Asia > Eastern Asia > Hong Kong > Asian energy firms fired up by rally in oil prices

Hong Kong: Asian energy firms fired up by rally in oil prices


Oil prices pressed on with fresh gains in Asian trade on Tuesday, boosting energy firms, next Russia and Saudi Arabia indicated they could extend an output cut into next year.

The world's top two crude-producing nations raised the idea at the weekend, with a transaction agreed between OPEC — of which Saudi Arabia is the key player — and Russia coming to an end in six weeks.

The news sent oil prices soaring about 2 % on Monday, in turn dragging world energy firms with them.

Monday's gains come next the commodity was battered before this month on worries that the production cut was not enough to make a dent in a worldwide supply glut and increasing output from the US and other nations.

"The comments from Saudi Arabia and Russia are driving prices up but I'm sceptical that crude will see a new level," Hong Sung Ki, a commodities analyst at Samsung Futures, told Bloomberg News.

"As producers in the US are expected to increase output, prices will continue to be restricted from rising."

But Greg McKenna, chief market strategist at AxiTrader, pointed out the fact that traders were overlooking the need for a further cut in oil output suggested problems persisted.

"That such a large output cut extension is a tacit admission of failure is for an extra day and discussion," he said in a note.

On Tuesday the International Energy Agency said supply and request in the oil market are close to matching up but warned rising US supply could mitigate the OPEC-led production cuts.

Hong Kong-listed PetroChina gained 0.4 % and CNOOC put on 0.3 %, while Woodside Petroleum in Sydney was up 0.2 % and Rio Tinto jumped 1.4 %.

Euro extends gains

On equity markets, Tokyo edged up 0.3 % by the close, Hong Kong slipped 0.1 % on profit-taking following a six-day rally, while Shanghai finished up 0.7 %, marking a fourth straight day of gains.

Seoul and Sydney each added 0.2 %.

But Singapore, Taipei and Wellington were all lower.

In New York the S&P 500 and Nasdaq each ended at record highs, as did London and Frankfurt, with German traders cheering a strong win for Chancellor Angela Merkel's party in a regional vote.

In early European trade on Tuesday, London opened slightly higher but Frankfurt lost 0.2 % while Paris was 0.5 % lower.

On currency markets, the euro extended gains to break above $1.10 next the German election result while the dollar's weakness has as well been caused by a series of below-par results out of the US, inclunding on inflation.

"The euro is strengthening as political concerns in Europe relieve while the dollar is being sold" next the weak economic data, Marito Ueda, a senior dealer at FX Prime, told AFP.

The greenback was as well down against most other higher-yielding currencies, with the South Korean won 0.7 % higher, the Thai baht up 0.2 % and the Malaysian ringgit 0.5 % stronger.

Related Articles
  • Uganda denies minister was bribed by former Hong Kong home affairs secretary Patrick Ho

    2017/11/29 US Department of Justice claims Ho considered setting up yuan exchange centre in Uganda with the family of foreign minister Sam Kutesa. Uganda on Friday rejected US accusations that its foreign minister curried favour with a Chinese energy firm in return for US$500,000 in bribes from Patrick Ho Chi-ping, Hong Kong’s former home affairs secretary presently under arrest in the US on corruption charges. According to the Department of Justice in the United States, Ho was contemplating last year setting up Africa’s initial yuan exchange centre in Uganda by collaborating with the family of foreign minister Sam Kutesa.
  • A Stronger Australia in Southeast Asia?

    2017/11/02 Early next year, Sydney will play host to a appropriate summit between Australia and the members of the Association of Southeast Asian Nations (ASEAN), which is commemorating its 50th anniversary this year. But as we approach that conference, questions remain about what role Canberra should really play in Southeast Asia amid concerning developments within the subregion, vexing security issues in Asia additional broadly, and uncertainty over the role of other powers inclunding the United States. Australia’s position and standing as a wealthy, Western-oriented country in the region, one would think, would give it an chance at the negotiating table where critical issues like North Korea and a potential conflict in the South China Sea will dictate the broader schedule. And some analysts continue to argue that the Australian government should take a additional proactive stance with ASEAN, which is facing difficult times as individual members take unilateral action to silence dissent, upsetting civil rights groups and a lot of in the West.
  • The downsides to Singapore’s education system: streaming, stress and suicides

    2017/09/23 Singapore’s education system is reputed for producing children who top the world rankings in standardised tests. The city national took initial place in the last Pisa (world education rankings. The country’s school system is geared towards high succcess in exams, but the emphasis on rote learning and memorisation, combined with pressure to succeed, affects children’s social skills, health and in general happiness .Run by the Organisation for Economic Co-operation and Development, Pisa tests, conducted each three years, are intended as a measure of problem-solving and cognition. From presently on Singapore’s superiority in the rankings may be coming at an equally high price.
  • The birth of the green bond

    2017/09/23 Corporate finance is evolving. Top management teams and senior company executives are under growing pressure to adopt management practices and investment choices that are both socially responsible and financially rewarding. These objectives can sometimes be at odds with each other. The pressure for firms to be socially responsible is growing at a rapid pace. This is authentic particularly in the Better China region, which is fast establishing itself as a specialist hub for energy finance. To see this, one may consider two defining milestones of 2017, affecting corporations operating in the region.
  • UNWTO: International tourism – strongest half-year results since 2010

    2017/09/09 Destinations worldwide welcomed 598 million international tourists in the initial six months of 2017, some 36 million additional than in the same period of 2016. At 6%, increase was well above the trend of recent years, making the current January-June period the strongest half-year since 2010. Visitor numbers reported by destinations around the world reflect strong request for international travel in the initial half of 2017, according to the new UNWTO World Tourism Barometer. Worldwide, international tourist arrivals (overnight visitors) increased by 6% compared to the same six-month period last year, well above the sustained and consistent trend of 4% or higher increase since 2010. This represents the strongest half-year in seven years.