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Oil prices rise ahead of OPEC + meeting to discuss supply cuts by Reuters

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© Reuters. FILE PHOTOS: Storage tanks at the Petronius Ineos gasoline refinery in La Vera, France, March 29, 2022. REUTERS/Benoit Tessier

By Isabel Qua

SINGAPORE (Reuters) – Oil prices rose slightly in early Asian trade on Tuesday, on expectations that OPEC + may agree to a significant cut in crude production when it meets on Wednesday, but concerns about the global economy capped gains.

Futures rose 43 cents, or 0.5 percent, to $89.29 a barrel by 0108 GMT, after rising more than 4 percent in the previous session.

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Futures rose 22 cents, or 0.3%, to $83.85 a barrel. The benchmark rose more than 5% in the previous session, posting its biggest daily gain since May.

Oil prices rose on Monday on renewed concerns about tight supply. There are expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, will cut production by more than 1 million barrels per day in their first in-person meeting since 2020 on Wednesday.

OPEC sources said voluntary cuts by members could come on top of that, making it the biggest cut since the start of the COVID-19 pandemic.

“Despite everything going on with the war in Ukraine, OPEC+ has never been this strong and will do whatever it takes to make sure prices are supported here,” Edward Moya, a senior analyst at OANDA, said in a note.

OPEC+ boosted production this year after record cuts in 2020 due to demand destruction caused by the COVID-19 pandemic. But in recent months, the organization has failed to meet scheduled increases in production, which it lost in July by 2.9 million barrels per day.

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Goldman Sachs (NYSE:NYSE) said the production cut considered was justified by the sharp drop in oil prices from recent highs, adding that this reinforced its bullish oil view.

Concerns about the global economy may cap an upward trend, said CMC Markets analyst Tina Teng, as investors also look to take profits from the gains in the previous session.

“There are still uncertainties in global markets, such as bond market turmoil, selling off risky assets and the skyrocketing US dollar,” Teng said.

Oil prices have fallen for four consecutive months as the COVID-19 shutdown in China, the largest oil importer, curbed demand while higher interest rates and a stronger US dollar put pressure on global financial markets. Major central banks have embarked on the most aggressive round of interest rate hikes in decades, raising fears of a global economic slowdown.

A preliminary Reuters poll showed on Monday that US crude oil inventories increased by about two million barrels in the week ending September 30.

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.