Brent oil gains $1 to claw back some losses

Libya’s announcement that four export terminals including Ras Lanuf, above, were being reopened was one of the catalysts for a correction, analysts say. (Reuters)
Updated 12 July 2018
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Brent oil gains $1 to claw back some losses

TOKYO: Brent crude rose more than $1 on Thursday, recouping some ground after its biggest one-day drop in two years in the previous session on news that Libya would resume oil exports and US-China trade tensions.
Brent crude rose $1.31, or 1.8 percent, to $74.71 by 0242 GMT after slumping 6.9 percent on Wednesday.
US West Texas Intermediate (WTI) added 42 cents, or 0.6 percent, to $70.80, after falling 5 percent the previous session.
“Markets in Asia are a lot more settled today,” said Greg McKenna, chief market strategist at AxiTrader in Sydney.
“Moves, the like of which we saw in Brent and to a lesser extent WTI, last night are often followed by some sort of bounce the following day or session,” he said.
The announcement by Libya’s National Oil Corp. that four export terminals were being reopened, ending a standoff that had shut down most of Libya’s oil output, was one of the catalysts for a correction, analysts said.
The reopening allows the return of as much as 850,000 barrels per day of crude into international markets, while an escalating US-China trade row has raised concerns about demand.
Oil had some supportive news late on Wednesday that US crude oil stocks fell by nearly 13 million barrels last week, the most in nearly two years, dropping overall crude stocks to their lowest point since February 2015.
The decline in overall inventories was partially due to a fall-off in stocks at the Cushing, Oklahoma, delivery hub for US crude futures, which were down by 2.1 million barrels.
“For WTI there is tightness at Cushing, which will be supportive over July and August,” said Virendra Chauhan, oil analyst at Energy Aspects in Singapore.
Supply to the US market has also been squeezed by the loss of some Canadian oil production.


Boeing kickstarts Farnborough Airshow with order for jets worth $4.7bn

Updated 16 July 2018
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Boeing kickstarts Farnborough Airshow with order for jets worth $4.7bn

BENGALURU: Boeing Co. said on Monday it won an order for 14 freight aircraft for a value of $4.7 billion, firing the opening salvo against rival Airbus in a contest for business on day one of the Farnborough Airshow.
Logistics group DHL placed the order for the 777 freighters and acquired purchase rights for seven more freighters, the US planemaker said.
Boeing and Airbus are expected to make several announcements on the first day of the July 16-22 event, as they seek to bolster their already bulging order books.
The latest order follows Boeing’s deal with FedEx Corp. unit FedEx Express in June for 24 medium and large freighters.
While global trade tensions are escalating, the industry is counting on e-commerce continuing to soar, with more people buying products online for quick delivery.
Air freight demand is expected to increase 4 percent this year, according to the International Air Transport Association (IATA).
Last year was the best for cargo since 2010, with traffic growth more than doubling to 9 percent, three times the growth in capacity.
Boeing’s latest order will double the size of DHL’s global 777 fleet, the companies said. The delivery of the first four planes is expected to be completed in 2019, DHL said in a separate statement.
The Farnborough Airshow is the industry’s biggest event this year. It alternates with the Paris Airshow and, collectively, they account for over a quarter of industry order intake each year.