Oil prices touch fresh 11-month highs after fall in US crude stockpiles

The drop in US crude stocks is a typical year-end occurrence as energy companies take oil out of storage to avoid tax bills. (AFP file photo)
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Updated 08 January 2021
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Oil prices touch fresh 11-month highs after fall in US crude stockpiles

  • Oil prices have been supported this week by a pledge by Saudi Arabia to cut output

LONDON: Oil prices were steady on Thursday after hitting fresh 11-month highs on a fall in US stockpiles and in the wake of a pledge by Saudi Arabia to cut output by more than expected.

Brent crude was up 5 cents to $54.35 a barrel at London afternoon trade after touching $54.90, a fresh high not seen since before the first COVID-19 lockdowns in the West.

US West Texas Intermediate (WTI) was up 26 cents, or 0.5 percent to $50.89 after touching $51.28.

Wednesday’s storming of the US Capitol by supporters of US President Donald Trump appeared to have little impact, while a slight rise in global equities suggested investors believed President-elect Joe Biden would be empowered to spend more freely.

Oil prices have been supported this week by a pledge by Saudi Arabia to cut output by an additional 1 million barrels per day (bpd) in February and March.

“Saudi Arabia ... intimately knows the relationship between the oil price and the global inventory levels. Lower inventories equal higher prices,” SEB chief commodity analyst Bjarne Schieldrop said.

BACKGROUND

$63 - UBS expects Brent to trade at $63 per barrel in the second half of 2021 and WTI to trade at a $3 per barrel discount to Brent prices.

“The strategy of course only works if the OPEC+ (group of oil producers) stays disciplined,” he added. UBS analysts raised their forecast for Brent to $60 per barrel by mid-year, citing the Saudi output decision.

“The Kingdom’s preemptive move suggests to us a desire to defend prices and support the oil market amid demand concerns due to extended mobility restrictions in Europe,” they said.

US crude stocks fell and fuel inventories rose, the Energy Information Administration said on Wednesday.

Crude inventories were down by 8 million barrels in the week to Jan. 1 to 485.5 million barrels, against a Reuters poll showing analysts expected a 2.1 million barrel fall.

The drop in crude stocks is a typical year-end occurrence as energy companies take oil out of storage to avoid tax bills.

UBS raised its Brent forecast amid expectations of a sharp recovery in demand in the second quarter on vaccine rollouts and increased travel.

With Saudi Arabia’s move, OPEC’s production increase of 0.5 million barrels per day (bpd) for January is reversed in full, which will result in a tighter oil market in the first half of the year, analysts at the Swiss bank wrote in a note.

The bank expects Brent to trade at $63 per barrel in the second half of 2021 and WTI to trade at a $3 per barrel discount to Brent prices.


Strong earthquake strikes in China’s Tibet region near border with Nepal

Updated 9 min 30 sec ago
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Strong earthquake strikes in China’s Tibet region near border with Nepal

  • The CCTV online report said there were a handful of communities within 5 kilometers (3 miles) of the epicenter, which was 380 kilometers (240 miles) from Lhasa, the capital of Tibet
  • A 7.8 magnitude earthquake killed some 9,000 people and damaged about 1 million structures in Nepal in 2015

BEIJING: A strong earthquake shook a mountainous region in western China near Nepal on Tuesday morning, but there were no immediate reports of damage or casualties.
The magnitude 7.1 earthquake was centered in China’s Tibet region at a depth of about 10 kilometers (6 miles), the US Geological Survey said.
China’s earthquake monitoring agency recorded the magnitude as 6.8. The average altitude in the area around the epicenter is about 4,200 meters (13,800 feet), according to Chinese state broadcaster CCTV.
The CCTV online report said there were a handful of communities within 5 kilometers (3 miles) of the epicenter, which was 380 kilometers (240 miles) from Lhasa, the capital of Tibet.
In Nepal, the earthquake sent residents running out of their homes in the capital, Katmandu. Streets were filled with people woken up by the tremor.
A 7.8 magnitude earthquake killed some 9,000 people and damaged about 1 million structures in Nepal in 2015.

 


Forest tame Wolves to maintain unlikely Premier League title challenge

Updated 07 January 2025
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Forest tame Wolves to maintain unlikely Premier League title challenge

  • Forest remain third in the table but move level on points with Arsenal

WOLVERHAMPTON, United Kingdom: Nottingham Forest’s stunning season continued with a 3-0 victory at Wolves on Monday to give manager Nuno Espirito Santo a winning return to Molineux.
England international Morgan Gibbs-White and the in-form Chris Wood struck before half-time to take Forest to within six points of leaders Liverpool, who they host in their next Premier League game.
Substitute Taiwo Awoniyi rounded off the scoring and a sixth consecutive win for Forest in stoppage time.
Defeat leaves Wolves outside the relegation zone only thanks to goal difference as they suffered a first defeat under new boss Vitor Pereira.
Forest remain third in the table but move level on points with Arsenal.
Even if a shock title challenge proves beyond Espirito Santo’s men, they are building up an impressive cushion in the race for Champions League football next season.
They are five points clear of fifth-placed Newcastle and six in front of struggling champions Manchester City in sixth.
A top-four finish would guarantee a return to the continent’s elite competition for the first time in 45 years for the two-time European champions.
However, fifth could also be good enough depending on how English club fare in European competition this season.
“We need to stay humble. We haven’t achieved anything yet, we need to work until the end and this can lead us to good moments,” said Espirito Santo.
Gibbs-White savoured his return to the club where he spent the early part of his career.
In front of the watching new England manager Thomas Tuchel, the midfielder did his case for further international recognition no harm with a cool finish from Antony Elanga’s pass.
Forest’s unexpected rise from battling relegation until the final day of last season into Champions League contenders has been build on a solid defense and Wood’s purple patch.
The New Zealand international turned in Callum Hudson-Odoi’s low cross for his 12th goal of the season to double the visitors’ lead just before half-time.
Wolves pressed and probed for a way back into the game after the break but were toothless in the absence of talisman Matheus Cunha through suspension.
Mats Sels was forced into one brilliant save to deny Jorgen Strand Larsen to preserve a ninth clean sheet of the season and fourth in a row.
That solidity is familiar to Wolves fans from Espirito Santo’s time in charge of their club between 2017 and 2021.
The Portuguese coach led Wanderers from the Championship into Europe for the first time in 39 years.
Now after troubled spells at Tottenham and Saudi club Al-Ittihad, he is recreating that magic to leave Forest fans in dreamland.
“As coaching staff we have this natural ambition of improving the players, this is what we are obsessed with,” he added.
“If we improve the players then the team will improve and if the team improves then the club will improve and the city will be happy.”


Man charged in Tupac Shakur killing files motion to dismiss the case

Updated 07 January 2025
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Man charged in Tupac Shakur killing files motion to dismiss the case

LAS VEGAS: An ex-gang leader is seeking to have all the charges against him dismissed in the 1990s killing of rap music icon Tupac Shakur.
Attorney Carl Arnold filed the motion on Monday in the District Court of Nevada to dismiss charges against Duane Davis in the 1996 shooting of Shakur. The motion alleges “egregious” constitutional violations because of a 27-year delay in prosecution. The motion also asserts a lack of corroborating evidence and failure to honor immunity agreements granted to Davis by federal and local authorities.
“The prosecution has failed to justify a decades-long delay that has irreversibly prejudiced my client,” Arnold said in a news release. “Moreover, the failure to honor immunity agreements undermines the criminal justice system’s integrity and seriously questions this prosecution.”
Clark County District Attorney Steve Wolfson didn’t immediately respond to an email seeking comment on the filing. He has said evidence against Davis is strong and it will be up to a jury to decide the credibility of Davis’ accounts of the shooting including those in a 2019 memoir.
Davis is originally from Compton, California. He was arrested in the case in September 2023 near Las Vegas. He has pleaded not guilty to first-degree murder and has sought to be released since shortly after his arrest.
Davis is accused of orchestrating and enabling the shooting that killed Shakur and wounded rap music mogul Marion “Suge” Knight after a brawl at a Las Vegas Strip casino involving Shakur and Davis’ nephew, Orlando “Baby Lane” Anderson.
Authorities have said that the gunfire stemmed from competition between East Coast members of a Bloods gang sect and West Coast groups of a Crips sect, including Davis, for dominance in a genre known at the time as “gangsta rap.”
In interviews and a 2019 tell-all memoir that described his life as a leader of a Crips gang sect in Compton, Davis said he obtained a .40-caliber handgun and handed it to Anderson in the back seat of a car from which he and authorities say shots were fired at Shakur and Knight in another car at an intersection near the Las Vegas Strip. Davis didn’t identify Anderson as the shooter.
Shakur died a week later in a nearby hospital. He was 25. Knight survived and is serving a 28-year prison sentence in connection with the killing of a Compton man in 2015.
Anderson denied involvement in Shakur’s death and died in 1998 at age 23 in a shooting in Compton. The other two men in the car are also dead.
A Las Vegas police detective testified to a grand jury that police do not have the gun that was used to shoot at Shakur and Knight, nor did they find the vehicle from which shots were fired.


Syria unable to import wheat or fuel due to US sanctions, trade minister says

Updated 07 January 2025
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Syria unable to import wheat or fuel due to US sanctions, trade minister says

  • The sanctions were imposed during Assad’s rule, targeting his government and also state institutions such as the central bank

DAMASCUS: Syria is unable to make deals to import fuel, wheat or other key goods due to strict US sanctions and despite many countries, including Gulf Arab states, wanting to do so, Syria’s new trade minister said.
In an interview with Reuters at his office in Damascus, Maher Khalil Al-Hasan said Syria’s new ruling administration had managed to scrape together enough wheat and fuel for a few months but the country faces a “catastrophe” if sanctions are not frozen or lifted soon.
Hasan is a member of the new caretaker government set up by Islamist rebel group Hayat Tahrir Al-Sham after it launched a lightning offensive that toppled autocratic President Bashar Assad on Dec. 8 after 13 years of civil war.
The sanctions were imposed during Assad’s rule, targeting his government and also state institutions such as the central bank.
Russia and Iran, both major backers of the Assad government, previously provided most of Syria’s wheat and oil products but both stopped doing so after the rebels triumphed and Assad fled to Moscow.
The US is set to announce an easing of restrictions on providing humanitarian aid and other basic services such as electricity to Syria while maintaining its strict sanctions regime, people briefed on the matter told Reuters on Monday.
The exact impact of the expected measures remains to be seen.
The decision by the outgoing Biden administration aims to send a signal of goodwill to Syria’s people and its new Islamist rulers, and pave the way for improving basic services and living conditions in the war-ravaged country.
At the same time, US officials see the sanctions as a key point of leverage with a new ruling group that was designated a terrorist entity by Washington several years ago but which, after breaking with Islamist militant group Al Qaeda, has recently signalled a more moderate approach.
Washington wants to see Damascus embark on an inclusive political transition and to cooperate on counterterrorism and other matters.
Hasan told Reuters he was aware of reports that some sanctions may soon be eased or frozen.


US records first human bird flu death: health authorities

Test tube is seen labelled "Bird Flu" in front of the U.S. flag in this illustration taken, June 10, 2024. (REUTERS)
Updated 07 January 2025
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US records first human bird flu death: health authorities

  • The patient, aged over 65, had been hospitalized for a respiratory ailment, and was the first serious case of human infection of the H5N1 virus to be detected in the United States

WASHINGTON: The first human death linked to bird flu has been reported in the United States, health authorities in the state of Louisiana said Monday, adding that the patient was elderly and suffered from other pathologies.
The patient, aged over 65, had been hospitalized for a respiratory ailment, and was the first serious case of human infection of the H5N1 virus to be detected in the United States. Despite this death, the public health risk posed by bird flu remains “low,” the statement said.