Oil up in choppy trade as OPEC makes last-ditch bid to save deal | Reuters
By Jessica Resnick-Ault | NEW YORK NEW YORK Oil prices gained more than 2 percent on Monday in volatile trading after falling as much as 2 percent, recouping losses as the market reacted to the shaky prospect of major producers being able to agree output cuts at a meeting on Wednesday. U.S. West Texas Intermediate crude futures CLc1 rose 99 cents to $47.05 a barrel, a 2.2 percent gain by 10:44 a.m
By Jessica Resnick-Ault
| NEW YORK
NEW YORK Oil prices gained more than 2 percent on Monday in volatile trading after falling as much as 2 percent, recouping losses as the market reacted to the shaky prospect of major producers being able to agree output cuts at a meeting on Wednesday. U.S. West Texas Intermediate crude futures CLc1 rose 99 cents to $47.05 a barrel, a 2.2 percent gain by 10:44 a.m. ET. Brent crude LCOc1 rose 98 cents to $48.22 a barrel, a 2.1 percent gain.Trading turned choppy after prices tumbled more than 3 percent on Friday as doubts grew over whether the Organization of the Petroleum Exporting Countries would reach agreement to help curb a global supply overhang that has more than halved prices since 2014.Market watchers expected prices to remain volatile until OPEC's Wednesday meeting offers the market a definitive answer as to whether OPEC and non-OPEC producers can agree cuts. "Through Wednesday, trade will be very headline-driven," said Tony Headrick of CHS Hedging. "Comments coming out of pre-meetings, particularly from Iraq this morning, are really a driver today."
On Sunday, Saudi Arabian Energy Minister Khalid al-Falih said the oil market would balance itself in 2017 even if producers did not intervene, and that keeping output at current levels could therefore be justified.The statement stoked simmering disagreement between OPEC and non-OPEC crude exporters such as Russia over who should cut production by how much. By Monday, OPEC was scrambling to rescue the deal, with analysts warning of a sharp price correction if they fail, and prices spiked as Iraq's oil minister said the country would cooperate with the group to reach an agreement "acceptable to all".
A meeting scheduled for Monday between OPEC and non-OPEC producers was called off after Saudi Arabia declined to attend, while concerns over the feasibility of a deal pushed the crude oil volatility index .OVX close to a nine-month high.Others warned that even if some form of an output restriction is announced after producers meet in Vienna on Wednesday, the details matter greatly.
"Do not take an announcement of a headline cut of 1 million barrels per day (bpd) at face value. It could still imply an OPEC production level considerably in excess of 33 million bpd, depending on developments in Libya and Nigeria and the speed and rigor of compliance," David Hufton, managing director of brokerage PVM Oil Associates Ltd said in a note. Even if a cut is agreed, oversupply may not end soon.The U.S. oil rig count rose by three last week, and Goldman Sachs said that "since its trough on May 27, 2016, producers have added 158 oil rigs (+50 percent) in the U.S.". (Additional reporting by Libby George in London, Henning Gloystein in Singapore and Yuka Obayashi in Tokyo; Editing by Marguerita Choy and Jason Neely)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Ju-min Park | SEOUL SEOUL The woman at the centre of a political scandal that has cast the South Korean presidency into crisis was detained late on Monday, a prosecution official said, hours after she had arrived at the office of local prosecutors to answer questions.Prosecutors are investigating allegations that Choi Soon-sil used her friendship with President Park Geun-hye to influence state affairs by gaining access to classified documents and benefited personally through non-profit foundations, another prosecution official said earlier. Park is in the fourth year of a five-year term and the crisis threatens to complicate policymaking during the lame-duck period that typically sets in towards the end of South Korea's single-term presidency.Worried that Choi may be a flight risk and could destroy evidence, prosecutors placed her under emergency detention without a warrant, South Korea's Yonhap News Agency reported.The prosecution official confirmed that she had been arrested and taken to a Seoul detention facility, declining provide further details.
GoPro Inc (GPRO.O) reported a near 40 percent fall in third-quarter revenue and cut its full-year revenue forecast, hurt by dwindling demand for its body-mounted point-of-view cameras, sending its shares sliding 23 percent after the bell.The company, whose cameras are worn by surfers, skydivers and other action junkies, said revenue fell to $240.6 million in the quarter from $400.3 million a year earlier, declining for the fourth straight quarter.Analysts were expecting revenue of $318.62 million, according to Thomson Reuters I/B/E/S.GoPro also lowered its revenue forecast for the year ending December to $1.25 billion to $1.3 billion from its prior forecast of $1.35 billion to $1.5 billion.
By Elias Biryabarema | KAMPALA KAMPALA Kenya said on Wednesday it would withdraw its troops from the U.N.