CM: Oil Weaker as Traders Eye U.S. Crude Data Gold Falls on Profit-Taking in Near Term
Oil is faltering in early morning trade as European equities slid and most Asian stocks dipped as well. Traders will be eyeing the release of the latest weekly U.S. Department of Energy crude inventories data at 1030 ET. The American Petroleum Institute reported Tuesday that stockpiles rose, increasing concerns about the downside risks to the U.S. economy.
Gold too is falling on profit-taking as the yellow metal rallied to a six-week high. Still, many investors see gold trending higher in the longer term as worries about global economic prospects bolster demand for safe haven assets.
At 0745 ET, Brent crude is down 1.2% at $76.01 a barrel, while light sweet crude is also 1.2% weaker at $74.87 a barrel, and natural gas is down 0.1% at $4.26 a million British thermal units.
Gold is down 0.3% at $1,225.00 an ounce, while silver is 1.1% weaker at $18.46 an ounce, and copper is down 0.2% at $3.35 a pound.
Dallas-based Kosmos Energy LLC has abandoned plans to sell $4 billion in Ghana oil field assets to Exxon Mobile Corp ( XOM ) amid government opposition. Instead, Kosmos will explore deposits in the African nation with its partners and start pumping oil from the offshore Jubilee field by the fourth quarter.
Royal Dutch Shell plc (RSDA) declared force majeure on its Nigerian Bonny Light oil exports from Aug. 16, having warned of rising sabotage on its pipelines in Nigeria's southern Niger Delta over the past few weeks. Through the declaration, Shell will be free from contractural deliveries to customers due to actions beyond the company's control.
Hovensa LLC reported a pipe like at its refinery in St. Croix in the Virgin Islands. The 500,000 barrel-a-day refinery is a joint venture between Hess Corp ( HES ) and Venezuela's state oil company.
Meanwhile, mining giant BHP Billiton Ltd ( BHP ) raised its bid for Potash Corp. of Saskatchewan Inc ( POT ) as it looks to take over the fertilizer group. BHP is now offering $130 in cash for each Potash share in a deal estimated at $39 billion. BHP shares are down over 1% pre-market on the NYSE, while Potash is up over 1%.
