2023-11-15 20:11
WTI in contango for first time since July US crude stocks jump, fuel draws down -EIA US crude output holds at October record of 3.2 mln bpd Russian tankers not targeted in EU sanctions proposal HOUSTON, Nov 15 (Reuters) - Oil prices tumbled more than 1.5% on Wednesday on a bigger-than-expected rise in U.S. crude inventories and record production in the world's biggest producer, along with mounting worries about demand in Asia. Brent futures settled down $1.29, or 1.6%, at $81.18 a barrel. U.S. West Texas Intermediate crude (WTI) fell $1.60, or 2%, at $76.66. WTI's front month contract was also lower than the second month, or in contango, for the first time since July. Prices for oil six months ahead also looked poised to rise above front month contract. U.S. crude stocks rose by 3.6 million barrels last week to 421.9 million barrels, according to the U.S. Energy Information Administration (EIA), far exceeding analysts' expectations in a Reuters poll for a 1.8 million-barrel rise. The weekly government data, which was not published last week due to systems upgrade, also showed U.S. crude production was holding at a record 13.2 million barrels per day that it hit in October. "U.S. supply activity is headwind for the market, and U.S. is a problem for OPEC+," said John Kilduff, partner at Again Capital LLC in New York, adding he does not think Saudi Arabia can cut more output to boost prices. Top oil exporters Saudi Arabia and Russia, part of OPEC+, the Organization of the Petroleum Exporting Countries and allies, said this month they would continue with their additional voluntary oil output cuts until year end. U.S. gasoline stocks showed strong demand with a surprise draw of 1.5 million barrels last week. Diesel inventories fell more than expected at 1.4 million barrels. The International Energy Agency on Tuesday joined OPEC in raising oil demand growth forecasts for this year, despite projections of slower economic growth in many major countries. China's oil refinery throughput eased in October from the previous month's highs as industrial fuel demand weakened and refining margins narrowed. Still, its economic activity perked up in October as industrial output increased at a faster pace and retail sales growth beat expectations. Japan's economy contracted in July-September, snapping two straight quarters of expansion on soft consumption and exports. U.S. retail sales fell in October for the first time in seven months. European Union diplomats said Russian oil tankers are not targeted in the European Commission's proposal for tightening implementation of a price cap on the country's crude oil. Earlier, the Financial Times reported that Denmark will be tasked with inspecting and potentially blocking Russian tankers sailing through its waters under new EU plans as a way of enforcing a $60 per barrel price cap on Moscow's crude. https://www.reuters.com/business/energy/oil-gains-middle-east-tensions-stock-data-focus-2023-11-15/
2023-11-15 20:09
Nov 15 (Reuters) - Bitcoin, the world's largest cryptocurrency, rose more than 5.3% on Wednesday to $37,978, near a one-week high. It has risen about 125% so far this year. While bitcoin remains far from the investment fever pitch it hit in late 2021, the crypto sector has enjoyed a rally in recent weeks as the expected end of central bank rate-hiking cycles draws cash back into high-risk assets. https://www.reuters.com/technology/bitcoin-up-more-than-5-near-one-week-high-2023-11-15/
2023-11-15 19:57
LIMA, Nov 15 (Reuters) - Peru's economy contracted for a fifth consecutive month in September, landing well below forecasts, but the country's economy minister argues the downturn can be reversed with economic growth expected by early next year. The mining-dependent South American economy has stumbled this year due in part to bad weather linked to the El Nino weather phenomenon and social strife. Peru's gross domestic product shrank about 1.3% in September, according to data from statistics agency INEI released on Wednesday, or double the 0.65% contraction forecast in a Reuters poll. Meanwhile, GDP shrunk 0.63% year-on-year over the first nine months of 2023. According to analysts, the third quarter's contraction marks the worst performance in three decades excluding the coronavirus pandemic. Nevertheless, Economy Minister Alex Contreras told radio RPP there were signs of improvement in October and the first half of November. "The situation can be alleviated," he said. "This drop is going to moderate." While a government stimulus package was launched last week, INEI also pointed to adverse socio-environmental conflicts and climate problems. "The country's productive activity was affected by the state of alert over the coastal El Nino phenomenon, which interrupted normal development of economic sectors such as agriculture, manufacturing and construction," INEI said in a statement. The contraction was led by year-on-year declines in agriculture, manufacturing, construction and finance, even as activity related to fishing, mining and energy improved. The data comes after the central bank's chief economist warned last week that the July-to-September period could mark a third straight quarterly contraction. Peru slid into a technical recession earlier this year, following two quarters of negative growth. The chief economist added that an already downwardly revised 0.9% economic growth forecast for this year still faces "downward pressure." Analysts at J.P. Morgan said while they expect the economy to "firm up" in the fourth quarter, the central bank should consider accelerating its easing cycle so benefits are felt by the time El Nino fully hits next year. https://www.reuters.com/world/americas/peru-economy-chief-improvement-possible-despite-months-contraction-2023-11-15/
2023-11-15 19:49
US producer prices softer in October, retail sales slower US dollar up 0.4%, Treasury yields rebound Platinum, palladium set for third daily rise Nov 15 (Reuters) - Gold steadied below one-week highs on Wednesday, weighed by a stronger dollar, but expectations that the U.S. Federal Reserve is done with hiking interest rates put a floor under prices. Spot gold fell 0.1% to $1,960.49 per ounce by 2:20 p.m. ET (1920 GMT), after touching a one-week peak earlier. U.S. gold futures settled 0.1% lower at $1,964.30. Denting bullion's appeal, the dollar index (.DXY) was up 0.4%, while benchmark 10-year U.S. Treasury yields rebounded after a revision of retail sales data showed strong gains in September. Bullion gained nearly 1% in the previous session after data showed that U.S. consumer prices were unchanged in October. U.S. producer prices fell by the most in three-and-a-half years in October, the latest indication of inflation pressures easing. "The results from CPI and PPI are positive and it continues to support gold prices with the expectation that inflation will continue to pull back adding to the expectations that the Fed is done raising interest rates," said David Meger, director of metals trading at High Ridge Futures. The market was certain the U.S. central bank will leave rates unchanged in December, with most traders eyeing rate cuts from May 2024, according to the CME FedWatch tool. While gold is considered an inflation hedge, rising interest rates dull non-yielding bullion's appeal. "With yields back up, gold is lower after the initial spike up. I think the outlook will remain positive for (gold) assets but the moves will be more measured," said Tai Wong, a New York-based independent metals trader. Investors also looked at data that showed U.S. retail sales fell in October, though by less than expected, after months of strong gains, pointing to slowing demand that could further strengthen expectations of a rate-hike pause. Spot silver rose 1.6% to $23.45 per ounce, after touching its highest since Oct. 20 earlier. Platinum was up 1.1% at $895.13 and palladium gained 1.5% to $1,032.45. Both metals were eyeing their third straight session of gains. https://www.reuters.com/markets/commodities/gold-hits-one-week-high-expectations-fed-rate-cuts-2023-11-15/
2023-11-15 19:04
BUENOS AIRES, Nov 15 (Reuters) - Argentina's agricultural core saw much higher than average rainfall during the first half of November and will likely see even more moisture in the coming days in a welcome boost for the sector, the Rosario grains exchange (BCR) said on Wednesday. The rains coincide with the weather phenomena known as El Niño, which for Argentina means higher levels of precipitation over key farmland following a dry Southern Hemisphere winter. Argentina is a major global grains exporter, especially for processed soybeans, corn and wheat. "We're beating the accumulated historical levels for November by a big margin," said Cristian Russo, the BCR's chief forecaster, in the report. The stock exchange noted that since Tuesday the core area's northwestern farmland got 15-40 millimeters (0.6-1.6 inches) of rain, with "significant and more generalized" precipitation expected, which should boost farm production. Not only is Argentina's grains output a key pillar of economic activity in the South American country, but it also represents a much-needed source of U.S. dollars for the cash-strapped central bank needed to finance exports and pay down debt. In a separate weekly report issued Wednesday from the Buenos Aires Grains Exchange (BdeC), over the next week Buenos Aires province will likely see 10-50 millimeters (0.4-2.0 inches) of rain. Other parts of Argentina's fertile Pampas region are seen receiving more moderate moisture of up to 10 millimeters (0.4 inches), according to BdeC. Recent rainfall over the last few weeks have provided a welcome boost to the start of soybean planting for the 2023/2024 harvesting season, while also helping areas planted with corn for the same cycle, though most corn plantings have yet to be sown. BCR estimates that the 2023/2024 soybean crop will likely yield 50 million metric tones and the corn crop another 56 million tons. https://www.reuters.com/markets/commodities/argentinas-core-farmland-sees-above-average-rainfall-more-likely-2023-11-15/
2023-11-15 19:03
DETROIT, Nov 14 (Reuters) - The next generation of the Toyota Camry, the best-selling sedan in the U.S. market, will come with only a gas-electric hybrid powertrain, the boldest move yet by the Japanese automaker to push hybrid technology into the heart of the U.S. market. The 2025 Camry will combine a 2.5-liter gasoline engine with an electric drive system tuned to deliver more power in both front-wheel drive and all-wheel drive versions of the car, Toyota said. Compliance with tougher U.S. fuel economy rules was a factor in Toyota's decision to make the new Camry an all-hybrid vehicle line, dropping four- and six-cylinder combustion models that made up about 85% of sales in the current model year, David Christ, head of the Toyota brand in North America, told Reuters. Another factor behind the decision was "the performance we were able to get out of the hybrid," he said. While Toyota has accelerated development of electric-vehicle technology, it is still betting that demand for hybrids and plug-in hybrids will remain robust as the automaker takes a "multi-pathway" approach seeking to satisfy customer needs in every market. The hybrid powertrain and a new electronic all-wheel drive system deliver 232 combined horsepower – nearly 15% more than the outgoing Camry with a mechanical all-wheel drive system, Toyota said. Toyota executives unveiled the ninth generation of the midsized Camry sedan on Tuesday in Los Angeles, ahead of the Los Angeles Auto Show that opens on Friday. The new Camry will compete in a segment largely abandoned by the Detroit brands, with the exception of General Motors' (GM.N) Chevrolet Malibu. The new Camry's direct competitors - putting aside scores of compact and midsized SUVs - will include a few remaining sedans such as the Honda (7267.T) Accord, the Hyundai (005380.KS) Sonata and Tesla's (TSLA.O) all-electric Model 3. The Tesla Model 3 outsold the Camry in California, a key market for Toyota, during the first nine months of 2023, according to data from the California New Car Dealers Association. Toyota did not disclose pricing or fuel-efficiency figures for the 2025 Camry, due in showrooms next spring. The cheapest Camry hybrid model currently sells for about $2,400 more than the most inexpensive combustion Camry. Most of the hybrid powertrains sell at a $1,500 to $2,000 premium to combustion models, Christ said. "We think the value the hybrid powertrain brings is worth that kind of premium." A current Camry hybrid is rated at 52 miles (84 km) per gallon in combined city and highway driving, compared with a 32-mpg rating for the conventional four-cylinder Camry. The hybrid saves $650 a year in fuel costs compared with the combustion model, according to U.S. government fuel economy data. Toyota previously switched its Sienna minivan to an all-hybrid powertrain approach. The Sienna is "our second-fastest turning car and the car we have the most reservations for," Christ said. https://www.reuters.com/business/autos-transportation/toyotas-camry-best-selling-car-us-goes-all-hybrid-2023-11-15/
