Oil prices rose for a second day on Wednesday, recouping some losses after a five-day rout on talk that OPEC could extend oil output cuts if a new coronavirus hurts demand, while data showing a decline in U.S. stockpiles helped steady prices.
Brent crude rose 35 cents, or 0.6%, to $59.86 per barrel. U.S. West Texas Intermediate crude was up 20 cents, or 0.4%, at $53.67 a barrel.
Financial markets that have been hit by the spread of the virus out of China are trying to assess the economic fallout, with the death toll rising to 132 and airlines reducing flights to China.
The Organization of Petroleum Exporting Countries wants to extend oil production cuts until at least June from March, and may deepen the reductions, should demand for oil in China be significantly reduced by the spread of the virus
S. equity futures climbed along with Europe stocks as a slew of corporate news and the Federal Reserve rates decision later Wednesday gave investors a fresh focus even as concerns linger over the deadly coronavirus. Treasuries gained with most European bonds.
Contracts on the S&P 500 index advanced after earnings beats from some of America’s biggest companies. Apple Inc. set the tone Tuesday, with sales forecasts topping estimates amid “uncertainty” caused by the virus outbreak that’s cutting retail traffic.
The Government will be providing $200 million to assist sugar-cane farmers in St. Thomas, who have been negatively affected by the closure of the Golden Grove Sugar Factory. The Golden Grove Sugar Factory was closed in 2019 by manufacturing company Seprod, which took over the business in 2009 with the hope of reviving the ailing sugar operation.
Minister of Industry, Commerce, Agriculture and Fisheries, Hon. Audley Shaw, made the announcement during a meeting with the farmers, at the factory located in Duckenfield on Friday (January 24).
Minister Shaw noted that the funds are to be used for the planting of new crops, given that the demand for sugar cane has decreased.
He advised them to present their plans to the Rural Agricultural Development Authority (RADA), which will share those plans with the Ministry.
Minister of Science, Energy and Technology, Hon. Fayval Williams, says strategic investment is needed to advance Electric Mobility (e-mobility) in Jamaica as a path towards sustained economic growth. E-mobility refers to the development of electric-powered vehicles.
Minister Williams said that e-mobility is a national priority, as Government seeks to redefine the energy landscape “in order to achieve energy security, energy efficiency, energy resilience and greater energy investment in the country.”
Facing economic collapse and painful sanctions, the socialist government of Venezuelan President Nicolas Maduro has proposed giving majority shares and control of its oil industry to big international corporations, a move that would forsake decades of state monopoly.
Maduro’s representatives have held talks with Russia’s Rosneft PJSC, Repsol SA of Spain and Italy’s Eni SpA. The idea is to allow them to take over government-controlled oil properties and restructure some debt of state oil company Petroleos de Venezuela SA in exchange for assets
The proposal, which could offer a balm to the country’s disintegrating oil industry, is in early stages and faces major obstacles. Venezuelan laws would have to be changed, there is disagreement over how to finance the operations, and Washington’s sanctions bar any U.S. companies from doing business with the Maduro regime without a waiver.
Latin American assets slid on Monday as investors fretted over the potential economic damage of China's coronavirus outbreak, with Brazil's real touching its weakest level in nearly two months.
Risk assets around the globe were sold off, with investors fleeing to safe havens amid widespread disruptions in the world's second-largest economy. Risk-exposed emerging markets bore the brunt of the selling.
markets were locking in profits after rallying in the fourth quarter of 2019. Optimism over a Sino-U.S. trade truce, as well as an expected recovery in global growth had pushed up risk assets through the quarter.
The U.S. Treasury yield curve, measured by the gap between yields on three-month and 10-year bonds, briefly inverted on Tuesday for the first time since October as investors worried about the economic impact from a virus outbreak in China.
An inverted curve, when longer-dated yields fall below shorter-maturity ones, has been a fairly reliable predictor of U.S. economic recessions in the past.
The death toll from the coronavirus outbreak in China has risen to more than 100 and the virus has spread to more than 10 countries, including France, Japan and the United States. That has rattled world markets, fuelling concerns about the impact on a world economy hit last year by a trade war between the United States and China.
Investors in turn have rushed into safe-haven U.S. Treasuries, with 10-year yields falling on Tuesday to 1.57% US10YT=RR, their lowest since early October.
Oil dropped to its lowest level since October on Monday, as fears over a potential slowdown in crude demand, sparked by the coronavirus outbreak, continued to pressure prices.
A slowdown in China’s economy would hit oil demand since the nation is the world’s largest crude oil importer —importing a record 10.12 million barrels per day in 2019 and the world’s second-largest oil consumer, according to data from the General Administration of Customs.
S. West Texas Intermediate crude fell 1.9%, or $1.05, to settle at $53.14 per barrel, for the fifth straight session of losses, and the lowest closing price since Oct. 15. At its low, WTI dipped more than 3% to hit $52.13, a price not seen since Oct. 10. The contract is coming off its third straight week of losses and worst week since July, and is now trading in bear market territory after falling more than 20% from its recent April high of $66.60.
International benchmark Brent crude fell 2.5%, or $1.53, to $59.16. It’s also coming off its third straight week of losses, and its worst week since Dec. 2018.
GraceKennedy Limited (GK) has advised that the Company has acquired 15% interest in Key Insurance Company Limited (KEY).
GK further state that it intends to make a cash offer to purchase 100% of the issued share capital of Key at a price of $2.01 per share. The Offer will open for acceptance at 9:00 am on January 27, 2020 and will close at 4:30 pm on February 17, 2020.
Minister of Industry, Commerce, Agriculture and Fisheries, Hon. Audley Shaw, says the micro, small and medium-sized enterprise (MSME) sector is providing stable revenue and employment for Jamaica.
In a speech delivered by Principal Director in the Ministry, Michelle Parkins, at Mona Graphic Printers (MGP) 25th Anniversary Celebration and Awards Ceremony in Kingston, Mr. Shaw said the sector positively impacted the economy in 2018 with some $80.40Bn in revenue.
The Minister noted that this represented 16.3% of the funds collected from businesses, adding that the Government is fully committed to providing a “facilitatory environment” for MSMEs to continue thriving.
