Headlines
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Timothy Geithner’s plan eases gold
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Chinese purchasing spree sends cooper above 4000$/t
Brent and Distillates
Crude oil rose towards 55 $/b, continuing its a few days gains, bolstered by expectations that the U.S. Treasury's efforts to stabilise the ailing financial system could speed up a recovery of the U.S. economy.
Algerian oil minister Chakib Khelil said Sunday that the 2.2 mln.b/d OPEC production cut, which came into effect on January 1, had stabilized oil prices and that 60$/b by the end of the year is now possible despite an anticipated 1.1 mln.b/d fall in demand.
However, the IMF has forecast a further weakening of the global economy, which will see negative growth of -6%, a revision from previous -2.2%. This would translate into a fall in average energy demand of 1.1mln.b/d this year and particularly during the second quarter, when demand is seen falling by 1.2 mln.b/d, Khelil said.
OPEC seaborne oil exports, excluding Angola and Ecuador, will fall to the lowest level since September 2003 in the four weeks to April 4, an analyst who tracks future shipments said last week. Exports from the group will average 22.41 mln.b/d, down 770 kb/d from 23.18 mln.b/d in the four weeks to March 7, UK consultancy Oil Movements said in its latest weekly estimate.
China bought nearly a quarter more Saudi crude in February than a year earlier, while slashing Angolan crude by half, as oil refiners scaled back purchases to draw down high inventories, customs data showed on Monday. The big increase in Saudi oil way exceeds market expectations of a rise of under 10% in exports from Saudi Arabia, as Chinese fuel demand slows.
Italian oil Eni was asked by the Iraqi government to present a proposal to develop Iraq's Nassiriya oil field, which has the potential to produce over 500 kb/d. The Nassiriya oil field was exclusively tendered to Eni of Italy, Nippon Oil of Japan and Repsol of Spain in the fourth quarter of 2008 to be developed by the winner on an engineering, procurement and construction basis.
Iraq will also invite international companies to invest more than 2.5 bln.$ in building a 150 kb/d oil refinery in the southern province of Maysan.
U.S. crude oil is likely to average 35 $/b this year and rise to 55 $next year, U.S. bank Morgan Stanley said in a research note last week.
