Oil edges lower, supply concerns check losses

International benchmark Brent crude hit a fresh five-month high in the previous session. (Reuters)
Updated 15 April 2019
0

Oil edges lower, supply concerns check losses

  • Renewed fighting in Libya could wipe out crude production in the country
  • Russia and OPEC may decide to boost production to fight for market share with the US

SYDNEY: Oil prices edged lower on Monday after international benchmark Brent hit a fresh five-month high in the previous session, but concerns over global supplies provided a floor to losses.
Brent crude oil futures were at $71.40 a barrel at 0015 GMT, down 15 cents, or 0.2 percent, from their last close. Brent closed up 1 percent on Friday when prices hit a high of $71.87 a barrel, the highest since Nov. 12.
US West Texas Intermediate (WTI) crude futures were at $63.60 per barrel, down 29 cents, or 0.5 percent, from their last settlement. WTI rose 0.5 percent on Friday.
The head of Libya’s National Oil Corp. warned on Friday that renewed fighting could wipe out crude production in the country.
“Supply side issues remained a concern for the market. Libyan rebel leader Khalifa Haftar moved forces closer to Tripoli,” ANZ Bank said in a research note.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies meet in June to decide whether to continue withholding supply. OPEC, Russia and other producers, an alliance known as OPEC+, are reducing output by 1.2 million bpd from Jan. 1 for six months.
OPEC’s de facto leader, Saudi Arabia, is considered keen to keep cutting, but sources within the group said it could raise output from July if disruptions continue elsewhere.
Russia’s Finance Minister Anton Siluanov was quoted by the TASS news agency as saying on Saturday that Russia and OPEC may decide to boost production to fight for market share with the United States but this would push oil prices as low as $40 per barrel.


Nissan to cut global production by 15 percent

Updated 48 min 25 sec ago
0

Nissan to cut global production by 15 percent

  • Nissan aims to produce about 4.6 million units in fiscal 2019
  • Nissan was not immediately available for comment

Nissan Motor Co. Ltd. will cut global production by about 15 percent for the current fiscal year ending March 2020, as it shifts away from the aggressive expansion campaign promoted by former Chairman Carlos Ghosn, the Nikkei newspaper reported on Friday.
That would be the steepest production cut in more than a decade by the Japanese automaker, as it battles weak sales in overseas markets including the United States where it plans to scale back sales operations, the Nikkei reported.
Nissan aims to produce about 4.6 million units in fiscal 2019, the Nikkei said, citing plans being communicated to the automaker’s suppliers. The move is likely to impact earnings and could cast a pall over Nissan’s alliance with French automaker Renault SA, the Nikkei reported, without elaborating.
Earlier this year, Nissan, which has been battling falling sales, lowered its operating profit forecast for the current fiscal year to 450 billion yen ($4 billion), 22 percent lower than a year earlier. It would be Nissan’s lowest profit since 2013.
Nissan was not immediately available for comment when contacted by Reuters.
Shares in Nissan, mired in a financial misconduct scandal involving Ghosn and the company itself, were trading down 1.2 percent early on Friday, versus a 0.6 percent rise in the broader market.