RIYADH - Energy giant Saudi Aramco said on Sunday its second-quarter profits plunged a massive 73 percent due to sharply lower oil prices as the coronavirus crisis undercuts global demand.
The behemoth, recently dethroned by Apple as the world's most valuable listed company, posted a net profit of $6.6 billion for the three months to June 30 compared to $24.7 billion for the same period of 2019.
The results are in line with analysts' expectations but stand in contrast to the losses reported by its rival energy giants, which are reeling from a drop in oil demand since the start of the novel coronavirus pandemic.
"Strong headwinds from reduced demand and lower oil prices are reflected in our second quarter results," Aramco's chief executive Amin Nasser said in a statement.
"Yet we delivered solid earnings because of our low production costs, unique scale, agile workforce and unrivalled financial and operational strength."
Aramco's net profit for the first half of the year also slumped by 50.5 percent to $23.2 billion, compared to $46.9 billion in the same period last year.
The results underscore a downbeat oil market as pandemic-driven economic shutdowns crush the global demand for crude.
Five other leading oil firms -- BP, Chevron, ExxonMobil, Royal Dutch Shell and Total -- recently reported combined losses of $53 billion for the second quarter.
By contrast, Aramco's results reflected its "financial resilience", Nasser said, as the company presses ahead with a plan to pay $75 billion in dividends this year.
Nasser also voiced optimism over what he called a "partial recovery in the energy market" amid an easing of virus restrictions in some countries.
But amid low crude prices, Aramco is looking at cutting its 2021 budget by between eight and 10 percent from this year's already reduced levels, the Energy Intelligence group reported last month.
Aramco has said it expects capital expenditure to be at the "lower end of the $25 billion to $30 billion range" this year.
That is significantly lower than its expenditure of $32.8 billion in 2019, according to Energy Intelligence.
"Cutbacks have already caused Aramco to delay plans to expand production from its offshore fields," Energy Intelligence said in a report.
"The offshore program was a core element of a push to raise the company's oil production capacity."
The company has also slashed hundreds of jobs as it seeks to reduce costs, Bloomberg News reported in June.
Saudi Arabia, the world's biggest crude oil exporter, has been hit hard by the double whammy of low prices and sharp cuts in production.
A sharp drop in oil income is expected to hinder Crown Prince Mohammed bin Salman's ambitious plans to overhaul the kingdom's energy-reliant economy.
Oil prices dropped to a two-decade low below $20 a barrel in April and May as the coronavirus dampened demand, before recovering to around $44 a barrel after the OPEC+ producers agreed to record output cuts.
Following the move, Saudi oil production dropped to 7.5 million barrels per day in June, compared to last year's average of 10 million bpd.
Aramco's profits were also impacted by the losses posted by the Saudi Basic Industries Co. (SABIC), the petrochemicals giant it acquired for $69 billion in a deal completed this year.
The energy giant is bracing for a possible further wave of coronavirus infections that could impact a tentative global economic recovery and erode the demand for crude worldwide, analysts say.
Aramco was listed on the Saudi bourse in December following the world's biggest IPO, generating $29.4 billion for 1.7 percent of its shares.
US technology firm Apple last week replaced it as the world's most valuable company after its capitalisation grew to $1.9 trillion, compared to $1.76 trillion for Aramco.
Nasser said Aramco would distribute $18.75 billion in dividends for the second quarter to keep its listing promise of distributing at least $75 billion in annual dividends for five years.
"We are committed to delivering sustainable dividends through market cycles, as we have demonstrated this quarter," Nasser said in a media call, according to Bloomberg News.
"Our intention is to pay $75 billion, subject to board approval, of course, and market conditions."
Agence France-Presse
DUBAI/MOSCOW - OPEC leader Saudi Arabia and non-OPEC Russia have agreed a preliminary deal to extend existing record oil output cuts by one month while raising pressure on countries with poor compliance to deepen their cuts, OPEC+ sources told Reuters.
OPEC+ agreed to cut output by a record 9.7 million barrels per day, or about 10% of global output, in May and June to lift prices battered by plunging demand linked to lockdown measures aimed at stopping the spread of the coronavirus.
Rather than easing output cuts in July, OPEC and its allies, a group known as OPEC+, were discussing keeping those cuts beyond June.
"Saudi Arabia and Russia are aligned on the extension for one month," one OPEC source said.
"Any agreement on extending the cuts is conditional on countries who have not fully complied in May deepening their cuts in upcoming months to offset their overproduction," the source said.
The group also considered holding an online meeting on June 4 to discuss output policy, after Algeria, which holds the presidency of the Organization of the Petroleum Exporting Countries, proposed bringing forward a meeting planned for June 9-10.
The OPEC source said that an earlier meeting on June 4 is also conditional on compliance and that the discussions now are about implementing criteria for those countries who have not fully complied with the oil cuts and how they can compensate for their overproduction in the coming months.
OPEC members Iraq and Nigeria has shown weak compliance with its output reduction targets in May. OPEC/O
Kazakhstan also failed to fully meet its obligations under the OPEC+ oil cut pact, sources said.
Two sources also told Reuters that Gulf OPEC producers Saudi Arabia, Kuwait and the United Arab Emirates are not discussing extending their deeper voluntary oil cuts of 1.180 million bpd beyond June.
Oil prices rose in recent days from the lows of April buoyed by a continuing recovery in China, the epicenter of the coronavirus outbreak, while other economies are slowly opening up after lockdowns to contain its spread.
"Overall the market is moving in the right direction with the gradual easing of the lockdown. But we still need to be cautious. There is always a risk of another wave of the coronavirus," the first OPEC source said.
"The other thing is how quickly will demand patterns recover. Inventories are still above average levels and that needs to be tackled." (Reporting by Rania El Gamal and Olesya Astakhova, editing by Louise Heavens and David Evans)
-reuters-
LONDON - European stock markets rose on Monday and oil prices climbed to their highest in as much as two months as a loosening of coronavirus shutdowns boosted market sentiment, even though the deadly outbreak has yet to be fully contained.
Warm weather enticed much of the world to emerge from coronavirus lockdowns as centers of the outbreak from New York to Italy and Spain gradually lift restrictions that have kept millions cooped up for months.
However, the weekend also saw anti-lockdown protesters in countries such as the United States, Germany, England and Poland arguing government restrictions demolish personal liberties and are wrecking economies.
The pan-European STOXX 600 was up 2% at 1020 GMT, with heavyweight bourses in Britain, Germany and France all comfortably in positive territory, recovering some of last week's losses.
"The resilience of stock markets relative to the awful economic data that we’ve been seeing over the past fortnight speaks to an optimism that... as economies come out of lockdown we can expect to see improvements as we head into the second half of the year," said Michael Hewson, chief market analyst at CMC Markets.
Governments must balance the economic incentive to re-open businesses with the risk of triggering a deadly second wave of the virus, which has killed more than 312,000 people and spread to at least 210 countries since December.
Deutsche Bank strategist Jim Reid said, "It does feel like we’re in the middle of a phoney war at the moment with all of us waiting to see how efficiently the various economies are able to re-open given all the social distancing that will be required."
There were still lots of obstacles to a rapid recovery, with Federal Reserve Chairman Jerome Powell saying in an interview on Sunday that a U.S. economic recovery may stretch deep into 2021.
The most important data for the U.S. economy now are the "medical metrics" around the coronavirus pandemic, he said.
Health ministers from around the world, including China and the U.S., are expected to call for an independent evaluation of the World Health Organization's handling of the COVID-19 pandemic during a WHO meeting on Monday.
Already rocky U.S.-China relations also saw tensions increase over the weekend, as the United States raised threats over telecoms equipment giant Huawei Technologies and China's treatment of journalists in Hong Kong.
U.S. lawmakers and officials are crafting proposals to push American companies to move operations or key suppliers out of China, including tax breaks, new rules, and carefully structured subsidies.
Japan's preliminary GDP data showed that the world's third biggest economy contracted an annualised 3.4% in the first quarter, slipping into a recession for the first time in more than five years.
But hopes of a worldwide economic recovery saw oil prices climb by more than $1 a barrel on Monday, supported by output cuts.
Brent crude reached as much as $34.35 a barrel on Monday, its highest since April 9, and was last up 5.3% at $34.22 . U.S. West Texas Intermediate crude was up 7.1% at $31.51 a barrel - a two-month high.
In commodity markets, the flood of liquidity from central banks, combined with record-low interest rates and poor economic data from the U.S., lifted gold to a seven-year peak. The metal was last up 1.3% at $1,763 an ounce, with silver and palladium also boosted.
The MSCI world equity index, which tracks shares in 49 countries, was up around 0.4% while MSCI's main European Index was up 2%.
Government bond yields edged higher across the euro area, while France's bonds saw some underperformance after its ratings outlook was lowered by Fitch Ratings.
Europe's biggest budget airline, Ryanair, reported a 13% rise in profit for the year to March 31, but cut its annual passenger traffic target by a further 20% and said it had "no visibility" on customer demand once it reopens much of its network on July 1. Ryanair shares were last up 10.4%.
The dollar fell slightly against a basket of six major currencies in early London trading before recovering somewhat, last down less than 0.1% since New York's close.
The Norwegian crown was lifted by the rising oil prices, up around 0.8% versus the euro.
Sterling fell below $1.21 - its lowest since March 26 - late on Sunday after the Bank of England's chief economist said the bank is looking more urgently at options such as negative interest rates.
It was last up 0.25% on the day at $1.2130, as a lack of progress in Brexit negotiations continue to weigh on the pound.
(Reporting by Elizabeth Howcroft; Editing by Toby Chopra and Peter Graff)
-reuters-
SINGAPORE - Brent crude plunged more than 12 percent to below $17 a barrel Wednesday while US oil erased early gains and fell, as the coronavirus strangles demand and ravages energy markets, while storage facilities approach full capacity.
In another day of volatile trading, US benchmark WTI surged in early Asian deals while Brent also edged up on news that top producers had held talks -- only for prices to suddenly change course.
Brent dropped 12.31 percent to $16.98 a barrel, extending heavy losses from a day earlier.
WTI for June delivery, which had rebounded about 20 percent at the open, was down around five percent at $11 a barrel in the afternoon.
On Monday, WTI for May delivery collapsed to an unprecedented low of minus $40.32 as traders scrambled to sell it before the contract expired Tuesday, but could find few buyers with storage capacity fast filling up.
The negative prices meant that traders were forced to pay to have the crude taken off their hands.
Analysts said the morning bounce was driven by news that members of exporting group OPEC, as well as some allies in the OPEC+ grouping, held a teleconference Tuesday -- but grim reality soon returned to the markets.
Prices have plunged as lockdowns and travel restrictions introduced worldwide to stem the spread of the virus hammer demand, and observers believe there is little way out for oil except bringing an end to the pandemic.
"The overtly bearish sentiment may well keep prices suppressed in the near-term until we find the light at the end of the tunnel with progressive resumption of halted economic activities across the globe," said Jingyi Pan, a market strategist with IG.
US crude has been particularly hard-hit because of storage problems, as WTI is delivered at a single, inland point, although the sell-off has now spread to Brent.
The crisis was worsened by a price war between Saudi Arabia and Russia. They drew a line under the dispute earlier this month and, along with other top producers, agreed to slash output by almost 10 million barrels a day to shore up virus-hit markets.
But that has had little effect, with prices continuing to plummet, as analysts predict it will not make up for the massive hit to demand.
Agence France-Presse
RIYADH - From empty hotels to shuttered beauty salons, oil-dependent Saudi Arabia is bracing for a coronavirus-led economic slump on top of possible austerity measures as crude prices go into free fall.
Huge losses are expected after the Arab world's biggest economy shut down cinemas, malls and restaurants, halted flights, suspended the year-round umrah pilgrimage and locked down eastern Qatif region -- home to around 500,000 -- in a bid to contain the deadly virus.
The top crude exporter also faces plummeting oil prices, which slipped below $30 a barrel this week for the first time in four years, on the back of sagging demand and a price war with Russia.
The shock of this liquidity sapping cocktail of events has necessitated austerity measures which are likely to imperil grandiose diversification projects.
Adding to the chain of events are the recent arrests of King Salman's brother and nephew, which triggered speculation of political instability amid the government's public silence on the royal purge.
"It's crisis time," said a Saudi government employee, explaining why he had begun converting part of his salary into US dollars and gold coins.
"Everything is unpredictable and we should be ready for the worst."
The central bank has shrugged off fears that plunging oil prices were straining the kingdom's currency, pegged for decades to the US dollar.
A jeweller in Riyadh told AFP he had fielded a number of enquiries to convert "substantial amounts of cash" into gold bars and coins.
SPENDING CUTS
Many government workers fear cuts to state allowances are coming despite rising living costs.
Some Saudis also worry that recruitment in the public and private sectors will freeze, just as unemployment was already high.
Meanwhile, Saudi students are worried that government scholarships for overseas education will take a hit.
The finance ministry has instructed government bodies to submit proposals to slash this year's spending by 20 to 30 percent, the economic consultancy Nasser Saidi and Associates said in a research note.
"This will likely take the shape of postponed projects and delays in awarding contracts" among other economizing measures, the note said.
The kingdom is now preparing budget scenarios in which crude prices could drop as low as $12 to $20 per barrel, according to the Energy Intelligence Group.
"Public confidence depends on government spending and oil sentiment -— both are down," said a consultant advising a Saudi ministry on a major project.
"We don't know if we will have our jobs tomorrow."
The once free-spending OPEC kingpin has instructed Saudi ministries that they need to account for "every penny" they spend, the consultant added.
Saudi authorities did not respond to requests for comment.
Several Riyadh hotels —- many of them empty amid falling tourist numbers —- have been forced to send their staff on unpaid leave.
But providing some support, the health ministry has booked multiple Riyadh hotels to quarantine people after the coronavirus scare, according to several staff and guests who were forced to empty the properties at short notice.
'SURVIVAL OF FITTEST'
The oil crash follows the crude exporter's decision to hike production from April and offer the biggest price cuts in two decades, in retaliation for Russia's refusal to tighten supply as the virus saps demand.
Saudi Arabia has shrugged off criticism that the move could bankrupt its oil-producing rivals, indicating it was no longer willing to play the role of "swing producer" that bears the burden of stabilizing the markets.
"The days of Saudi Arabia absorbing oil market shocks on behalf of the global economy and other producers are probably over," said Saudi expert and author Ali Shihabi.
"The energy game... is now a survival of the fittest."
The deep-pocketed kingdom, with fiscal reserves of around $500 billion, has reiterated it is an ultra low-cost producer of crude and can withstand low prices for years.
But Riyadh has posted a budget deficit every year since the last oil price rout in 2014. It has borrowed over $100 billion and drawn from its reserves to plug the deficit.
Crown Prince Mohammed bin Salman's multi-billion dollar projects to wean the economy away from oil remain vulnerable, and Saudi Arabia needs a crude price of about $80 a barrel to balance its budget.
As economic challenges rise, the detention of royal princes Ahmed bin Abdulaziz al-Saud and Mohammed bin Nayef has fueled fears of instability.
One source close to the royal court dismissed such concerns and said the detentions were meant to send a stern warning within the royal family not to oppose the crown prince.
Yet "the threat to Prince Mohammed isn't coming from his royal rivals," said Kristin Diwan of the Arab Gulf States Institute in Washington.
"It's from the collapse of oil revenues and with them his ambitious economic plans."
source: news.abs-cbn.com
OSLO - The coronavirus outbreak will cut growth in global oil demand by a quarter this year compared to earlier forecasts, Norway's biggest independent energy consultancy Rystad Energy predicted on Tuesday.
Oslo-based Rystad now predicts global oil demand will grow by 820,000 barrels per day (bpd) in 2020, down from a December forecast of 1.1 million bpd.
Crude prices have fallen sharply since news of the virus outbreak first emerged in mid-January.
The outbreak will primarily affect demand in the early part of the year, with the first quarter now expected to see growth of just 100,000 bpd, before consumption recovers later in the year, Rystad argued in a research note.
"Our current assessment implies that the impact of coronavirus will persist throughout all of February and March and will then gradually subside towards June," it added.
In a worst-case scenario however, if travel restrictions last longer, the overall impact for the year could be to lower 2020 demand growth to 650,000 bpd, the consultancy said. (Reporting by Terje Solsvik; Editing by Gwladys Fouche and Jan Harvey)
source: news.abs-cbn.com
LONDON - The burgeoning Iran crisis has sparked oil supply worries over the Strait of Hormuz -- a vital shipping lane for a fifth of global crude -- and also over Iraq's output, analysts say.
Oil prices had surged last Friday after US President Donald Trump ordered the drone assassination of Iran's top general Qasem Soleimani, but the market stabilized on Monday and Tuesday with Middle East crude supplies unaffected.
However, on Wednesday, the oil market shifted higher once more after Tehran launched revenge attacks to target US forces in Iraq, making good on its pledge to hit back over the killing.
Iran fired missiles overnight at Iraqi bases housing the US and British military, officials in Washington and Tehran said.
British Foreign Secretary Dominic Raab voiced concern over "reports of casualties". But Iranian Foreign Minister Mohammad Javad Zarif insisted that the country does "not seek escalation or war".
Traders remain fearful nevertheless that Tehran could seek to block the Hormuz waterway -- a key artery for crude that stretches between Oman and Iran.
Hormuz, one of the world's most congested transit points, links up the region's oil producers with markets in Asia, Europe and North America.
"Supply disruptions were put at the forefront of the agenda for investors," said Mihir Kapadia, CEO of Sun Global Investments.
"These concerns have been fuelled by Friday's killing of Soleimani and it is likely Iran will try and disrupt oil exports that travel through the Straits of Hormuz.
"However ... it remains unclear as to what the next developments will be."
The US government's Energy Information Administration describes Hormuz as "the world's most important oil transit chokepoint" through which 21 million barrels of crude per day passed in 2018.
The strait had already been rocked last year by a string of attacks that Washington and its allies blamed on Iran, accusations Tehran firmly denied.
Its Western foes have also accused Iran of being behind a major attack on Saudi oil installations and Iran has in recent months also repeatedly seized tankers operating in the Gulf.
Traders remain less fearful over the loss of Iranian oil because the Islamic republic remains under punishing US sanctions that were re-imposed by Trump in 2018.
Energy Aspects analyst Christopher Haines noted traders were instead worried about oil output from Iraq -- particularly if US troops are pulled out.
America's military strategy in Iraq was thrown into confusion Monday as the Pentagon admitted a letter from a general informing the Iraqi government of an imminent US troop pullout was sent by mistake.
"There is a potential risk of disruption on Iraq, whose crude exports represent (about) 3.5 million barrels per day," Haines told AFP.
"If US troops leave, it will leave the area less secure," he added.
Iraq is currently the second biggest player in oil cartel OPEC after kingpin Saudi Arabia.
SEB analyst Bjarne Schieldrop agreed that Iraqi production could be impacted by the current crisis -- but so far no oil supplies have been affected.
"Eventual loss of supply in the Middle East may, however, be in Iraq down the road and not so much due to near term retaliations, though so far not a single drop of oil supply has been lost," he said.
Soleimani's assassination, which was carried out by a drone near Baghdad airport, sparked concern about a spreading conflict.
Europe's benchmark oil contract Brent and US counterpart West Texas Intermediate crude had initially won more than three percent each on Friday.
However, those gains fell far short of September 16, when both contacts had rocketed about 14 percent on news of attacks on Saudi Arabian oil infrastructure.
source: news.abs-cbn.com
HONG KONG - Oil prices soared more than four percent Friday and equities reversed early gains following news that the US had killed a top Iranian general, fanning fresh fears of a conflict in the crude-rich region.
The head of Iran's Quds Force, Qasem Soleimani, was hit in an attack on Baghdad's international airport early Friday, according to Hased, a powerful Iraqi paramilitary force linked to Tehran.
Later, Donald Trump tweeted a picture of the American flag, and the Pentagon said he had ordered Soleimani's killing.
Brent surged 4.4 percent to $69.16 and WTI jumped 4.3 percent to $63.84 as investors grow increasingly worried about a possible flare-up in the tinderbox Middle East.
"This is more than just bloodying Iran's nose," said AxiTrader's Stephen Innes. "This is an aggressive show of force and an outright provocation that could trigger another Middle East war."
The killing of Soleimani is a dramatic escalation of tensions between the US and Iran and comes after a pro-Iran mob this week laid siege to the US embassy in Iraq following deadly American air strikes on the hardline Hashed faction.
The attack on the embassy highlighted new strains in the US-Iraqi relationship, which officials from both countries have described to AFP as the "coldest" in years.
It also comes as tensions between the US and North Korea worsen, with Kim Jong Un declaring a self-imposed moratorium on nuclear and intercontinental ballistic missile tests had ended, with talks with the US going nowhere.
"We are waking up to a less safe world than it was only hours ago, especially if we combine this with simmering tension in the Korean peninsula," Innes added.
The drama sent investors rushing for the hills and safe-haven units rallied with the yen up 0.7 percent against the dollar and gold climbing more than one percent.
High-risk currencies retreated against the greenback, with South Korea's won down 0.6 percent, Australia's dollar down 0.4 percent and the South African rand down more than one percent.
Equities sank into the red, having been enjoying the second day of the year rallying on trade optimism.
Hong Kong fell 0.2 percent, while Shanghai shed 0.1 percent. Singapore retreated 0.2 percent, Seoul lost 0.1 percent and Taipei eased 0.3 percent. However, Sydney, Wellington, and Manila held in positive territory.
Markets had all been well up before news of the strike, thanks to ongoing optimism fuelled by the China-US trade agreement, looser central bank monetary policies and easing Brexit worries.
source: news.abs-cbn.com
KHURAIS FIELD, Saudi Arabia - Oil major Saudi Aramco hopes to fix by the end of November the last four key pieces of equipment damaged during attacks last month, in a move to allow it to fully regain production capacity, company officials said on Saturday.
The mid-September attacks on the Abqaiq and the Khurais plants caused damage that halved the crude output of the world's top oil exporter by shutting down 5.7 million bpd of production, driving a spike in oil prices.
Yemen's militant Houthi group claimed responsibility but a U.S. official said the attacks originated from southwestern Iran and Riyadh blamed Tehran. Iran, which supports the Houthis in Yemen's war, has denied involvement.
Aramco restored oil production of around 10 million barrels per day within 10 days and said it was on track to regain its maximum capacity of 12 million bpd by the end of November.
Thousands of people have been working to restore full production of the key source of revenues for the kingdom. Saudi Arabia is preparing to float a small stake in Aramco this or next year in one of the world's biggest share sales ever.
At Abqaiq, the attacks hit five oil processing towers and three were still being restored, Khalid Buraik, vice president of Aramco's Southern Area Oil Operations, told several media invited to the facilities on Saturday. Abqaiq is the world's biggest oil processing facility and has 18 towers.
Buraik said he expected the three towers to be fully repaired within six weeks.
The attacks on Khurais damaged four of five towers. Three had been repaired, said a local senior manager who asked not to be named because he is not allowed to speak to media.
Khurais can process around 1.5 million bpd of crude and Abqaiq around 7 million, though it usually works well below its capacity at around 5 million.
Aramco's current crude oil production capacity stands at 11.3 million bpd, Saudi officials have said, some 0.7 million below the normal level. The kingdom produces just under 10 million bpd as it caps its output as part of an OPEC agreement.
source: news.abs-cbn.com
NEW YORK -- The past week's sudden surge in oil prices brought to mind the nightmare of shortages, but it's not too likely motorists will be queueing to fill up around the world, analysts say.
All it took was a September 14 strike on key oil infrastructure in Saudi Arabia to abruptly leave the world's main supplier producing just half its normal amount. That sent the price of Brent crude flying 15 percent higher in a single day.
The price on a barrel of crude has come back down since then and by Friday was trading around $65.
Given the slowdown in the global economy and the abundance of crude produced worldwide, the prospect of a $100 barrel, for now, doesn't look too likely.
"In essence, the world is far better equipped to handle oil shocks than it was in the '70s," explained Harry Tchilinguirian, the head of commodity research at BNP Paribas.
In 1973, after an embargo by the Organization of the Petroleum Exporting Countries (OPEC) against Israel's allies in the midst of the Yom Kippur War, and in 1979, after the Iranian revolution, crude oil prices soared in just a few months, bringing developed economies to their knees.
Reduced dependence
"Currently, an oil shock would hardly have the same devastating effects" because countries grew accustomed to such events, economists at Commerzbank said in a note.
On top of that, "central banks would not react to a supply shock with massive interest rate hikes to combat rising inflation," they said.
Most importantly, however, economies have reduced their dependence on oil.
Consumption in the United States, for example, rose from 17.3 million barrels per day (mbd) in 1973 to 20.5 mbd in 2018, an increase of only 18 percent even as the country's real gross domestic product jumped 230 percent.
In Germany, households spent only 2.6 percent of their budget on fuel in 2018.
Many economies have taken strides away from heavy oil consumption, thanks to transport and energy-efficient industries, and alternative sources such as natural gas or renewable energy.
When oil prices held well above $100 a barrel between 2011 and 2014, it did not lead to economic collapse. The world has also now become less dependent on a few huge producers.
The first oil crisis led to the creation in 1974 of the International Energy Agency, which requires OECD countries to keep in reserve the equivalent of at least 90 days of their net imports of crude.
On top of that, oil production has branched far beyond the Middle East, said Tchilinguirian, referring to North Sea oil exploited since the 1980s, deep-sea exploitation off the coast of West Africa and Brazil, and the oil sands of Canada.
The United States, long deeply dependent upon imports, has become a major producer and exporter thanks to shale oil and new technologies.
Such factors help smooth things out in the event of a major disruption like the attack on Saudi facilities.
As such, a country like Saudi Arabia would probably no longer decide to voluntarily suspend its exports "because it could lose its status as a reliable supplier," says Alan Gelder, refined products specialist for Wood Mackenzie.
Even if an oil shock is unlikely, "you can never say there is zero risk," said Andrew Lebow, oil market specialist for Commodity Research Group.
"Especially," he added "if there is a major war that closes the Strait of Hormuz," which a third of all petroleum products shipped by sea pass through.
The effects of a possible oil shock, however, "should not be underestimated," the Commerzbank economists warned.
"Many economies are currently struggling with problems anyway and the central banks have little room for maneuver (...) to help the affected economies," they said.
source: news.abs-cbn.com
LONDON - US crude oil hit a 2019 high on Monday and Brent gained a dollar after tight supply and positive signs for the global economy drove both benchmarks' largest first-quarter gains in nearly a decade.
US West Texas Intermediate (WTI) futures were up 68 cents, or 1.13 percent, at $60.82 by 1125 GMT, after briefly reaching their highest in more than four months at $60.90. WTI gained 32 percent in the first quarter.
Brent crude for June delivery was up $1.03, or 1.52 percent, at $68.54, having risen 27 percent in the January-March period.
Positive Chinese factory gauges and signs of progress in Sino-US trade talks have boosted sentiment, helping to buoy regional stock markets.
"Better-than-expected Chinese manufacturing data has helped markets begin the first day of the new quarter on a bullish note, with major stock indices across Asia surging," said Mihir Kapadia, chief executive of Sun Global Investments.
"Chinese manufacturing output is quite reflective of global demand, and any increase indicates a flurry of economic activity across major economies."
The United States and China said they made progress in trade talks that concluded on Friday in Beijing, with Washington saying the negotiations were "candid and constructive" as the world's two largest economies try to resolve their trade war.
Analysts have turned cautiously optimistic on the oil market, a monthly Reuters poll showed on Friday, lifting their forecast for the average Brent price in 2019 for the first time in five months to $67.12.
Hedge funds and other money managers raised their net long US crude futures and options positions to 243,209 in the week to March 26, the US Commodity Futures Trading Commission said.
On the supply front, booming American production has steadied, with the US government reporting on Friday that domestic output in the world's top crude producer edged lower in January to 11.9 million barrels per day.
US energy companies last week reduced the number of oil rigs operating to the lowest level in nearly a year, cutting the most rigs during one quarter in three years, energy services firm Baker Hughes said.
Meanwhile, oil prices are being propped up by US sanctions on Iran and Venezuela along with voluntary supply cuts by the Organization of the Petroleum Exporting Countries and other major producers.
Washington has instructed oil trading houses and refiners to further cut dealings with Venezuela or face sanctions themselves, sources told Reuters, and has urged Malaysia and Singapore to be vigilant for illicit Iranian crude in its waterways.
(Additional reporting by Aaron Sheldrick in Tokyo; Editing by Dale Hudson)
source: news.abs-cbn.com
KUWAIT CITY, Kuwait -- Oil ministers from leading OPEC nations said Sunday they expect prices will arrest their recent slide and rebalance early next year, when a deal on new production cuts takes effect.
Oil prices have shed more than 36 percent since early October to trade at $54 per barrel, due to fears of oversupply and weak global demand.
But OPEC president and United Arab Emirates Energy Minister Suhail al-Mazrouei said the surplus in the oil market was small compared to 2017 and expected it to vanish in one or two months.
"Based on available figures, we have around 26 million barrels of surplus... compared to 340 million barrels in early 2017," the minister told a press conference in Kuwait City.
"I think that we can easily do with this surplus and reach market rebalance in one or two months... in the first quarter of next year," he said.
OPEC -- a cartel of producer countries that has long manipulated output of the commodity to influence global prices in members' favor - and non-OPEC members agreed in early December to trim production by 1.2 million barrels a day from January 1, in a bid to shore up sagging prices.
Mazrouei said that there has been higher than anticipated supply on the market in recent months, as US sanctions on Iran have had a less pronounced effect on the country's oil exports than had been expected.
Iraq's Oil Minister Thamer al-Ghadhban said that there is a consensus among OPEC and non-OPEC producers to comply with the new agreement to trim output in a bid to stabilize the market.
He said the new agreement is valid for 6 months and that the ministers will meet in April to assess the impact of the cuts.
Ghadhban said he believes that the new measures taken by producers will "stop the slide in oil prices."
Mazrouei said that producers are ready to renew the agreement or increase cuts in case the market does not balance.
"If the production cuts of 1.2 million barrels a day is not enough, we will meet again to see what is enough and apply it," he said.
During their meeting next April, the producers are also expected to sign a long-term agreement to formalize cooperation between OPEC and non-OPEC members over oil output.
OPEC has lately been cooperating closely with Russia and other non-cartel producers, in a bid to impose greater control over global output and prices.
source: news.abs-cbn.com
OTTAWA, Canada -- Canada's oil sector, hurt by low prices and a lack of pipeline capacity to get its product to new overseas markets, received $1.2 billion in government aid on Tuesday.
The federal monies include direct aid and export development loans to help the sector "diversify export markets for its resources beyond the United States," according to a statement.
Natural Resources Minister Amarjeet Sohi and Trade Minister Jim Carr at an announcement in Edmonton, Alberta also said additional funding is available to "address bottlenecks in the freight rail system."
"The oil and gas industry is core to Canada's economy," Sohi said.
"These investments will help protect jobs and restore competitiveness during this difficult time," he said.
Sohi added that "getting our resources to non-US markets is the long-term solution to ensuring every barrel of oil gets its full value."
The boost comes amid a particular difficult time in Canada's oil patch.
Canada is the world's fourth largest oil producer and exporter, but almost all of it goes to the United States.
Construction of new pipelines to US Gulf coast refineries and to the Canadian Pacific tidewater for shipping overseas have been held up by environmental protests.
Prices for Western Canadian Select were below $15 in November before bouncing back slightly after Alberta announced it would cut production, as well as buy tanker cars to move oil by rail until new pipelines can be built.
But at $25 on Tuesday, Alberta crude oil was still heavily discounted compared to the benchmark West Texas Intermediate at $47.50.
Alberta lawmakers have warned that Canada is losing tens of millions of dollars per day due to the price differential.
source: news.abs-cbn.com
BEIJING/SINGAPORE - China, seeking to skirt US sanctions, will use oil tankers from Iran for its purchases of that country's crude, throwing Tehran a lifeline while European companies such as France's Total are walking away due to fear of reprisals from Washington.
The United States is trying to halt Iranian oil exports in an effort to force Tehran to negotiate a new nuclear agreement and to curb its influence in the Middle East.
China, which has cut imports of US crude amid a trade war with Washington, has said it opposes unilateral sanctions and defended its commercial ties with Iran.
On Monday, sources told Reuters Chinese buyers of Iranian oil were beginning to shift their cargoes to vessels owned by National Iranian Tanker Co (NITC) for nearly all their imports.
The shift demonstrates that China, Iran's biggest oil customer, wants to keep buying Iranian crude despite the sanctions, which were reimposed after the United States withdrew in May from a 2015 agreement to halt Iran's nuclear program.
"The shift started very recently, and it was almost a simultaneous call from both sides," said one source, a senior Beijing-based oil executive, who asked not to be identified as he is not allowed to speak publicly about commercial deals.
Tehran used a similar system between 2012 and 2016 to circumvent Western-led sanctions, which had curtailed exports by making it virtually impossible to obtain shipping insurance for business with Iran.
Iran, OPEC's third-largest oil producer, relies on sales of crude to China, Japan, South Korea, India and the EU to generate the lion's share of budget revenues and keep its economy afloat.
The United States has asked buyers of Iranian oil to cut imports to zero starting in November. Japan, South Korea, India and most European countries have already slashed operations.
A US State Department official said the Trump administration was aware of China's plans to continue commercial cooperation with Iran and emphasized that Washington was fully committed to enforcing the sanctions.
"We continue to discuss our Iran policy with Chinese counterparts and the implications of our reimposition of sanctions," the official said, responding to the Reuters report.
French oil major Total, previously one of the biggest European buyers of Iranian oil, has said it had no choice but to halt imports and abandon Iranian projects to safeguard its operations in the United States.
On Monday, Iranian Oil Minister Bijan Zanganeh said Total had officially left Iran's South Pars gas project.
Total later confirmed it had notified the Iranian authorities of its withdrawal from South Pars after it failed to obtain a waiver from US sanctions. Iranian officials had earlier suggested China’s state-owned CNPC could take over Total’s stake and Zanganeh said the process to replace the French company was under way.
"As for the future of Total's share, we have not been informed of an official CNPC position, but as we have always said, CNPC, a Chinese state-owned company, has the right to resume our participation if it decides so,” Total said in an emailed statement.
WALK AWAY
French President Emmanuel Macron has repeatedly called for safeguarding the Iranian nuclear deal and defended the interests of EU companies in Iran. But most European companies have conceded that they would be forced to walk away from Tehran for fear of sanctions and losing access to operations that require US dollars.
The first round of US sanctions, which included cutting off Iran and any businesses that trade with it from the US financial system, went into effect on Aug. 7. A ban on Iranian oil purchases will start in November.
Insurers, which are mainly US- or European-based, have begun winding down their Iranian business to comply with the sanctions.
To safeguard their supplies, state oil trader Zhuhai Zhenrong Corp and Sinopec Group, Asia's biggest refiner, have activated a clause in long-term supply agreements with National Iranian Oil Corp (NIOC) that allows them to use NITC-operated tankers, four sources with direct knowledge of the matter said.
The price for oil under the long-term deals has been changed to a delivered ex-ship basis from the previous free-on-board terms, meaning Iran will cover all costs and risks of delivering the crude as well as handling the insurance, they said.
In July, all 17 tankers chartered to carry oil from Iran to China were operated by NITC, according to shipping data on Thomson Reuters Eikon. In June, eight of 19 vessels chartered were Chinese-operated.
Last month, those tankers loaded about 23.8 million barrels of crude oil and condensate destined for China, or about 767,000 barrels per day (bpd). In June, the loadings were 19.8 million barrels, or 660,000 bpd. In 2017, China imported an average of 623,000 bpd, according to customs data.
Sinopec declined to comment. A spokesperson for Nam Kwong Group, the parent of Zhenrong, declined to comment. NIOC did not respond to an email seeking comment.
An NITC spokesman said it would forward a request from Reuters for a comment to the country's Ministry of Culture and Islamic Guidance. It was not immediately clear how Iran would provide insurance for the Chinese oil purchases, worth some $1.5 billion a month. Insurance usually includes cover for the oil cargoes, third-party liability and pollution.
source: news.abs-cbn.com
RIYADH - Saudi Arabia said Wednesday it would further trim oil production and exports next month to reduce excess stockpiles that have weighed on crude prices, as concerns mount over US oversupply.
Saudi Aramco's crude output in March will be 100,000 barrels per day (bpd) below its February level while exports will be kept below seven million bpd, the energy ministry said.
"Saudi Arabia remains focused on working down excess oil inventories," a ministry spokesman said.
"Market volatility is a common concern for producers and consumers, and the kingdom is committed to mitigating this volatility and moderating its negative impacts."
Saudi Arabia, the world's top oil exporter, last month called for extending cooperation between OPEC and non-OPEC producers beyond 2018, after a deal to throttle output succeeded in shoring up prices.
Oil prices fell from above $110 per barrel in 2014 to around $30 at the start of 2016. But the market has seen a turnaround since and oil prices are now close to $60.
Saudi Energy Minister Khalid al-Falih said Wednesday that producers would rather persist with production cuts this year even if that brings about a slight supply shortage.
"If we have to overbalance the market a little bit, then so be it," he told reporters following an industry conference in Riyadh.
His comment comes a day after the International Energy Agency warned that surging oil production in the United States was putting the brakes on crude prices, undermining the kingdom's efforts.
Shale producers, particularly in the United States -- who are not party to the deal -- are ramping up output to cash in on rebounding crude prices.
But Falih and his Russian counterpart, Alexander Novak, rejected the idea of any "exit strategy" from production cuts.
Following their meeting in Riyadh, the ministers of the two major oil producers said they agreed on the need to cooperate to prop up prices amid a surge in US output.
"I am confident that our high degree of cooperation and coordination will continue to bring the desired results," Falih said.
source: news.abs-cbn.com
HOUSTON - Surging shale production is poised to push US oil output to more than 10 million barrels per day - toppling a record set in 1970 and crossing a threshold few could have imagined even a decade ago.
And this new record, expected within days, likely won't last long. The US government forecasts that the nation's production will climb to 11 million barrels a day by late 2019, a level that would rival Russia, the world's top producer.
The economic and political impacts of soaring US output are breathtaking, cutting the nation's oil imports by a fifth over a decade, providing high-paying jobs in rural communities and lowering consumer prices for domestic gasoline by 37 percent from a 2008 peak.
Fears of dire energy shortages that gripped the country in the 1970s have been replaced by a presidential policy of global "energy dominance."
"It has had incredibly positive impacts for the US economy, for the workforce and even our reduced carbon footprint" as shale natural gas has displaced coal at power plants, said John England, head of consultancy Deloitte's US energy and resources practice.
US energy exports now compete with Middle East oil for buyers in Asia. Daily trading volumes of US oil futures contracts have more doubled in the past decade, averaging more than 1.2 billion barrels per day in 2017, according to exchange operator CME Group.
The US oil price benchmark, West Texas Intermediate crude, is now watched closely worldwide by foreign customers of US gasoline, diesel and crude.
The question of whether the shale sector can continue at this pace remains an open debate. The rapid growth has stirred concerns that the industry is already peaking and that production forecasts are too optimistic.
The costs of labor and contracted services have recently risen sharply in the most active oilfields; drillable land prices have soared; and some shale financiers are calling on producers to focus on improving short-term returns rather than expanding drilling.
But US producers have already far outpaced expectations and overcome serious challenges, including the recent effort by the Organization of the Petroleum Exporting Countries (OPEC) to sink shale firms by flooding global markets with oil.
The cartel of oil-producing nations backed down in November 2016 and enacted production cuts amid pressure from their own members over low prices - which had plunged to below $27 earlier that year from more than $100 a barrel in 2014.
Shale producers won the price war through aggressive cost-cutting and rapid advances in drilling technology. Oil now trades above $64 a barrel, enough for many U.S. producers to finance both expanded drilling and dividends for shareholders.
BOOMING OIL EXPORTS
Efficiencies spurred by the battle with OPEC - including faster drilling, better well designs and more fracking - helped US firms produce enough oil to successfully lobby for the repeal of a ban on oil exports. In late 2015, Congress overturned the prohibition it had imposed following OPEC's 1973 embargo.
The United States now exports up to 1.7 million barrels per day of crude, and this year will have the capacity to export 3.8 billion cubic feet per day of natural gas. Terminals conceived for importing liquefied natural gas have now been overhauled to allow exports.
That export demand, along with surging production in remote locations such as West Texas and North Dakota, has led to a boom in US pipeline construction. Firms including Kinder Morgan and Enterprise Products Partners added 26,000 miles of liquids pipelines in the five years between 2012 and 2016, according to the Pipeline and Hazardous Materials Safety Administration. Several more multi-billion-dollar pipeline projects are on the drawing board.
US drillers say they can supply plenty more.
"We continue to see and drive improvements" in drilling speed and efficiency, said Mathias Schlecht, a technology vice president at Baker Hughes, General Electric Co's oilfield services business.
New wells can be drilled in as little as a week, he said. A few years ago, it could take up to a month.
TECHNOLOGY OPENS UP NEW FIELDS
The next phase of shale output growth depends on techniques to squeeze more oil from each well. Companies are now putting sensors on drill bits to more precisely access oil deposits, using artificial intelligence and remote operators to get the most out of equipment and trained engineers.
As expanded investments push more producers to add wells in less productive regions, technology will help make those plays more profitable, said Kate Richard, chief executive of Warwick Energy Group, which owns interests in more than 5,000 US wells.
In an interview, she estimated about a third of the money from private equity investments in shale will be used to wring more oil from overlooked regions.
Higher prices - up about $10 a barrel in the last two months - also may encourage the industry to work through a backlog of some 7,300 drilled-but-uncompleted shale wells that have built up because of crew and equipment shortages.
The higher prices have suppliers that provide hydraulic fracturing services, such as Keane Group and Liberty Oilfield Services, buying expensive new equipment in anticipation of more work.
U.S. fracking service revenues are expected to grow by 20 percent this year, approaching a record of $29 billion set in 2014, according to oilfield research firm Spears & Associates.
OIL MAJORS JOIN SHALE FRAY
The shale revolution initially upended the traditional industry hierarchy, making billionaires out of wildcatters such as Harold Hamm, who founded Continental Resources, and the late Aubrey McClendon of Chesapeake Energy.
Top US oil firms such as Exxon Mobil and Chevron a decade ago turned much of their focus to foreign fields, leaving smaller firms to develop US shale. Now they're back, buying shale companies, land and shifting more investments back home from overseas.
Exxon last year agreed to pay up to $6.6 billion for land in the Permian basin, the epicenter of US shale. Chevron this year plans to spend $4.3 billion on shale development.
The majors' shift is driving up costs for labor and drillable land in the region, another boost to wages and wealth in rural areas.
In the shale industry hub of Midland, Texas, unemployment has fallen to a mere 2.6 percent, said Willie Taylor, executive director of the Permian Basin Workforce Development Board, a group that helps firms find staff.
Companies are now offering signing bonuses to attract workers to West Texas. One oil company flies workers to Midland from Houston weekly to fill a local labor void, he said.
"It was an employer's market," he said. "Now it's more of a job seeker's market." (Additional reporting by Ernest Scheyder; Editing by Gary McWilliams and Brian Thevenot)
source: news.abs-cbn.com
SYDNEY - The euro stood within striking distance of its 2017 peak on an ailing US dollar on Tuesday, while Asian stocks began the new year close to their highest in a decade.
Sentiment was helped by news that North Korea had offered an olive branch to South Korea, with Kim Jong Un saying he was "open to dialogue" with Seoul.
Yet activity was sparse, with Japan on holiday and many investors on an extended break. MSCI's broadest index of Asia-Pacific shares outside Japan was a fraction firmer after rising by one-third in value last year to heights last visited in 2007.
Japan's Nikkei also had a bright 2017 with gains of 19 percent.
While Wall Street had ended Friday with modest losses, it was still a bumper year for US stocks.
The benchmark S&P 500 climbed 19.5 percent during 2017, while the Dow added 25.2 percent and the Nasdaq 28.2 percent, all the best yearly performances since 2013.
Still to come on Tuesday was the Caixin survey of Chinese manufacturing which is expected to show a slight slowdown as a punishing crackdown on air pollution and a cooling property market weigh on the world's second-largest economy.
The official Purchasing Managers' Index (PMI) released on Sunday dipped to 51.6 in December, from 51.8 in November, though the index of non-manufacturing rose to a three-month high of 55 from 54.8 in November.
In currency markets, the dollar remained out of favor having hit a three-month low against a basket of its peers on Friday. That brought its losses for 2017 to 9.8 percent, its worse performance since 2003.
Its pain was the euro's gain, with the single currency enjoying its strongest year against the dollar in 14 years. Early Tuesday, the euro was firm at $1.2013 and just off a three-month top of $1.2028.
Bulls were now eyeing the September peak of $1.2092, a break of which would take the euro to ground last trod in late 2014.
The euro had already broken major resistance on the yen to reach highs not seen since late 2015 at 135.51, leaving the dollar struggling at 112.74 yen.
A major hurdle for the dollar will be Wednesday's release of minutes from the Federal Reserve's December meeting when it raised interest rates. Two policymakers voted against the move amid doubts inflation would accelerate as hoped.
"With the market pricing in a 68 percent chance of a March hike and two hikes for 2018, there will close inspection to assess just how shaky their confidence is for any pick-up in inflationary trends," said Chris Weston, chief markets strategist at broker IG in Sydney.
"That said, the US dollar is underloved and oversold and it won't take much to promote a bout of profit-taking from the shorts."
The skid in the dollar, combined with strength in Chinese demand, has benefited commodities priced in the currency.
Copper stood tall at $7,251.50 a ton, having risen 31 percent in 2017 to a four-year top, while aluminium amassed gains of 34 percent.
Gold was 0.2 percent firmer at $1,305.62 an ounce, after advancing by 13 percent in 2017 for its best performance in 7 years.
Brent crude oil futures ended the year with a 17 percent rise, while US crude rose 12 percent on strong demand and declining global inventories.
Early Tuesday, Brent was steady at $66.62 a barrel while US crude eased 17 cents to $60.25.
source: news.abs-cbn.com
BAGHDAD - Saudi Oil Minister Khalid al-Falih made a high profile visit to Iraq on Saturday, calling for increased economic cooperation and praising existing coordination to boost crude oil prices.
In a speech at the opening of the Baghdad International Exhibition, Falih said cooperation between Iraq and Saudi Arabia contributed to “the improvement and stability we are seeing in the oil market”
Falih is the first Saudi official to make a public speech in Baghdad for decades. The two countries began taking steps towards detente in 2015 after 25 years of troubled relations starting with the Iraqi invasion of Kuwait in 1990.
Tension remained high after the 2003 U.S.-led invasion of Iraq, which toppled Saddam Hussein. The American occupation of Iraq empowered political parties representing Iraq’s Shi‘ite majority, close to Saudi Arabia’s regional rival Iran.
With a thaw in relations, Falih said a joint committee is “working on measures to speed up the establishment of an economic partnership and to reactivate cooperation and economic complementarity.”
Iraq is seeking economic benefits from closer ties with Riyadh while Saudi Arabia hopes a stronger relationship with Baghdad would help rollback Iran’s influence in the region.
Iraq lies on the fault line between Shi‘ite Muslim power Iran and the Sunni-ruled countries that are its regional arch-rivals, chief among them Saudi Arabia.
Iraqi Prime Minister Haider al-Abadi left Baghdad on Saturday for a visit to Saudi Arabia, his second to the kingdom this year, his office said in a statement.
His talks with Saudi officials will focus on efforts to rebuild Iraq after the war on Islamic State and fostering economic and trade cooperation, the statement said. Abadi will visit other Middle Eastern countries after the kingdom, it said.
“The best example of the importance of cooperation between our two countries is the improvement and stability trend seen in the oil market,” said Falih, to applause from the audience of Iraqi ministers, senior officials and businessmen.
Saudi Arabia and Iraq are respectively the biggest and second biggest producers of the Organization of the Petroleum Exporting Countries (OPEC).
The Iraqi oil ministry said Falih and his Iraqi counterpart, Jabar al-Luaibi, would cooperate in implementing decisions by oil exporting countries to curb global supply in order to lift crude prices.
OPEC, Russia and several other producers agreed a pact at the start of 2017 to cut production in order to boost oil prices. The cutbacks should continue until March 2018.
Falih called for increased economic cooperation between the two countries at all levels, saying Saudi Arabia is implementing measures to facilitate the flow of goods and services between the neighbors.
A Saudi commercial airplane, operated by Flynas, arrived in Baghdad on Wednesday for the first time in 27 years.
In August, the two countries said they planned to open the Arar land border crossing for trade for the first time since 1990.
source: news.abs-cbn.com
TOKYO - Asian shares flatlined on Friday but remained on track for a weekly gain, while crude oil prices pulled away from this week's 10-month lows.
MSCI's broadest index of Asia-Pacific shares outside Japan was nearly unchanged on the day, and was up 0.4 percent for the week.
Japan's Nikkei stock index added 0.1 percent, on track to log a rise of 1 percent for a week in which it touched its highest levels since August 2015.
"The actual macro situation in Japan is pretty good," said Ed Rogers, head of Rogers Investment Advisors in Tokyo, who noted the country's streak of five quarters of positive gross domestic product numbers.
He said the dollar remained bolstered against the yen by the Federal Reserve's move to hike interest rates last week and leave the door open for further monetary tightening later in the year.
"We're not seeing global inflation, but we think the Fed will continue to move. That stone's rolling down the hill," Rogers said.
The Philippine Stock Exchange Index was at 7,814.01 around midday.
Longer-term, that will support the dollar and underpin Japanese shares, he added.
The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.1 percent at 97.488 , but up 0.3 percent for the week.
The euro was up slightly on the day at $1.1158 but was down 0.3 percent for the week, while the dollar was steady against the yen at 111.33, up 0.4 percent for the week.
"We're getting close to the end of the month, and fundamentals aside, there will be people selling dollars, so it will be easy for the yen to strengthen next week," said Mitsuo Imaizumi, Tokyo-based chief foreign exchange strategist for Daiwa Securities.
"We also need to keep an eye on the healthcare debate in Washington, because political turmoil tends to undermine the dollar," he said.
U.S. Senate Republicans offered a bill on Thursday to overhaul Obamacare, the next phase in the party's long war against the 2010 law enacted by then-President Barack Obama, though it remained unclear if the bill has enough support to pass the Senate.
On Wall Street overnight, U.S. shares put in a mixed performance, though the S&P healthcare index rose 1 percent and hit its fifth consecutive record close following the release of the Senate Republicans' bill.
U.S. economic data on Thursday showed the number of Americans filing for unemployment benefits rose slightly last week, but remained at levels consistent with a tight labour market. Home prices also increased in April more than expected.
The Mexican peso added 0.2 percent after soaring 1 percent on Thursday as Mexico's central bank board raised interest rates, saying it wanted to anchor inflation expectations and take into account last week's move by the U.S. Federal Reserve to hike borrowing costs.
Crude oil futures pulled further away from this week's lows, though market sentiment remained fragile amid a global crude glut that has persisted despite OPEC-led output cuts.
Brent crude was up 0.3 percent at $45.36 a barrel. U.S. crude futures also rose 0.3 percent to $42.86 a barrel.
Spot gold edged up 0.2 percent to $1,251.35 an ounce, moving away from a five-week low touched earlier this week.
(Reporting by Lisa Twaronite; Editing by Eric Meijer and Richard Borsuk)
source: news.abs-cbn.com
