director of research at the Carlyle Group.
Oil prices have risen by more than 15% since the beginning of September. Stronger global growth has also pushed up the U.S. stock market to record highs this year.
BRENT CRUDE HOLDS ABOVE $60 AMID GLOBAL RISKS
Oil prices advanced Friday morning, as Brent crude marked a week of trading above the symbolic $60-a-barrel level, boosted by geopolitical uncertainties.
Brent, the global benchmark, was up 0.54%, at $60.95 a barrel on London’s Intercontinental Exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.61%, at $54.87 a barrel.
Brent last Friday climbed above $60 for the first time in over two years. On Thursday, WTI, the U.S. standard, hit its highest level since July 2015.
“Geopolitical risk is back in the picture in a very clear way,” said Richard Mallinson, an analyst at consultancy Energy Aspects, citing ongoing conflict in northern Iraq and Venezuelan financial instability.
HOUSE PLAN WOULD SCRAP TAX CREDIT FOR ELECTRIC VEHICLES
The Republican tax plan being advanced in the House of Representatives would eliminate a tax credit for electric vehicles, report Mike Spector and John D. McKinnon.
The proposal would halt thousands of dollars of discounts for buyers of electric vehicles, while potentially further weakening sales of battery-powered cars in the U.S. The move would also come just as car companies across the globe have been beefing up investments in electric vehicles.
“The federal income-tax credit, as high as $7,500, has served as a lure to consumers to buy electric of plug-in hybrid vehicles that are more expensive than their gasoline-powered counterparts,” Messrs. Spector and McKinnon write. Electric vehicles already faced uncertain demand amid the low gasoline price environment in the U.S.
RUSSIA, IRAN BOOST ENERGY TIES
Russian President Vladimir Putin met with Iranian leaders in Tehran earlier this week, as the two sides agreed to bolster their energy partnerships and cooperate to end the civil war in Syria, Aresu Eqbali and Asa Fitch report.
Russia and Iran signed six preliminary agreements on energy cooperation, touching on training, research and oil-field development, according to Amir Hossein Zamaninia, Iran’s deputy oil minister. The deals reportedly involved Russian oil giants PAO Rosneft and PAO Gazprom.