Oil prices ease on potential supply hikes by Russia

Supply outages in Libya pushed oil prices higher late last week, although prices still ended down for a second straight week. Above, the El Sharara oilfield in Libya in 2014. (Reuters)
Updated 16 July 2018

Oil prices ease on potential supply hikes by Russia

SEOUL: Oil prices fell on Monday as concerns about supply disruptions eased and Libyan ports resumed export activities, while traders eyed potential supply increases by Russia and other oil producers.
Brent crude futures were down 48 cents, or 0.6 percent, at $74.85 a barrel at 0302 GMT.
US West Texas Intermediate (WTI) crude was down 39 cents, or 0.6 percent, at $70.62 a barrel.
Supply outages in Libya and strike action in Norway and Iraq pushed oil prices higher late last week, although prices still ended down for a second straight week.
“Crude oil prices fell as fears of supply disruptions eased. News that Libya’s state oil producer had restarted output from a major oil field ignited the selloff earlier in the week,” ANZ Bank said in a note.
The market focus shifted toward possible supply increases, even as a Norwegian union for workers on offshore oil and gas drilling rigs stepped up a six-day strike.
“There are mixed supply signals and I think the (Brent) price is likely to be in the low-to-mid $70s range,” said Kim Kwang-rae, commodity analyst at Samsung Futures in Seoul.
“A summit between US President Trump and Russian President Putin is also being watched in case they say something about oil,” Kim said.
US President Donald Trump and Russian President Vladimir Putin are set to hold their first stand-alone meeting in Helsinki on Monday. Trump has been vocal about his dissatisfaction with higher oil prices, asking OPEC to lower prices.
Russia and other major oil producers may increase output further should supply shortages hit the global oil market, Russian Energy Minister Alexander Novak said on Friday.
Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA, said US-China trade tensions “should subside this week and could be a possible plus for oil prices,” but a possible sale of US oil reserves would hurt prices.
“With the Trump administration actively considering tapping into the nation’s Strategic Petroleum Reserve, it could weigh negatively,” Innes said.
The United States holds a reserve of about 660 million barrels, and the Trump administration was considering drawing on the country’s oil reserve, which would increase supply, according to a Bloomberg report.
Meanwhile, the number of rigs drilling in the United States was unchanged at 863 in the week to July 13 as the rate of the growth slowed amid a fall in crude prices.


HSBC France to leave its Champs Elysees headquarters

Updated 45 min 57 sec ago

HSBC France to leave its Champs Elysees headquarters

  • HSBC France has a project of moving its headquarters by 2020
  • The building would be fit for 1,200 employees working mostly in corporate and investment banking and wealth management

PARIS/LONDON: HSBC France said on Wednesday its teams will leave a prestigious headquarters on Paris' Champs Elysees avenue by 2020 in an emblematic move ahead of the planned sale of its retail business in the country.
The exit and planned sale, following a strategic review of the group's French retail activities, are part of a broader cost-cutting effort under interim Chief Executive Noel Quinn.
"HSBC France has a project of moving its headquarters by 2020 to 38 av Kleber, 500 meters away from its actual headquarters that was sold in 2010," the bank said in a statement.
The building would be fit for 1,200 employees working mostly in corporate and investment banking and wealth management.
Another 500 employees will be moved to HSBC's hub in La Defense business district which now houses 4,000 of the bank's employees and to branches close to the Champs Elysees building.
HSBC France sold its headquarters at 103 avenue Champs Elysees, and a building in front of it at 15 rue Vernet, to Qatari investors and has rented them since then.
The move is necessitated because the owner wants to regain control of the buildings and also because HSBC needs to save money, a source familiar with the matter said on Wednesday.
Office rents in Paris are rising to levels not seen since at least 2003, according to Immostat data, as vacancy rates are at record lows.
HSBC inherited the historic headquarters when it bought the French retail operations of Crédit Commercial de France (CCF) in 2000.
At the beginning of the 20th century, the building was a hotel where World War One spy and exotic dancer Mata Hari was arrested.
HSBC Holdings has hired U.S. investment bank Lazard Ltd to sell its French retail business, a source close to the matter told Reuters on Tuesday.
Quinn is expected to unveil the first details of his strategic overhaul of the bank when it reports third-quarter earnings on Oct. 28.
Quinn is auditioning for the full-time CEO job and insiders said he is under pressure to take decisive action after Chairman Mark Tucker indicated his predecessor John Flint had not moved quickly enough to turn around the lender's performance.