2023-10-16 21:01

Copyrighted Image by: Reuters. Investing.com - Crude prices settled little changed Tuesday as the trade awaited data that could show a drop in US crude stockpiles for last week, even as the White House worked on a deal to reduce sanctions on Venezuelan oil that might add to global supply. Russia’s unwillingness to commit to how much oil it may produce from November onwards, under its OPEC+ collaboration with Saudi Arabia and other producers, also made the trade somewhat queasy, some market sources said. OPEC+ is a 23-nation alliance that groups the 13-member Saudi-led Organization of the Petroleum Exporting Countries with 10 independent oil producers, including Russia. Moscow and Riyadh announced previously that they would hold back a joint 1.3 million barrels per day of their regular production till the end of the year, with 300,000 of that coming from Russia and the balance 1.0 million from the Saudis. But supply deficiencies within Russia and the Kremlin’s need to maximize oil revenues — despite a 30% gain in crude prices in the third quarter — could force Moscow to revisit those plans, say those in the know. Russia’s non-committal to Nov production makes market queasy Russian Deputy Prime Minister Alexander Novak reinforced those suspicions when he told reporters on Tuesday that “it is still too early to talk about (an) OPEC+ decision in November”. To add to the trade’s consternation, Russia’s central bank said OPEC+, at its next meeting, will discuss a possible oil output increase in early 2024 “in the event that global oil deficit worsens”. While Moscow’s supposed concern for the global economy is doubtful, its willingness to fill a supply gap and profit from it is far more believable. New York-traded West Texas Intermediate, or WTI, crude for delivery in November settled Tuesday’s unchanged at $86.66. The US crude benchmark dipped 0.9% in the previous session after a 6% gain last week on what some described as overblown concerns about sanctions actions by the White House against shippers colluding with Moscow to transport Russian oil at above $60 per barrel cap set by the G7 to punish Vladimir Putin’s administration over its invasion of Ukraine. London-traded Brent crude for the most-active December contract settled at $89.90, up 25 cents per barrel, or 0.3%, after Monday’s 1% slide. Last week, the global crude benchmark gained 7.5%. Higher Venezuelan supply scenario Limiting the upside in oil was the impending US deal that would ease exports of Venezuelan crude in exchange for political reforms in the South American country. Since 2019, the United States has imposed sanctions on oil exports from Venezuela, itself a member OPEC, to punish President Nicolas Maduro's government for 2018 elections that Washington considered a sham. Notwithstanding those sanctions, the White House has been looking for ways to increase the global flow of oil choked now by OPEC+. "The global economy would like to see Venezuela [as] a player again in world oil markets," former US ambassador to Venezuela Patrick Duddy said. Even so, industry experts say any sanctions relief on Venezuela would take time to translate into barrels because of additional drilling and other investments that have to be made. US crude stock drop anticipated for last week Market participants were also on the lookout on Tuesday for U.S. weekly oil inventory data, due after market settlement from API, or the American Petroleum Institute. The API will release at approximately 16:30 ET (21:30 GMT) a snapshot of closing balances on U.S. crude, gasoline and distillates for the week ended Oct. 13. The numbers serve as a precursor to official inventory data on the same due from the U.S. Energy Information Administration on Wednesday. For last week, analysts tracked by Investing.com expect the EIA to report a crude stockpile drop of 1.4 million barrels, versus the 10.176M-barrel build reported during the week to Oct 6. On the gasoline inventory front, the consensus is for a draw of 1.0M barrels, in addition to the 1.313M-barrel decline in the previous week. Automotive fuel gasoline is the No. 1 U.S. fuel product. With distillate stockpiles, the expectation is for a drop of 1.0 million barrels, on top of the prior week’s deficit of 1.837M. Distillates are refined into heating oil, diesel for trucks, buses, trains and ships and fuel for jets. https://www.investing.com/news/commodities-news/oil-prices-extend-losses-amid-meast-uncertainty-venezuela-deal-talk-3200240

2023-10-16 21:01

Copyrighted Image by: Reuters. Investing.com-- Oil prices fell in Asian trade on Tuesday, extending recent losses after reports suggested that the U.S. could potentially relax its sanctions on Venezuela’s oil industry. A lack of immediate escalation in the Israel-Hamas war also spurred bets that the conflict will not spill over into the broader Middle East region, as U.S. officials said that Israel had agreed to provide aid to Gaza. President Joe Biden is also set to visit Israel on Wednesday, Secretary of State Antony Blinken said. While the move pushed up some hopes over a deescalation in the Israel-Hamas war, it also dented bets over disruptions in Middle Eastern oil supply- a notion that had boosted oil prices since the onset of the conflict earlier in October. This, coupled with reports of potential sanctions relief for Venezuela, spurred steep losses in oil prices on Monday. Prices extended losses into early Asian trade on Tuesday. Brent oil futures fell 0.3% to $89.90 a barrel, while West Texas Intermediate crude futures were flat at $85.41 a barrel by 20:59 ET (00:59 GMT). Both contracts slid around $1 on Monday. Venezuela reportedly restarting opposition talks Reuters reported on Monday, citing multiple sources, that Venezuela’s government and the opposition plan to resume long-suspended talks on Tuesday- a move that could eventually see Washington relax its sanctions on the country. Any U.S. action is only expected after President Nicolas Maduro commits to a presidential election date, as well as lifting bans on opposition candidates, the Reuters reports said. While it was unclear when such a scenario will play out, any relaxing of sanctions against Venezuela’s energy sector frees up oil exports from the country- a move that could help ease tight global crude markets. Still, analysts said that while the country could ramp up exports from its massive oil reserves, oil production in Venezuela is expected to remain depressed due to poorly maintained infrastructure and dismal capital spending in the sector. Exports from Venezuela are also unlikely to fill the supply deficit caused by steep production cuts from Saudi Arabia and Russia this year. Israel-Hamas war in close focus Markets were also watching for any new developments in the Israel-Hamas war, although traders appeared convinced that it would not draw in other Middle Eastern countries for the time being. But the conflict still could escalate, as Israel prepares a large-scale ground invasion of Gaza. The country has also maintained its pace of air strikes against the region, after a series of deadly strikes on Israeli border towns by the terrorist group Hamas. Expectations of an escalation in the conflict had driven sharp gains in oil prices last week, as markets bet that the involvement of any more nations, particularly Iran, could disrupt oil supplies in the region. Still, in a move that could herald some deescalation, Israel and the U.S. agreed to let aid into Gaza. https://www.investing.com/news/commodities-news/oil-prices-extend-losses-amid-meast-uncertainty-venezuela-deal-talk-3200240

2023-10-16 17:52

Copyrighted Image by: Reuters. On Monday, Bitcoin and related stocks such as Grayscale Bitcoin Trust and Marathon Digital (NASDAQ:MARA) Holdings experienced a rapid rise in value due to market speculation. The speculation was driven by a report published by Cointelegraph, which suggested that the Securities and Exchange Commission (SEC) had approved BlackRock (NYSE:BLK)'s Bitcoin-based iShares Exchange-Traded Fund (ETF). The report led to an anticipatory surge in the market, with Bitcoin peaking at an 8.4% increase, Grayscale at 16.2%, and Marathon at 16%. However, the gains were short-lived as BlackRock debunked the report later in the day. This caused a sharp decline in the value of these assets. By the afternoon, Bitcoin was up by only 4%, Grayscale by 2.1%, and Marathon by 7%. The incorrect report had fueled investors' anticipation of gaining direct access to Bitcoin through traditional brokerages via BlackRock's Bitcoin ETF. Such a development would mark a significant shift in the market, contrasting with existing Bitcoin funds like Grayscale that are either traditional mutual funds or ETFs tethered to the price fluctuation of Bitcoin futures. The market continues to face uncertainty due to the SEC's ongoing indecision regarding Bitcoin ETFs, which prevents investors from having direct access to Bitcoin through traditional brokerage channels. This uncertainty persists despite Monday's short-lived speculative surge and subsequent decline in Bitcoin and related stocks. https://www.investing.com/news/cryptocurrency-news/bitcoin-and-related-stocks-see-speculative-surge-then-decline-93CH-3200196

2023-10-16 17:49

Copyrighted Image by: Reuters MicroStrategy (NASDAQ: MSTR), a globally recognized data analytics company and the largest corporate holder of Bitcoin, has increased its Bitcoin holdings to over $4.8 billion. This move comes despite a 30% drop in the company's stock price amid the current downturn in cryptocurrency markets, known as the crypto winter. The firm, known for its products like MicroStrategy AI and services for clients such as Pfizer (NYSE:PFE), Sony (NYSE:SONY), Visa (NYSE:V), and Hilton, has made it clear that it has no plans to sell its Bitcoin assets in the near future. Since it began accumulating Bitcoin in 2020, MicroStrategy's stock performance has been positive overall. The cryptocurrency market has shown resilience during challenging times such as the Covid-19 pandemic, the FTX collapse, and periods of high interest rates. Bitcoin reached its highest level in two decades during these turbulent periods. Looking ahead, events such as the upcoming Bitcoin halving in April and an expected decrease in interest rates by 2024 could further boost both Bitcoin and MSTR prices. https://www.investing.com/news/cryptocurrency-news/microstrategy-expands-bitcoin-holdings-despite-recent-stock-dip-93CH-3200190

2023-10-16 17:48

In a recent testimony, Caroline Ellison highlighted intricate financial transactions between Alameda Research, FTX, and Tether. The revelations contradict earlier claims regarding the issuance and distribution of tethers (USDT), adding more complexity to the ongoing legal battles of Sam Bankman-Fried. Ellison revealed that $2 billion out of $10 billion from FTX customers in Alameda's account was returned as stablecoins. This statement challenges previous assertions that Alameda issued about 37 billion USDT, with 30 billion going to FTX and most of the remaining to Binance and Huobi. The exact origin of these tethers, whether they were generated by Alameda's profitable trades or not, remains uncertain amidst Bankman-Fried's ongoing legal issues. Further complicating the matter is the 'Fiat Integration Agreement' between an FTX group company and iFinex, which is associated with Bitfinex cryptocurrency exchange and Tether. Both Bitfinex and Tether share stakeholders like Digfinex. Paolo Ardoino, a prominent figure in this scenario, previously denied on Twitter any credit exposure between Tether and FTX or Alameda. However, contradicting Ardoino's claims, Gary Wang testified that Alameda had been leveraging customer funds since 2019. The evolving situation casts a spotlight on the complex financial relationships between these entities and raises questions about their operations. As these revelations continue to surface, the industry will be closely watching for further developments. https://www.investing.com/news/cryptocurrency-news/ftx-alameda-research-entangled-in-complex-financial-transactions-93CH-3200191

2023-10-16 16:16

Binance, one of the world's leading cryptocurrency exchanges, announced on Monday that it would suspend new user registrations in the UK from 5 PM local time. This decision comes as a response to the Financial Conduct Authority's (FCA) stringent approach towards cryptocurrency regulation and its newly enforced rules on cryptoasset promotions, which came into effect on October 8. The FCA's rules allow overseas firms like Binance to market their crypto operations in the UK, provided they engage with an FCA-approved entity. Binance's former partner, Rebuildingsociety.com Ltd, recently faced legal restrictions from the FCA that impeded financial promotion approvals. The suspension follows high-profile industry collapses last year and is part of a broader effort to navigate the evolving regulatory landscape. Binance is actively seeking a new FCA-authorised firm to approve its financial promotions, demonstrating its commitment to adhering to regulatory norms. Existing UK users who have passed the Investor Declaration and Appropriateness Test will maintain service access, though new services are on hold during this period. Binance is liaising with the FCA to minimize disruption from high-risk crypto assets and find a suitable firm for financial promotion approval. The FCA has underscored its commitment to consumer protection by threatening violators with two years imprisonment, an unlimited fine, or both. This move by Binance illustrates the growing pressures faced by cryptocurrency companies in navigating global regulatory frameworks. https://www.investing.com/news/cryptocurrency-news/binance-suspends-uk-new-user-registrations-amid-regulatory-pressure-93CH-3200119