Asian refiners have called on Saudi Arabia to slash the official selling prices (OSP) of its crude for a third straight month in May, after Middle East benchmarks and refining margins dropped amid ample supplies and lower demand due to the coronavirus. Last month, the world's top exporter Saudi Arabia surprised everyone by slashing prices for April, after OPEC's supply-cut pact with Russia fell apart, sparking a battle for market share and sending oil prices to 18-year lows. Markets globally are now flooded with cheap oil with storage spaces filling up fast, while refiners cut output or shut plants following coronavirus lockdowns....
(Bloomberg) -- China said the U.S. was trying to shift the blame for its own outbreak after American intelligence officials concluded Beijing concealed infections. Earlier, a county in central China was locked down again after a flare-up in cases, pointing to the difficulty of sustained containment.There are signs that the worst may soon be over in Italy, but deaths in New York and New Jersey doubled in three days and the mayor of Los Angeles asked the whole city to wear masks outside. The Pentagon is seeking 100,000 body bags amid warnings deaths could soar.In Britain, almost one million people have claimed welfare payments in the past two weeks and a financial regulator proposed freezing some credit card repayments. Spanish jobless claims rose by a record, and filings for U.S. unemployment benefits are set to top 3 million again.Key Developments:Global cases top 937,000; 47,000 dead: Johns HopkinsYoung age of many New...
(Bloomberg) -- China is moving forward with plans to buy up oil for its emergency reserves after an epic price crash, according to people with knowledge of the matter.The world’s biggest importer is taking advantage of a 60% plunge this year to snatch up cheaper barrels for its stockpiles, a source of considerable speculation in the oil market because of the government’s reluctance to release information about their formation, size or use.Beijing has asked government agencies to quickly coordinate filling tanks, the people said, asking not to be identified because the matter is confidential. In addition to state-owned reserves, it may use commercial space for storage as well, while also encouraging companies to fill their own tanks, they said.The initial target is to hold government stockpiles equivalent to 90 days of net imports, which could eventually be expanded to as much as 180 days when including commercial reserves.Ninety days of net...
(Bloomberg) -- U.S. equity futures rose on Thursday as investors caught their breath following a rough start to the second quarter for risk assets. European stocks fluctuated, while oil surged after China unveiled plans to boost its reserves.Futures on the main U.S. equity benchmarks all climbed in the wake of another session of steep declines. The Stoxx Europe 600 Index erased an early advance. Stocks in Asia were mixed, with losses in Japan and Australia and gains in South Korea. Brent crude futures jumped as much as 12% as the world’s biggest importer took advantage of a 60% plunge this year to add to stockpiles. Treasuries slipped along with the dollar.After enduring their worst quarter since 2008, stocks are struggling for traction as companies move to slash dividends and more U.S. states enact severe restrictions on people movement amid the coronavirus pandemic. Fatalities rose in France and Spain, while Italy and...
A filing has revealed that beleaguered airline American Airlines (AAL) has now accessed a total of $2.73 billion from three revolving credit facilities in order to cope with the coronavirus fallout. The company has now borrowed the full $450 million from an April 2016 facility, plus $750 million from a 2013 revolver and ~$1.53B from a 2014 revolving facility.At the same time, Stifel Nicolaus analyst Joseph DeNardi downgraded his rating on AAL stock from Hold to Sell. He has a $13 price target on the stock (22% upside potential). Shares have plunged 63% year-to-date, with a 31% drop in just the last five days, and DeNardi believes the outlook for AAL is particularly worrying.“The bearish scenario is playing out,” the analyst told investors, with air travel potentially suspended this summer due to the coronavirus pandemic. He believes that AAL could emerge from the crisis a much smaller player, with reduced capacity and...
(Bloomberg) -- China said the U.S. is trying to shift the blame for the outbreak after American intelligence officials concluded China concealed infections. The Pentagon aims to provide as many as 100,000 body bags for civilian use.New York and New Jersey said deaths have doubled in three days, while Los Angeles’ mayor asked the whole city to wear masks outside. Meanwhile, a county in central China went back into lockdown after a flareup in infections.BP Plc joined companies including Tesla Inc. and Qantas Airways Ltd. managing infections in their workforces, and struggling Boeing Co. is expected to start paying off staff. The U.K.’s top market regulator proposed freezing credit-card debt as welfare claims mount.Key Developments:Global cases top 937,000; 47,000 dead: Johns HopkinsYoung age of many New York patients surprises doctorsLocked up, beaten and shamed: virus laws lead to abuseEuropeans see hope in Italy’s case stabilizationTB vaccine may hold clue to fighting...
