1. Crude oil rebounds after steep selloff

Crude oil rebounds after steep selloff

US crude oil prices pushed higher in early Asian trading on Wednesday, partly recovering from a 6 percent drop in the previous session led by concerns over demand and weak equities.

By: | Singapore | Published: February 10, 2016 8:17 AM
Crude oil

US crude oil prices pushed higher in early Asian trading on Wednesday, partly recovering from a 6 percent drop in the previous session led by concerns over demand and weak equities. (Reuters)

US crude oil prices pushed higher in early Asian trading on Wednesday, partly recovering from a 6 percent drop in the previous session led by concerns over demand and weak equities.

FUNDAMENTALS

* U.S. crude for March delivery was 47 cents higher at $28.41 a barrel by 0113 GMT. The contract fell for a fourth-straight session on Tuesday to settle $1.75 lower.

* The front-month Brent contract was 50 cents higher at $30.82 a barrel, after it had closed $2.56, or 7.8 percent, down on Tuesday.

* The American Petroleum Institute (API), an industry group, reported a build of 2.4 million barrels in U.S. crude stockpiles for last week.

* That was lower than the 3.6 million-barrel build predicted by analysts surveyed by Reuters. The EIA issues official stockpile numbers on Wednesday.

* The U.S. Energy Information Administration (EIA) lowered its 2016 oil demand growth forecast to 110,000 barrels per day (bpd) from a growth of 160,000 bpd previously.

* Meanwhile, the International Energy Agency (IEA) predicted the world will store unwanted oil for most of 2016 as declines in U.S. output take time and that OPEC is unlikely to cut a deal with other producers to reduce ballooning output.

* Seeking additional protection against wild swings in prices, oil traders have scrambled to scoop up options, sending a key index to its highest level since the worst of the global economic crisis in 2008, data showed.

* Iranian Oil Minister Bijan Zangeneh said on Tuesday that Tehran is ready to negotiate with Saudi Arabia over the current conditions in the global oil markets, Iran’s Press TV reported.

MARKETS NEWS

* Asian stocks dipped early on Wednesday amid smouldering banking sector concerns, while the safe-haven yen stood atop large gains made overnight.

* MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.2 percent. Australian stocks fell 1 percent. Japan’s Nikkei lost 0.6 percent after sinking 5.4 percent on Tuesday.

Tags: Crude Oil
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