2023-11-21 02:06

Copyrighted Image by: Reuters Investing.com -- Oil prices fell Tuesday, as the dollar steadied following the release of the Fed minutes and investor focus shifted to this weekend’s eagerly-awaited meeting of a group of top producers. By 14:30 ET (19:30 GMT), the U.S. crude futures settled 0.1% lower at $77.77 a barrel, while the Brent contract gained 0.2% to $82.45 a barrel. The crude benchmarks gained around 2% on Monday, adding on to Friday’s 4% rise, after Reuters reported that the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, is set to consider whether to make additional oil supply cuts to shore up prices when it meets on Nov. 26. OPEC+ meeting looms large Saudi Arabia, Russia and other members of OPEC+ have already pledged oil output cuts of about 5 million barrels per day, or about 5% of daily global demand, in a series of steps that started in late 2022. This figure includes a voluntary reduction by Saudi Arabia of one million barrels per day and a 300,000 barrels a day cut in Russian oil exports, both of which last until the end of 2023. “Growing expectations that we will see some action taken by OPEC+ at their upcoming meeting this weekend are providing support,” said analysts at ING, in a note. “Speculators will not want to go into this weekend with sizeable short positions. Given expectations, we will likely have to see at least Saudi Arabia rolling over their additional voluntary cut into 2024.” That said, even if OPEC+ extends the cuts into next year, the global oil market will still see a slight surplus of supply in 2024, said Toril Bosoni, the head of the International Energy Agency's oil markets and industry division earlier Tuesday. Dollar cut some losses even as Fed members offer little new insight on Fed policy The US Dollar Index was slightly higher in a largely muted session as the minutes of the Fed's most recent meeting failed to offer fresh clues on the Fed policy. Federal Reserve policymakers were in support of keeping rates at restrictive levels for "some time" until inflation is clearly on a downward path, according to the minutes of the Federal Reserve’s Oct. 31-Nov. 1 meeting released Tuesday. U.S. inventories in focus Despite the recent gains, oil has dropped about 16% since late September, posting four straight weeks of losses, on concerns of worsening demand, and as crude output in the U.S., the world's top producer, held at record highs. Data released last week showed a bigger-than-expected increase in U.S. oil inventories, and the latest U.S. inventory reports are forecast to show crude and stockpiles rose again the following week. This week's first report from the American Petroleum Institute is due later Tuesday, followed by the official numbers from the Energy Information Administration, on Wednesday. https://www.investing.com/news/commodities-news/oil-rebound-rally-cools-opec-cuts-fed-minutes-in-focus-3239594

2023-11-21 01:44

Copyrighted Image by: Reuters Oil prices are expected to find stability at an average of $83 per barrel in 2024, despite economic headwinds, as predicted by analysts from JPMorgan. This projection accounts for resilient consumption in the United States, robust demand from emerging markets (EM), and stable European markets. Looking further ahead, the bank anticipates a decrease to $75 per barrel in 2025. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have played a significant role in influencing oil prices through their production policies. Earlier this year, between April and June, OPEC+ made notable output cuts, with Saudi Arabia implementing unilateral reductions. These actions steered futures toward rates around $100 per barrel. However, oil values have seen a decline over the past four weeks due to geopolitical tensions, including the Israel-Hamas conflict. Nevertheless, prices experienced a 4% surge ahead of OPEC+'s meeting on the potential for further cuts scheduled for November 26. JPMorgan's analysis also sheds light on the long-term outlook for global oil demand, which is expected to decelerate due to increased energy efficiencies and the adoption of electric vehicles. Additionally, a normalization trend for jet fuel is projected by the end of 2025. The bank warns that a market surplus driven by non-OPEC+ suppliers like the US could push Brent crude into the $60s unless OPEC continues with its voluntary production cuts. To combat this potential surplus and stabilize the market as slower demand growth looms for 2025, OPEC+, including key players such as Saudi Arabia, might extend voluntary production and export cuts into the first quarter of 2024. This year’s demand is set to rise by 1.9 million barrels per day (b/d), against a non-OPEC supply increase of 2.2 million b/d fueled by a U.S. output hike of 1.5 million b/d. In contrast, global oil demand is projected to grow by another 1.6 million b/d in 2024, supported by strong EM economies and a resilient U.S., which non-OPEC countries are likely to match with their own supply rise of about 1.7 million b/d. These insights were part of discussions at the ADIPEC event, which hosted industry experts deliberating on these market dynamics and future trends in energy consumption and production. https://www.investing.com/news/commodities-news/jpmorgan-forecasts-oil-stability-at-83barrel-in-2024-amid-global-challenges-93CH-3239590

2023-11-20 22:01

Copyrighted Image by: Jakub Porzycki via Reuters Connect Cryptocurrency firm Tether has taken a significant step in the fight against cybercrime by freezing $225 million worth of its USDT tokens. The move, announced today, is part of a collaborative effort with cryptocurrency exchange OKX and the Department of Justice (DOJ) to disrupt the financial operations of a Southeast Asian human trafficking group involved in a "pig butchering" scam. The scam, which has been particularly prevalent in India, deceives individuals by offering false romantic or financial opportunities and then defrauding them. This proactive measure by Tether underscores the company's dedication to upholding integrity within the digital currency space and preventing its platform from being used for illegal activities. Paolo Ardoino, CEO of Tether, emphasized the importance of this action in maintaining the standards of integrity that are essential to the cryptocurrency industry. By working alongside law enforcement agencies like the DOJ and partnering with other crypto platforms such as OKX, Tether aims to create a safer environment for users and to deter criminals from exploiting digital currencies for illicit purposes. https://www.investing.com/news/cryptocurrency-news/tether-partners-with-okx-doj-to-freeze-225-million-in-scam-crackdown-93CH-3239519

2023-11-20 18:57

Copyrighted Image by: Reuters The cryptocurrency Ethereum has surged to $2,000 today, buoyed by investor enthusiasm following BlackRock (NYSE:BLK)'s recent Ethereum ETF filing. This significant milestone in ETH's value is coupled with a notable shift of 152,583 ETH to cold storage, as reported by CryptoQuant's Exchange Reserves metric. The move has reduced exchange reserves to a five-year low of just 14.3 million coins, a level last observed in July 2018. This dwindling supply on exchanges could signal an impending scarcity that may drive prices even higher, potentially edging closer to the all-time high of $4,891 seen back in 2021. Earlier today, the market saw an immediate bullish reaction to BlackRock's ETF application, with Ethereum's price jumping and derivatives trading sentiment turning positive. The funding rate for ETH contracts reached 0.034%, reflecting the market's anticipation of arbitrage opportunities that could further influence open interest and funding rates. Strategies involving spot buying and contract shorting are expected to play a role in this dynamic. Additionally, the stablecoin supply could impact market movements. BlackRock's step towards an Ethereum ETF is viewed as a major nod of institutional validation for Ethereum and sets it apart from Bitcoin's recent performance. This was evidenced by a 10% rebound in the ETH/BTC exchange rate today. Data from Coinglass showed a more than 16% increase in open interest across the ETH derivatives market. High trading volumes and volatility are anticipated to continue as strategic short-term trading looks to take advantage of price swings and funding rate disparities brought on by heightened institutional activity. https://www.investing.com/news/cryptocurrency-news/ethereum-price-hits-2000-amid-blackrock-etf-buzz-and-cold-storage-shift-93CH-3239386

2023-11-20 18:46

The US Justice Department is reportedly seeking over $4 billion from cryptocurrency exchange Binance Holdings Ltd. as part of a settlement for a criminal case involving allegations of laundering ransomware proceeds, bank fraud, and sanction violations, according to a Bloomberg report. The founder of Binance, Changpeng Zhao, commonly known as "CZ," could potentially face charges as part of the probe. This development comes as the cryptocurrency industry faces increased scrutiny following high-profile incidents of fraud and regulatory evasion. The Justice Department's investigations encompass allegations that Binance evaded sanctions against Iran and Russia and maintained financial ties to Hamas. These inquiries follow the conviction of FTX's founder for fraud, casting a shadow over the cryptocurrency sector. The legal challenges for Binance are not limited to the DOJ; the Securities and Exchange Commission (SEC) has also filed a lawsuit accusing the exchange and Zhao of mismanaging customer funds and committing securities violations in June 2023. Earlier in the year, in March 2023, the Commodity Futures Trading Commission (CFTC) charged Binance with continuous derivatives regulation breaches. In response to these legal pressures, there is mounting speculation that Binance may need to undergo leadership changes. The company's US arm has already experienced significant workforce reductions after losing essential banking support, leading to a suspension of USD deposits and withdrawals due to severed banking relationships. The DOJ is considering a deferred prosecution agreement as a potential resolution, which would require Binance to admit wrongdoing and pay substantial fines while undergoing compliance monitoring. This approach aims to allow the exchange to continue operating without causing disruption in the market. A decision on this matter could be reached by late November. Additionally, a settlement could enforce penalties and stricter Know Your Customer (KYC) protocols on Binance to deter cybercriminals from using the platform for illegal fund transfers. This information comes from an IRS and CFTC's three-year inquiry into Binance's anti-money laundering practices which concluded today. Changpeng Zhao's background includes a period at Bloomberg from 2002-2005 before founding Binance, which has since grown into one of the world's largest cryptocurrency exchanges by trading volume. As the situation unfolds, all eyes will be on how Binance navigates these complex legal challenges and what impact it will have on its future operations. Despite being at risk of U.S. criminal charges, CZ is based in the UAE where no extradition treaty with the U.S. exists. https://www.investing.com/news/cryptocurrency-news/binance-faces-4-billion-doj-claim-leadership-under-pressure--bloomberg-93CH-3239379

2023-11-20 18:41

Copyrighted Image by: Reuters. The OMG Network, known for its off-chain scaling solution for Ethereum, is making strides in the cryptocurrency space by offering a plasma-based sidechain that promises to speed up ETH and ERC20 token transfers while slashing costs. This technological innovation is aimed at mainstream business adoption, providing an impressive energy savings of up to 99% compared to the current Ethereum model. The network utilizes the OMG utility token for transaction fee payments and is preparing for the introduction of staking opportunities. In a significant move, the OMG Network is transitioning from its Proof of Authority (PoA) consensus mechanism to Proof of Stake (PoS), aiming to boost security and increase stakeholder participation. This development follows a strong financial footing established through a $25 million Initial Coin Offering (ICO) in 2017 and a robust $80 million Series C funding round led by SYNQA. Notable investors include Toyota (NYSE:TM) Financial Services Corporation and Sumitomo Mitsui (NYSE:SMFG) Banking Corporation, signaling strong institutional interest in the platform's potential. Market sentiment toward the OMG token is buoyant, with traders anticipating growth in light of the forthcoming Ethereum ETH 2.0 update. Current trading data indicates that OMG stands at $3.17 against the US dollar and 0.00024093 against Bitcoin on the Binance exchange. The token has experienced significant volatility in the past, ranging from a low of $0.3196 to a high of $28.35. With a market capitalization placing it 36th among cryptocurrencies and a circulating supply exceeding 140 million tokens, OMG Network has carved out a notable niche in the digital asset market. However, details regarding its total supply remain undisclosed as the platform continues its upward trajectory. https://www.investing.com/news/cryptocurrency-news/omg-network-eyes-mainstream-business-with-ethereum-scaling-solution-93CH-3239385