Oil Rises Above $44 After UAE’s Asia Cut
LONDON Oil rose above $44 a barrel on Thursday after the United Arab Emirates announced deeper cuts in crude supply to Asia for April in a possible signal that Opec will cut output further at its next meeting in March.
Abu Dhabi National Oil Co (Adnoc), the main oil supplier in the UAE, said it will sell customers less of its flagship Murban crude oil and three other main grades in April than in March.
The move came as a surprise to traders, who had expected the UAE to keep April supply curbs largely unchanged.
US crude for April delivery was up $1.80 at $44.30 a barrel by 1457 GMT, after hitting an intra-day high of $44.39. London Brent crude gained $1.40 to $45.69.
Europe’s leading stock markets jumped on Thursday, driven up by rising banking shares, dealers said, with London’s FTSE 100 index gaining 1.73 per cent to close at 3,915.64 points.
In Paris, the CAC 40 index gained 1.78 per cent to close at 2,744.84 points and Frankfurt’s DAX soared 2.51 per cent to 3,942.62.
In Asian markets, a key Japanese index, the Nikkei of the Tokyo Stock Exchange, lost 0.04 per cent to close at 7,457.93 points.
The Hang Seng, a key index of the Hong Kong Stock Exchange, also shed 0.85 per cent from its last close.
The dollar dipped against the euro as investors fretted once more over the plight of the troubled US banking sector, analysts said.
The euro also gained ground despite news that European consumer and business confidence slumped to a record low in February, they added.
In morning London trade, the European single currency rose to $1.2774 from $1.2721 late on Wednesday.
Against the Japanese currency, the dollar advanced to 97.87 yen from 97.37 yen on Wednesday.
“Investors remain concerned that some of the largest (US) banks face nationalisation in the immediate future,” said UBS analyst Geoffrey Yu.
“The lack of details on the government’s comprehensive plan to resolve outstanding problems in the financial sector is proving to be a serious hindrance to sentiment.”
But the greenback rose against the yen amid renewed hopes of action by Washington to help banks hammered by the credit crunch.
In London trading on Thursday, the euro changed hands at $1.2774 against $1.2721 late on Wednesday, at 124.89 yen (123.89), 0.8945 pounds (0.8955) and 1.4840 Swiss francs (1.4885).
The dollar stood at 97.87 yen (97.37) and 1.1629 Swiss francs (1.1699).
The pound was at 1.4267 dollars (1.4204).
On the London Bullion Market, the price of gold fell to $946.08 an ounce from $978.50 on Wednesday.
Edward Meir, analyst at MF Global in New York, said the market was expecting further cuts in production by the Opec countries.
Abu Dhabi National Oil Co (Adnoc), the main oil supplier in the UAE, said it will sell customers less of its flagship Murban crude oil and three other main grades in April than in March.
The move came as a surprise to traders, who had expected the UAE to keep April supply curbs largely unchanged.
US crude for April delivery was up $1.80 at $44.30 a barrel by 1457 GMT, after hitting an intra-day high of $44.39. London Brent crude gained $1.40 to $45.69.
Europe’s leading stock markets jumped on Thursday, driven up by rising banking shares, dealers said, with London’s FTSE 100 index gaining 1.73 per cent to close at 3,915.64 points.
In Paris, the CAC 40 index gained 1.78 per cent to close at 2,744.84 points and Frankfurt’s DAX soared 2.51 per cent to 3,942.62.
In Asian markets, a key Japanese index, the Nikkei of the Tokyo Stock Exchange, lost 0.04 per cent to close at 7,457.93 points.
The Hang Seng, a key index of the Hong Kong Stock Exchange, also shed 0.85 per cent from its last close.
The dollar dipped against the euro as investors fretted once more over the plight of the troubled US banking sector, analysts said.
The euro also gained ground despite news that European consumer and business confidence slumped to a record low in February, they added.
In morning London trade, the European single currency rose to $1.2774 from $1.2721 late on Wednesday.
Against the Japanese currency, the dollar advanced to 97.87 yen from 97.37 yen on Wednesday.
“Investors remain concerned that some of the largest (US) banks face nationalisation in the immediate future,” said UBS analyst Geoffrey Yu.
“The lack of details on the government’s comprehensive plan to resolve outstanding problems in the financial sector is proving to be a serious hindrance to sentiment.”
But the greenback rose against the yen amid renewed hopes of action by Washington to help banks hammered by the credit crunch.
In London trading on Thursday, the euro changed hands at $1.2774 against $1.2721 late on Wednesday, at 124.89 yen (123.89), 0.8945 pounds (0.8955) and 1.4840 Swiss francs (1.4885).
The dollar stood at 97.87 yen (97.37) and 1.1629 Swiss francs (1.1699).
The pound was at 1.4267 dollars (1.4204).
On the London Bullion Market, the price of gold fell to $946.08 an ounce from $978.50 on Wednesday.
Edward Meir, analyst at MF Global in New York, said the market was expecting further cuts in production by the Opec countries.
source: OMAN TRIBUNE
