11012014Sat

Oil rebounds on China crude processing; OPEC to meet in Vienna

Bloomberg

By Ben Sharples

Oil rose from the lowest level in three weeks in New York after China’s crude processing climbed to a record and industrial output beat estimates. OPEC meets in Vienna this week to discuss its production quota.

Futures advanced as much as 0.6 percent after falling the past four days. China’s refining increased 9.1 percent in November from a year ago to 10.2 million barrels a day and industrial production jumped 10.1 percent, the National Bureau of Statistics in Beijing said yesterday. Oil briefly pared gains after customs data today showed China’s exports rose less than estimated. Saudi Arabia is content with current crude prices, the country’s oil minister said before the Organization of Petroleum Exporting Countries meets on Dec. 12.

“It’s encouraging to see further evidence that the Chinese economy is bottoming out and looks as though it can, at least in the medium term, sustain growth rates in the 7.5 percent to 8.5 percent region,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “The most likely outcome is that OPEC’s production quota will be left at 30 million barrels a day.”

Crude for January delivery rose as much as 52 cents to $86.45 a barrel in electronic trading on the New York Mercantile Exchange and was at $86.27 at 3:48 p.m. Singapore time. The contract dropped 33 cents on Dec. 7 to $85.93, the lowest close since Nov. 15. Prices slid 3.4 percent last week and are down 13 percent this year.

Brent oil for January settlement on the London-based ICE Futures Europe exchange climbed as much as 68 cents, or 0.6 percent, to $107.70 a barrel. The European benchmark crude was at a premium of $21.14 to New York-traded West Texas Intermediate grade. The spread widened on Dec. 7 for the first time in seven days to $21.09.
Uptrend Chart

Oil is rebounding in New York after settling for a second day above technical support along an upward-sloping trend line, according to data compiled by Bloomberg. This line, connecting the lows of June and November, is around $85.60 a barrel today. Buy orders tend to be clustered near chart-support levels.

Retail sales in China, the world’s second-biggest crude consumer, increased 14.9 percent last month from a year ago, the statistics bureau also said yesterday. Economists surveyed by Bloomberg forecast industrial production would gain 9.8 percent and retail sales would climb 14.6 percent.

China’s exports rose 2.9 percent in November, compared with a median estimate of 9 percent, data from the customs administration in Beijing showed today.
OPEC Supply

OPEC will probably maintain its production quota at 30 million barrels a day of oil, according to a Bloomberg News survey of 18 analysts. “Prices are fine and customers are happy,” Saudi Arabia’s Petroleum Minister Ali Al-Naimi said in an interview on Dec. 7.

The kingdom is the largest producer in the 12-member group, which pumps about 40 percent of the world’s crude.

“The Saudis don’t want prices to go up much from here,” Robin Mills, the head of consulting at Dubai-based Manaar Energy Consulting and Project Management, said yesterday. “Some members like Iran may want a cut in production, but the oil price is still healthy so it’s difficult for OPEC members to claim there’s oversupply.”

Hedge-fund managers and other large speculators boosted their bets oil prices will rise, according to the U.S. Commodity Futures Trading Commission. Net-long positions in futures and options combined were up by 13,434, or 12 percent, to 129,530, the regulator said its Commitments of Traders report on Dec. 7.

Search

Act of Cowardice

Iran's ruling tyrants have executed yet another political prisoner in flagrant violation of international law.  READ MORE

The rush to Tehran amidst rise in executions

World leaders should halt these visits and link any deal with Iran to its human rights record.  READ MORE

Arming a dictator

What if President Obama ordered the sale of arms to Syrian dictator to massacre his opponents? READ MORE

Slaughter intensifies under Rouhani

231 executions have occurred since the presidential election in June which brought to power Hassan Rouhani. READ MORE

Silence is not the answer

Iran: Bloody crackdown targeting dissidents aims at terrorizing the people into submission. READ MORE

Iran’s Murder Machine

The wheels of Iran's Murder Machine turn in tandem with its nuclear machine. READ MORE

What now?

The West must drop the dangerous pretence that talking to a regime not interested in listening constitutes the winning strategy. READ MORE

A facelift

This cosmetic facelift should not dupe the West into thinking that there are fresh prospects for a nuclear deal. READ MORE

An Act of Cowardice

The terrorist attack against Iranian exiles at Camp Liberty, Iraq, is another sign of Iranian regime's weakness. READ MORE

Much atalk about nothing

In Istanbul they merely agreed to talk about talking later in May in Baghdad, of all places. READ MORE

An unholy alliance

The brutal state-imposed bloodbath in Syria deserves uncompromising reproach. READ MORE

Iran cries for freedom

The clerical regime in Iran has predictably unleashed another wave of terror against the citizenry since the outburst of the latest string of mass protests beginning on 14 February. READ MORE

A new Iran policy

The latest round of nuclear talks had an all-too-familiar result: more time for Tehran and less time for the international community to prevent a nuclear-armed theocracy. READ MORE

Murder overlooked

What would the rest of us do if a mad gunman was in our midst, systematically murdering our fellow human beings in front of our eyes? The responsible amongst us would not look the other way, because that would serve as a source of encouragement for the murderers to carry on with their heinous acts unchecked. READ MORE

Standing up to Iran's executioners

The Iranian regime's malicious noose has yet again taken an innocent life. Political prisoner Ali Saremi, 63, was hanged in Tehran's infamous Evin prison after a lifetime of peacefully espousing human rights and democracy. READ MORE