The pound has won some support from news Theresa May has agreed a draft Brexit deal, though she now faces a number of hurdles before passing it through parliament. (Photo: AFP/Oli Scarff) The pound enjoyed some support after Britain and the European Union said they had reached a draft Brexit deal, though observers were cautious as it faces a number of hurdles before being given the green light. Both main crude contracts plunged Tuesday - Brent lost 6.6 per cent and WTI 7.1 per cent - on oversupply fears just as demand falters in the face of the China-US trade war and easing economic growth. With prices now down more than a fifth from their four-year highs seen in early October, oil kingpin Saudi Arabia this week said it will cut output. The announcement fuelled an initial surge in the crude market before a Donald Trump tweet calling for it to keep prices low sent the commodity plunging. The selling continued on Tuesday and then Wednesday in Asia after OPEC trimmed its outlook for … [Read more...] about Energy firms dive with oil in Asia, most regional markets retreat
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European markets run out of steam on caution over North Korea summit
Logo of the London Stock Exchange Frankfurt, London and Paris had shot higher at the opening bell, following gains across Asia, but then ran out of steam. Wall Street also turned lower after a slightly stronger start. "The general reaction in the markets has been fairly muted," OANDA analyst Craig Erlam told AFP. "While the outcome of the summit is generally positive and gives reason for optimism, there may also be an element of scepticism from investors in regards to what denuclearisation means, the timescale and whether the deal will be sustained." As enthusiasm petered out, traders looked ahead to key policy meetings of the Federal Reserve and European Central Bank later this week. "European equities are mixed amid divergent economic news in the region and focus shifting to the upcoming central bank meetings," analysts at Charles Schwab said. Investors also remain concerned about a possible global trade war after the weekend's G7 gathering in Canada ended with Trump withdrawing … [Read more...] about European markets run out of steam on caution over North Korea summit
Trump abandons ‘defective’ Iran nuclear deal, will revive sanctions
President Donald Trump on Tuesday pulled the United States out of an international nuclear deal with Iran, raising the risk of conflict in the Middle East, upsetting European allies and casting uncertainty over global oil supplies. Trump said in a televised address from the White House that he would reimpose U.S. economic sanctions on Iran to undermine “a horrible one-sided deal that should have never, ever been made.” The 2015 agreement, worked out by the United States, five other world powers and Iran, lifted sanctions on Iran in exchange for Tehran limiting its nuclear program. The pact was designed to prevent Iran from obtaining a nuclear bomb. But Trump complains that the accord, the signature foreign policy achievement of his Democratic predecessor, Barack Obama, does not address Iran’s ballistic missile program, its nuclear activities beyond 2025 or its role in conflicts in Yemen and Syria. Trump’s decision intensifies the strain on the … [Read more...] about Trump abandons ‘defective’ Iran nuclear deal, will revive sanctions
Oil prices soar to highest level in years on Mideast tensions
File photo of section of an oil platform in the North Sea, around 160 kilometres east of Aberdeen, Scotland. (AFP PHOTO/POOL/ANDY BUCHANAN) World oil prices extended Wednesday's gains on the back of data showing a drop in US stockpiles - indicating improved demand - and expectations that a Russia-OPEC output cap deal will be kept in place. The market was also propelled after OPEC kingpin reportedly stated it wanted crude prices to top US$80 per barrel as it prepares for a gigantic listing of part of its state oil company. Tensions in the oil-rich Middle East also kept prices elevated. "WTI and Brent Crude have hit fresh 41-month highs after Saudi Arabia stated they would be happy for oil to reach US$80 or US$100," said market analyst David Madden at CMC Markets UK. As OPEC members met on Thursday in Saudi Arabia, the cartel's largest producer was seen as favouring strengthening the partnership with Russia that has successfully limited production to mop up the glut that had sent oil … [Read more...] about Oil prices soar to highest level in years on Mideast tensions
Oil prices ease after Syria air strikes
File photo of section of an oil platform in the North Sea, around 160 kilometres east of Aberdeen, Scotland. (AFP PHOTO/POOL/ANDY BUCHANAN) Russia holding back on any military riposte helped lift Wall Street, as did strong retail sales, but European equities closed lower as the region's key currencies strengthened against the dollar. "The limited and targeted strikes in Syria that provoked no serious response from Russia were a relief to markets that were pricing in escalation," said Jasper Lawler, head of research at LCG. The United States, Britain and France carried out attacks at the weekend on alleged chemical weapons facilities, in response to what they say was a toxic gas attack by the Russia-backed Assad regime a week before. "We can understand why the oil price has tended to fall rather than gain today in response to the West's military strike against Syria," Commerzbank commodities analysts said in a note. "After all, the tough response announced by Russia has failed to … [Read more...] about Oil prices ease after Syria air strikes