Oil, dollar and bond yields sharply higher after OPEC deal

TOKYO - Crude prices, the dollar and bond yields were sharply elevated early on Thursday after OPEC agreed to a deal to reduce output to clear a supply glut that has crunched oil prices and stoked global deflationary pressures.

The Organization of the Petroleum Exporting Countries on Wednesday agreed to its first output cut since 2008, with Saudi Arabia accepting "a big hit" on its production. Non-OPEC Russia will also join output reductions for the first time in 15 years to help OPEC prop up oil prices.

US crude oil soared more than 9 percent overnight to a one-month high just shy of $50.00 a barrel. The contracts were a fraction lower at $49.22 a barrel early on Thursday. Brent crude were just above $51.00 a barrel after rallying to a six-week peak of $52.37.

The jump in oil prices added to inflation expectations in the United States, which were already high on prospects that president-elect Donald Trump would enact reflationary policies funded by large fiscal stimulus.

As a result US Treasuries resumed their rout, with prices sliding and yields spiking, to send the dollar rallying against its peers. The yield on 30-year bonds, which are most sensitive to inflation eroding their value, climbed about 9 basis points to 2.39 percent overnight, taking it back towards 14-month peaks marked last week.

"The reflation trade continues to work in earnest, this time Trump has taken a back seat and OPEC and Russia have taken the initiative and lit the fuse under the oil price," wrote Chris Weston, chief market strategist at IG in Melbourne.

"The consensus was that we would get some sort of loose agreement from the collective that kept oil supported, but left the market asking many more questions. What we have seen however has been real meat on the bone."

The dollar touched a 9-1/2-month high of 114.830 yen, adding to gains made overnight when it surged 1.8 percent. The euro was steady at $1.0596 after shedding 0.6 percent the previous day.

The dollar index was firm at 101.51 after rallying overnight from a low of 100.84.

The Australian dollar, sensitive to changes in commodity prices and risk sentiment, was up 0.2 percent at $0.7396 after losing more than 1 percent the previous day.

In Asian equities, Australian stocks were up 0.7 percent and Japan's Nikkei gained more than 1 percent on a weaker yen to hit an 11-month peak

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 percent.

The region's stocks failed to draw much incentive from Wall Street, where shares ended mostly lower on Wednesday as drops in utilities and technology offset energy's surge.

Spot gold was firm at $1,172.46 an ounce after sliding 1.3 percent overnight to a 10-month low of $1,170.35 on the dollar's oil-induced surge.

source: news.abs-cbn.com

Dollar nurses losses as investors look to OPEC, US data

TOKYO - The dollar nursed losses on Tuesday as US Treasury yields came off of their multi-month highs, while volatile crude oil prices ahead of this week's oil producers' meeting kept investors' risk appetite in check.

Since the victory of US President-elect Donald Trump on Nov. 8, the dollar has soared in line with yields on US Treasury bonds, which have sold off on expectations that the Trump administration will embark on stimulus policies and boost inflation.

These expectations helped push up the benchmark 10-year Treasury yield to a 16-month high last week.

The dollar stood at 111.96 yen, off its overnight low of 111.35 but well below an 8-month high of 113.90 touched on Friday.

"The dollar has been pulling back now in response to volatile oil prices, after rising on expectations of what Trump will do," said Mitsuo Imaizumi, chief currency strategist at Daiwa Securities in Tokyo.

"Against the yen, it could even fall back to the 110 level, depending on what oil does, and we also have US data this week - although right now, the employment figures seem like a long time away," he said.

Crude oil prices have been on a roller coaster ride this week, as the market reacted to the developments on whether major producers would be able to reach an agreement on the contentious issue of output cuts at their meeting on Wednesday.

Later on Tuesday, investors will look to US third-quarter gross domestic product data as well as readings on consumer confidence and consumption for trading cues. They will be followed by the November employment report on Friday.

Data released early on Tuesday showed that Japan's unemployment rate in October held steady as the availability of jobs improved and household spending fell at a slower pace, a tentative sign that a robust labor market is lending support to domestic demand.

Political risks kept the euro in check, though it still managed to post a nearly two-week high of $1.0686 overnight. It last traded at $1.0615, flat from late Monday's North American levels.

Worries about Italy's banking system have been mounting ahead of a Dec. 4 referendum on constitutional reform, which could unseat the government of Prime Minister Matteo Renzi.

More than 8 billion euros of legal claims against Monte dei Paschi di Siena, its weakening liquidity and the potential for more bad loan writedowns are among risks the bank says could scupper its 5-billion-euro rescue plan.

The dollar index, which tracks the greenback against a basket of six major rivals, scaled a nearly 14-year peak of 102.05 on Thursday before profit-taking and oil jitters brought it back down to earth. It was last at 101.160.

source: news.abs-cbn.com

Asian shares tread cautiously, crude oil slips

TOKYO - Asian shares edged slightly lower in early Asian trade on Tuesday, as a downturn in crude oil curbed the enthusiasm from fresh record highs on Wall Street.

MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.1 percent, though it was still within sight of a nine-month high touched last week. The Dow Jones industrial average and the S&P 500 both logged fresh record highs.

Japan's Nikkei stock index gained 0.6 percent, as markets reopened after a Japanese public holiday on Monday and caught up to a weaker yen.

A failed coup in Turkey had dented risk sentiment and bolstered the perceived safe-haven yen before it ran its course. On Monday, Turkey purged its police force after rounding up thousands of soldiers and called for the United States to hand over a cleric that the Turkish government accuses of being behind the takeover attempt.

Improved risk sentiment helped the dollar climb to three-week highs against the yen. It was last down slightly on the day at 106.13 yen, after rising as high as 106.33 earlier in the session, its highest since June 24.

The euro edged down 0.1 percent against the dollar to
$1.1069.

The European Central Bank will hold a regular policy meeting on Thursday, its last one before an eight-week summer break. It is not expected to take any additional easing steps.

Instead, ECB President Mario Draghi is likely to appeal to governments to do more to bolster the euro zone economy in the wake of Britain's vote last month to exit the European Union.

"We expect the ECB to steer clear from any policy action," strategists at Rabobank said.

"Gauging the Brexit impact will require more time and the September meeting would appear a more logical candidate," they said, adding that questions in the post-meeting news conference are likely to focus on what options the ECB still has to ease or extend its current monetary policy.

The dollar index, which gauges the greenback against a basket of currencies, was slightly higher at 96.571.

Pressure remained on crude oil prices after they settled down more than 1 percent on Monday after rising stockpiles of crude and refined fuel intensified fears of another major supply glut. O/R
Brent crude LCOc1 was slightly lower in early trading at $46.95 a barrel, after shedding 1.4 percent on Monday. U.S. crude CLc1 was down 0.1 percent at $45.20, after dropping 1.6 percent overnight.

Spot gold was slightly down at $1,328.50 an ounce, after dropping as much as 1 percent on Monday.

source: www.abs-cbnnews.com

Asian shares, oil skid as global growth concerns dominate

TOKYO - Asian shares retreated and oil prices resumed their descent on Tuesday as investors took profits on rebounds over the last two days as fears of a global economic slowdown showed no sign of abating.

Japan's Nikkei fell 1.8 percent by midday while Hong Kong's Hang Seng Index fell 1.5 percent. Both fell more than 2 percent at one point.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.9 percent after two days of gains since late last week.

"Wherever you look - China, oil and the U.S., there is no clear evidence of improvement in economic fundamentals. So in the near term, it is hard to expect risk asset prices to gain further after a spate of short-covering," said Tatsushi Maeno, managing director at PineBridge Investments.

Crude oil prices have failed to extend their rebound that had started last week, falling around 7 percent so far this week. News that Iraq's output reached a record last month deepened concerns of oversupply.

Oil prices have fallen more than 75 percent from their 2012 peaks as global output was boosted by U.S. shale oil production and demand growth turned tepid, partially caused by the Chinese economy's slowing growth. The massive price fall is putting huge pressure on profitability of energy firms worldwide, which are in turn slashing investment and cutting jobs.

The U.S. S&P fell 1.6 percent to 1,877.08, led by a 4.5 percent drop in the energy sector.

Brent crude futures LCOc1, the global benchmark, dropped to $30 a barrel, falling 1.3 percent in Tuesday Asian trade, or 6.5 percent so far this week.

U.S. crude futures fell even more to $29.83 per barrel CLc1, down 7.4 percent from late last week.

Countering selling pressure for now are vague hopes that the U.S. Federal Reserve may tone done its bias towards further policy tightening and that the Bank of Japan may expand its stimulus. Both will hold policy reviews this week.

The U.S. Federal Reserve's policy statement is due on Wednesday followed by the Bank of Japan's announcement on Friday.

Fed officials have so far stuck to the line that the bank would be ready to raise interest rates four times this year despite market volatility as the U.S. economic expansion continues.

Investors have difficulty believing such a policy tightening is possible under the current unstable economic and market conditions, with federal fund rate futures pricing in just over one rate hike this year.

Some investors hope a more dovish tone out of the Fed would help to soothe market sentiment, given that the perception gap between markets and policymakers has been a major source of anxiety.

Speculation that the Bank of Japan could step up its stimulus this week is also rising, although many market players still think the BOJ will hold fire for now.

The rebound in oil and risk assets late last week was indeed spurred by comments from European Central Bank President Mario Draghi indicating another stimulus in March.

"The fall in markets is stemming from worries about China, oil and so on. And now people think policy makers will try to stop that with monetary easing," said Koichi Yoshikawa, executive director of finance at Standard Chartered Bank.

"The problem is that monetary easing has succeeded in supporting financial market but not necessarily the real economy," he added.

In the currencies, resurgent risk aversion helped to lift the yen to 118.18 to the dollar from its two-week low of 118.88 hit on Friday.

The euro also gained against the dollar to $1.0845, 0.5 percent above late last week and having recovered about half the losses seen on Thursday when European Central Bank President TOKYO - Asian shares retreated and oil prices resumed their descent on Tuesday as investors took profits on rebounds over the last two days as fears of a global economic slowdown showed no sign of abating.

Japan's Nikkei fell 1.8 percent by midday while Hong Kong's Hang Seng Index fell 1.5 percent. Both fell more than 2 percent at one point.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.9 percent after two days of gains since late last week.

"Wherever you look - China, oil and the U.S., there is no clear evidence of improvement in economic fundamentals. So in the near term, it is hard to expect risk asset prices to gain further after a spate of short-covering," said Tatsushi Maeno, managing director at PineBridge Investments.

Crude oil prices have failed to extend their rebound that had started last week, falling around 7 percent so far this week. News that Iraq's output reached a record last month deepened concerns of oversupply.

Oil prices have fallen more than 75 percent from their 2012 peaks as global output was boosted by U.S. shale oil production and demand growth turned tepid, partially caused by the Chinese economy's slowing growth. The massive price fall is putting huge pressure on profitability of energy firms worldwide, which are in turn slashing investment and cutting jobs.

The U.S. S&P fell 1.6 percent to 1,877.08, led by a 4.5 percent drop in the energy sector.

Brent crude futures LCOc1, the global benchmark, dropped to $30 a barrel, falling 1.3 percent in Tuesday Asian trade, or 6.5 percent so far this week.

U.S. crude futures fell even more to $29.83 per barrel CLc1, down 7.4 percent from late last week.

Countering selling pressure for now are vague hopes that the U.S. Federal Reserve may tone done its bias towards further policy tightening and that the Bank of Japan may expand its stimulus. Both will hold policy reviews this week.

The U.S. Federal Reserve's policy statement is due on Wednesday followed by the Bank of Japan's announcement on Friday.

Fed officials have so far stuck to the line that the bank would be ready to raise interest rates four times this year despite market volatility as the U.S. economic expansion continues.

Investors have difficulty believing such a policy tightening is possible under the current unstable economic and market conditions, with federal fund rate futures pricing in just over one rate hike this year.

Some investors hope a more dovish tone out of the Fed would help to soothe market sentiment, given that the perception gap between markets and policymakers has been a major source of anxiety.

Speculation that the Bank of Japan could step up its stimulus this week is also rising, although many market players still think the BOJ will hold fire for now.

The rebound in oil and risk assets late last week was indeed spurred by comments from European Central Bank President Mario Draghi indicating another stimulus in March.

"The fall in markets is stemming from worries about China, oil and so on. And now people think policy makers will try to stop that with monetary easing," said Koichi Yoshikawa, executive director of finance at Standard Chartered Bank.

"The problem is that monetary easing has succeeded in supporting financial market but not necessarily the real economy," he added.

In the currencies, resurgent risk aversion helped to lift the yen to 118.18 to the dollar from its two-week low of 118.88 hit on Friday.

The euro also gained against the dollar to $1.0845, 0.5 percent above late last week and having recovered about half the losses seen on Thursday when European Central Bank President Mario Draghi indicated more stimulus in March.

source: www.abs-cbnnews.comindicated more stimulus in March.

source: www.abs-cbnnews.com

Oil's slide below USD30 sends shockwaves far and wide

NEW YORK - U.S. oil stumbled below $30 for the first time in 12 years to levels that threaten the survival of many U.S. shale firms, spur more belt-tightening by oil majors and spell more pain for crude-producing nations and regions.

A seven-day losing streak fueled by concerns about a continued supply glut and fragile demand from China, the world's No. 2 consumer, wiped out almost a fifth of crude prices CLc1 this year and 70 percent since mid-2014.

Traders have all but given up attempting to predict where the new-year rout will end, with momentum-driven dealing and overwhelmingly bearish sentiment engulfing the market. Some analysts warned of $20 a barrel; Standard Chartered said fund selling may not relent until it reaches $10.

And more of the world's biggest energy companies are conceding that it may be many years before prices recover. On Tuesday, U.S. crude futures traded below $50 through 2021.

British oil and gas giant BP Plc said on Tuesday it would slash 5 percent of its workforce in the face of the continued slump while Brazil's state oil firm Petrobras cut its investment plan for the third time in six months.

Royal Dutch Shell Plc and Exxon Mobil Corp., meanwhile, have seen their stock decline by 11 and 4 percent respectively.

The latest cuts add to the hundreds of thousands of job lost and billions of dollars spending cuts throughout crude's 18-month slide from levels above $100 a barrel in the summer of 2014, a collapse that has run far longer and deeper than originally expected, reaching crisis point for some.

For Russia, which relies on energy for about half its budget revenues and 40 percent of exports, $30-a-barrel oil could wipe out in just over a year the nation's rainy day funds amassed during bull energy markets and blow a hole in its budget.

Even Saudi Arabia, whose policy of maintaining output to defend its market share even as prices slide has been blamed, together with the resilience of U.S. shale producers, for the persistence of the global supply glut, is feeling the squeeze.

In its 2016 budget unveiled late last month, Riyadh announced a series of spending cuts and reduction in subsidies as oil revenues shrink.

But with major U.S. energy lender Wells Fargo estimating that sustained prices below $40 per barrel, let alone $30, are too low for U.S. shale producers to survive in the longer run, the stakes are exceptionally high for the young industry that turned the United States into a leading oil and gas producer.

The rout has already pushed dozens of small firms into bankruptcy or turned them into "zombies" firms that barely manage to pay their bills and service debts, but do not earn enough to ensure sustained production and revenues ahead.

Stocks of U.S. energy companies lost more than 9 percent in the past nine trading days and the sector is expected to report a 70 percent annual drop in earnings per share for the fourth quarter, according to Thomson Reuters data.

There are few signs suggesting any near-term relief. The U.S. Energy Information Administration predicted on Tuesday that already heavily swollen global oil stockpiles would continue rising until the second half of next year.

NO BOTTOM

The prospect of a protracted slump has fueled expectations of a flurry of asset sales deals that could be possibly financed by private equity or hedge fund investors and law firms and banks have been beefing up their restructuring teams.

The latest slide, however, quashed hopes that the market may have already found its bottom and private equity investors are expected to hold off with buying any assets with action expected to shift to bankruptcy courts.

The U.S. West Texas Intermediate crude (WTI) CLc1 benchmark briefly touched a low of $29.93, which was last seen in December 2003.

“With WTI now trading below $30, people are getting their minds wrapped around the lower-for-longer price scenario and … management teams and sponsors are starting to become resigned to the likelihood of an in-court solution,” said Matthew Hart, who leads the restructuring practice at Intrepid Partners.

The latest plunge has also deepened the gap between U.S. states such as Alaska, Oklahoma, North Dakota, Louisiana and New Mexico, which depend on production taxes to fund education and health care and the rest of the country, which has benefited from low gasoline prices.

SAVINGS AND SUVS

There are winners of the oil rout too.

Cheap gasoline and low heating costs have produced a windfall for the majority of U.S. consumers, which with a delay begins to show up in discretionary spending and savings.

The U.S. auto industry is also racking up record sales and profits, largely due to the resurgent popularity of trucks and sport utility vehicles fueled by gasoline prices at multiyear lows.

And some investors are still looking at the latest slide as a potential opportunity.

“It’s a wild cycle, but it’s so hard to predict where the bottom is,” said Gary Bradshaw, portfolio manager at the $1.9 billion Hodges Small Cap Fund. He says his firm has been buying small-cap natural gas firms in anticipation that the stocks will rebound soon, particularly if global events cause a quick tightening in oil supply.

“I think we’ll have a heck of a snap-back rally and crude will eventually, my guess, rebound to around $55 a barrel," he said. "We’re buying stocks thinking they’re awful close to getting washed out.”

source: www.abs-cbnnews.com

When will oil prices stop falling?

SINGAPORE - Oil prices will continue to drop as high production meets weak demand and a strong U.S. dollar pressures crude, and markets will only pick up once major manufacturing economies particularly in Asia feel the benefit of cheaper energy.

Oil prices LCOc1 CLc1 have halved since last June to near 6-year lows as economic growth stutters, and analysts say that a building supply glut means prices are set to fall further before any rebound. O/R

On the supply side, downward pressure on oil has come from a boom in U.S. shale oil output and, more recently, by the Organization of the Petroleum Exporting Countries' (OPEC) decision not to cut output in support of prices, and instead try to defend market share against North American shale by offering discounts.

"The risks to oil prices remain skewed to the downside in the near term," ANZ Bank said on Wednesday.

"(US) shale producers won't start feeling the pinch for another six months. In addition, there is the prospect of further supply increases from highly stressed OPEC members such as Libya, Nigeria and Venezuela, which could place further downward pressure on prices," the bank added.

There's also more oil in the system as slowing economies are using less and as energy efficiency improves.

In Asia, Japan is battling recession, while in China, the commodity boom driver in recent years, demand is slowing as the world's second-biggest economy shifts from energy-intensive construction to consumer-fuelled growth.

Citi this week predicted China's crude oil imports would grow more slowly this year, adding that "anyone hoping for China to drive a rebound in oil prices is likely to be disappointed."

Adding to the slack in Asia is that Europe has yet to recover from its post-credit crunch crisis in 2008-09.

Another drag on oil comes from the dollar. With the U.S. Federal Reserve expected to raise interest rates this year for the first time since 2006, supported by healthy growth, the dollar is likely to keep strengthening, putting more pressure on oil markets as European and Asian currencies fall.

BOON FOR CONSUMERS

While the immediate outlook for oil remains weak, analysts say cheaper fuel costs for households and businesses should at some point support demand, especially in manufacturing-led economies.

"The collapse in oil prices looks set to wipe out the Gulf's external surpluses next year, leaving China and the euro-zone as the world's major surplus economies," Capital Economics said in December.

Citi noted that lower oil prices could save China more than 1 percent of GDP on imports, helping boost consumption.

In Japan, cheaper fuel costs will not only benefit large industry, but also help reduce an enormous deficit, triggered in part by soaring fuel imports following the shutdown of its nuclear power plants after the 2011 Fukushima reactor meltdown. (Full Story)

For India, Asia's No.3 economy, lower oil imports will also be a boon. "Growth prospects have improved ... as lower oil prices will allow households and businesses to increase spending and the central bank to loosen monetary policy," research firm PIRA Energy said.

Analysts say oil prices will bottom out and start to rise again - part of the so-called commodity supercycle - once some producers scale back production to adjust to falling prices and major manufacturing centres begin to feel the economic benefits of cheaper energy and again start using more.

source: www.abs-cbnnews.com

Saudis block OPEC output cut, sending oil price plunging

VIENNA - Saudi Arabia blocked calls on Thursday from poorer members of the OPEC oil exporter group for production cuts to arrest a slide in global prices, sending benchmark crude plunging to a fresh four-year low.

Brent oil fell more than $6 to $71.25 a barrel after OPEC ministers meeting in Vienna left the group's output ceiling unchanged despite huge global oversupply, marking a major shift away from its long-standing policy of defending prices.

This outcome set the stage for a battle for market share between OPEC and non-OPEC countries, as a boom in U.S. shale oil production and weaker economic growth in China and Europe have already sent crude prices down by about a third since June.

"It was a great decision," Saudi Oil Minister Ali al-Naimi said as he emerged smiling after around five hours of talks.

OPEC said in a statement that members had agreed to roll over the ceiling of 30 million barrels per day, at least 1 million above OPEC's own estimates of demand for its oil next year.

"It is a new world for OPEC because they simply cannot manage the market anymore. It is now the market's turn to dictate prices and they will certainly go lower," said Dr. Gary Ross, chief executive of PIRA Energy Group.

The wealthy Gulf states have made clear they are ready to ride out the weak prices that have hurt the likes of Venezuela and Iran - OPEC members which face big budget pressures, but cannot afford to make cuts themselves. Venezuela and Algeria had calling for output cuts of as much as 2 million bpd.

Venezuelan Foreign Minister Rafael Ramirez said he accepted the decision as a collective one and hoped that lower prices would help drive some of the higher-cost U.S. shale oil production out of the market.

"In the market, some producers are too expensive," he said.

The OPEC statement made no mention of any need for members to stop overproducing, nor of any extraordinary meeting to reconsider the ceiling before a regular session next June.

BATTLE OVER MARKET SHARE

The Organization of the Petroleum Exporting Countries accounts for a third of global oil output.

Gulf producers could withstand for some time a battle over market share that would drive down prices further, thanks to their large foreign-currency reserves.

Members without such a cushion would find it much more difficult, as would a number of producers outside the group. Russia's rouble, which has been sliding for much of this year, extended losses on Thursday to trade more than 2 percent lower than the previous close against the U.S. dollar.

Russia is already suffering from Western sanctions over its actions in Ukraine and needs oil prices of $100 per barrel to balance its budget.

A price war might make some future U.S. shale oil projects uncompetitive due to high production costs, easing competitive pressures on OPEC in the longer term.

"Why would Saudi cut production in the current environment? Why would they want to support Iran, Russia or U.S. shale producers? So they must have decided: let the market establish the price. Once the market goes to a new equilibrium, prices will go higher," PIRA Energy's Ross said.

Kuwaiti Oil Minister Ali Saleh al-Omair said OPEC would have to accept any market price of oil, whether it were $60, $80 or $100 a barrel. Iraq's oil minister, Adel Abdel Mehdi, said he saw a floor at $65-70 per barrel.

"We interpret this as Saudi Arabia selling the idea that oil prices in the short term need to go lower, with a floor set at $60 per barrel, in order to have more stability in years ahead at $80 plus," said Olivier Jakob from Petromatrix consultancy.

"In other words, it should be in the interest of OPEC to live with lower prices for a little while in order to slow down development projects in the United States."

source: www.abs-cbnnews.com

Oil prices gain ahead of OPEC meet

WASHINGTON - Global crude prices pushed higher Monday ahead of OPEC's December meeting on the oil market, as Saudi Arabia suggested no change to the cartel's output ceiling.

Firm economic data from China, Europe and the United States helped strengthen prices, analysts said

New York's main contract, West Texas Intermediate (WTI) for delivery in January, gained $1.10 to $93.82 a barrel.

Brent North Sea crude for January added $1.76 to $111.45 in Lond trade..

"Prices have been supported by better than expected Chinese manufacturing PMI figures," said Kash Kamal, research analyst at London-based brokerage Sucden Financial.

Official data Sunday showed China's manufacturing growth in November maintained its strong pace from the previous month to stay at a 19-month high.

Meanwhile purchasing manager indices for the manufacturing sectors in Europe and the United States also rose, supporting a slightly more bullish outlook for the market.

Ahead of Wednesday's meeting of the Organization of Petroleum Exporting Countries, Saudi Arabia, the world's leading exports, said it is satisfied with current crude prices as well as global supply and demand levels

"The market is in the best position it can be," Saudi Oil Minister Ali al-Naimi told reporters in Vienna.

"Demand is great, economic growth is improving," he said.

"Supply and demand are in equilibrium, inventories are in a good position," he added. "We are at the right price right now."

OPEC is seen sitting tight on its output ceiling of 30 million barrels per day.

The changing situations of two OPEC members continues to shape the market. Libyan output has been slashed amid rising unrest. Meanwhile, Iran could sharply increase exports next year if it reaches a full agreement with Western powers on curbing its nuclear program that would allow the lifting of sanctions.

source: www.abs-cbnnews.com

Oil gains modestly

Crude oil prices climbed in New York Monday, adding 67 cents to $93.22 per barrel.

Gasoline added 0.2 cents to $2.755 a gallon. Home heating oil added 6.04 cents to $3.0696 a gallon.

The price of natural gas added 5.9 cents to $3.385 per million British thermal units.

At the pump, AAA reported the national average price for regular unleaded gasoline dropped to $3.304 per gallon from Sunday's $3.307.

source: upi.com