Oil Updates — Crude down; Russia China’s top oil supplier in July; Petrobras begins selling refining assets

Wealthlandnews
Wealthlandnews August 21, 2022
Updated 2022/08/21 at 10:42 PM

https://arab.news/j3uc2
RIYADH: Oil prices steadied on Friday, but fell for the week on a stronger US dollar and fears that an economic slowdown would weaken crude demand.
Brent crude futures settled at $96.72 a barrel, gaining 13 cents.
US West Texas Intermediate crude ended 27 cents higher at $90.77.
Both benchmarks fell about 1.5 percent on the week.
Russia is China’s top oil supplier for 3rd month in July
Russia held its spot as China’s top oil supplier for a third month in July, data showed on Saturday, as independent refiners stepped up purchases of discounted supplies while cutting shipments from rival suppliers such as Angola and Brazil.
Imports of Russian oil, including supplies pumped via the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia’s European and Far Eastern ports, totaled 7.15 million tons, up 7.6 percent from a year ago, data from the Chinese General Administration of Customs showed.
Still, Russian supplies in July, equivalent to about 1.68 million barrels per day, were below May’s record of close to 2 million bpd. China is Russia’s largest oil buyer.
Imports from second-ranking Saudi Arabia rebounded last month from June, the lowest in more than three years, to 6.56 million tons, or 1.54 million bpd, but still slightly below the year-ago level.
Year-to-date imports from Russia totaled 48.45 million tons, up 4.4 percent on the year, still trailing behind Saudi Arabia, which supplied 49.84 million tons, or 1 percent below the year-ago level.
China’s crude oil imports in July fell 9.5 percent from a year earlier, with daily volumes at the second lowest in four years, as refiners drew down inventories and domestic fuel demand recovered more slowly than expected.
The strong Russian purchases squeezed out competing supplies from Angola and Brazil, which fell 27 percent year-on-year and 58 percent, respectively.
Brazil’s Petrobras in non-binding phase of selling refining assets
Brazilian oil giant Petrobras said on Friday it had begun the non-binding phase of selling its refining assets.
The assets to be sold by the state-run company include its refineries RNEST, REPAR and REFAP.
Nigerian president worried over large-scale crude oil theft
Nigeria’s President Muhammadu Buhari expressed concern on Friday over large-scale crude oil theft, saying it was affecting the country’s revenues “enormously.”
The oil regulator has said that Nigeria lost $1 billion in revenue during the first quarter of this year due to crude theft.
Nigeria is unable to meet some of its financial obligations to its citizens due to the oil theft, Buhari told government workers who are requesting a pay increase to help deal with double-digit inflation.
“On your request for a salary review, I wish to urge you to appreciate the revenue constraints being presently faced by the government which are caused mainly by the activities of unscrupulous citizens through the theft of our crude oil, a major contributor to our revenue base,” Buhari said.
Crude theft poses an existential threat to Nigeria’s oil industry, the local head of Shell has said, resulting in the shutdown of two of its major pipelines.
(With input from Reuters)

RIYADH: The Saudi Grains Organization paid SR60.9 million ($16.2 million) to 104 local farmers following the procurement of 34,489 tons of wheat, said a SAGO statement
The organization allocates a certain quantity of wheat to be purchased by local farmers every season. During the current wheat season, the SAGO spent SR654 million to purchase local produce.
It is part of the government’s initiative to ensure food security and support local farmers.
BEIJING: Russia held its spot as China’s top oil supplier for a third month in July, data showed on Saturday, as independent refiners stepped up purchases of discounted supplies while cutting shipments from rival suppliers such as Angola and Brazil.
On the other hand, imports from second-ranking Saudi Arabia rebounded last month from June, which was the lowest in more than three years, to 6.56 million tons, or 1.54 million barrels per day, but still slightly below year-ago level.
Year-to-date imports from Russia totaled 48.45 million tons, up 4.4 percent on the year, still trailing behind Saudi Arabia, which supplied 49.84 million ton, or 1 percent percent below the year-ago level.
Imports of Russian oil, including supplies pumped via the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia’s European and Far Eastern ports, totaled 7.15 million tons, up 7.6 percent from a year ago, data from the Chinese General Administration of Customs showed.
Still, Russian supplies in July, equivalent to about 1.68 million bpd, were below May’s record of close to 2 million bpd. China is Russia’s largest oil buyer.
China’s crude oil imports in July fell 9.5 percent from a year earlier, with daily volumes at the second lowest in four years, as refiners drew down inventories and domestic fuel demand recovered more slowly than expected.
The strong Russian purchases squeezed out competing supplies from Angola and Brazil, which fell 27 percent year-on-year and 58 percent, respectively. Customs reported no imports from Venezuela or Iran last month. State oil firms have shunned purchases since late 2019 for fear of falling foul of secondary US sanctions. Imports from Malaysia, often used as a transfer point in the past two years for oil originating from Iran and Venezuela, soared 183 percent on the year, to 3.34 million tons, and up from June’s 2.65 million tons.
RIYADH: Indian shares ended lower on Friday, with the benchmark Nifty 50 index snapping an eight-session winning streak, as investors locked in profits after the sharp rally.
The NSE Nifty 50 index closed down 1.1 percent at 17,758.45, recording its biggest percentage fall in nearly two months.
The S&P BSE Sensex dropped 1.08 percent to 59,646.15 in its first fall in six sessions. The decline marked the index’s biggest percentage loss since June 22.
Still, both indexes notched up their fifth week of gains, with the Nifty 50 adding 0.34 percent and the Sensex 0.3 percent for the week.
Bank stocks led the fall
Bank stocks led the fall, with the Nifty PSU bank index closing down 2.7 percent. Canara Bank and Bank of Baroda were the top losers on the index.
IndusInd Bank and Bajaj Finserv were the top losers on the Nifty 50 index, down 3.8 percent and 3 percent, respectively.
Auto and consumer stocks, the major drivers of the recent rally, also declined on Friday. Tata Motors ended 2.9 percent lower, while Hindustan Unilever fell 1.8 percent.
The Nifty Auto index closed down 1.4 percent, having risen 4.7 percent so far this month.
Green hydrogen plant in Hazira
Indian multinational conglomerate Larsen & Toubro, also known as L&T, has commissioned a green hydrogen plant at its AM Naik Heavy Engineering Complex in Hazira, Gujarat, according to a press release.
The press release noted that the production of green hydrogen based on an alkaline electrolysis process has begun, and it will produce 45 kilograms of green hydrogen every day, which will be used for captive consumption in the company’s Hazira manufacturing complex.
“This initiative is in line with L&T’s climate leadership targets of Lakshya-2026 that will help reduce greenhouse gases footprint for us as well as our clients by approximately 300 tons per annum,” said Subramanian Sarma, whole-time director and senior executive vice president (energy), L&T.
RBI likely to set 7.23 percent cutoff yield on new 10-year bond
The Reserve Bank of India will likely set a cutoff yield of 7.23 percent on 130 billion rupees ($1.63 billion) of the new 10-year bond being auctioned on Friday, according to the median estimates in a Reuters poll of 11 traders.
India’s federal government is also selling 40 billion rupees of a 6.69 percent 2024 bond, 70 billion rupees of a 7.10 percent 2029 bond and 90 billion rupees of a 6.95 percent 2061 bond.
The RBI will likely sell the 2024 bond at a 6.54 percent yield, while it will sell the 2029 bond at a 7.15 percent yield, according to the poll. The central bank is expected to sell the 2061 bond at a 7.62 percent yield.
The cutoff estimates for the 2024 bond were between 6.51 percent and 6.56 percent, while those for the 2029 note were between 7.14 percent and 7.16 percent.
The estimates for the new 2032 10-year bond were between 7.21 percent and 7.26 percent, while those for the 40-year paper were between 7.60 percent and 7.63 percent.
The government has a greenshoe option to retain an additional 20 billion rupees on each security.

(With input from Reuters)
DUBAI: Bitcoin, the leading cryptocurrency internationally, traded lower on Sunday, falling by 0.23 percent to $21,197.99 as of 8 a.m. Riyadh time.
Ethereum, the second most traded cryptocurrency, was priced at $1,583.38 falling by 3.90 percent, according to data from Coindesk.
Bitcoin drops to a three-week low after a sudden crypto drop
Several crypto assets fell sharply on Friday, with Bitcoin reaching a three-week low as a result of sudden selling, with analysts divided over the reasons behind the decrease, Reuters reported.
As GlobalBlock analyst Marcus Sotiriou noted in a research note, the heavy selling was not triggered by a single catalyst.
He said: “But the S&P 500 rejecting and failing to continue its recovery contributed to Bitcoin’s drop.” Early Friday afternoon, the S&P 500 was down around 1 percent.
The move, according to Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, resulted from a large sale transaction.
“It’s not showing the pattern of a flash crash, as the assets didn’t immediately rebound sharply but sank even lower in the hours that followed,” she said.
Cardano seemed to be the first cryptocurrency to move, followed by bitcoin and ether, and then other altcoins like Dogecoin.
Despite Federal Reserve rate hikes and ultrahigh inflation, cryptocurrency prices have plummeted this year.
The inability of Bitcoin to recover its losses, according to Craig Erlam, senior market analyst at Oanda, “suggests that there is substance behind the move.” It was the worst day for it since June’s collapse after Friday’s move.
“Speculating in cryptocurrencies is extremely high risk and is not suitable for the vast majority of people,” Streeter said.
Japan’s SBI withdraws from Russia’s crypto mining industry
The largest online brokerage in Japan, SBI Holdings, is shutting down its crypto mining business in the Russian Federation, according to Bitcoin.com.
The financial firm is planning to sell its equipment and withdraw due to mounting uncertainty over the future of such investments caused by the ongoing conflict in Ukraine.
According to Bitcoin.com, low-cost power and suitable climate made Russia an attractive destination for cryptocurrency miners when China cracked down in May 2021.
Bitcoin mining, among other Russian industries, has been affected by sanctions imposed over Moscow’s attack on Ukraine this year.
A representative of SBI, the largest online broker in Japan, told Bloomberg that the Russian-Ukrainian conflict has created uncertainty around the mining business in the energy-rich region, while the crypto market’s downturn has made minting digital currencies less profitable.
Hideyuki Katsuchi, the company’s chief financial officer, announced that it plans to sell its equipment in Russia and withdraw from the country.
In the second quarter, SBI registered a $72 million pre-tax loss from its crypto business due to negative developments that led to a loss of over $15.8 million, a first in a decade for the group. SBI entered the digital asset space earlier than other Japanese financial firms.

With inputs from Reuters
RIYADH: China’s Xiaomi Corp. posted a steep drop in second quarter revenue on Friday, as the world’s biggest smartphone market shrank, hit by strict COVID-19 restrictions.
Sales fell 20 percent year on year to 70.17 billion yuan ($10.31 billion), missing estimates and marking a steeper decline from the previous quarter when the company posted its first revenue drop since listing.
Net income fell 67 percent to 2.08 billion yuan, also missing analysts’ estimates.
“In the Chinese market, there was the resurgence of the pandemic, so as a result, demand was difficult and weak,” company president Wang Xiang said on an earnings call.
Wang added that rising fuel prices, input costs, and inflation affected overseas sales as well. Net profit fell as a result of pressure to clear inventory via sales and promotions.
China sentences tycoon to 13 years
A Shanghai court on Friday sentenced Chinese-Canadian billionaire Xiao Jianhua, not seen in public since 2017, to 13 years in jail and fined his Tomorrow Holdings conglomerate 55.03 billion yuan ($8.1 billion), a record in China.
Xiao and Tomorrow Holdings were charged with illegally siphoning away public deposits, betraying the use of entrusted property, and the illegal use of funds and bribery, the Shanghai First Intermediate Court said.
It added the punishment was mitigated because both had admitted their crimes and cooperated in recovering illegal gains and in restoring losses.
China-born Xiao was last seen whisked away in a wheelchair from a luxury Hong Kong hotel in the early hours with his head covered, a source close to the tycoon told Reuters at the time.
Xiao and Tomorrow have “severely violated a financial management order” and “hurt state financial security,” the court said.
China soybean imports from Brazil fall
China soybean imports from Brazil fall in July, US imports up.
China’s soybean imports from Brazil dropped in July from a year ago, while shipments from the US increased, customs data showed on Saturday, as high prices curbed demand for South American cargoes.
China, the world’s top soybean buyer, imported 6.97 million tons of the oilseed from Brazil in July, down from 7.88 million tons a year earlier, data from the General Administration of Customs showed.
Total imports last month dropped 9 percent from a year before to 7.88 million tons, the lowest number for July since 2016, as high global prices and weak demand curbed appetite for the oilseed, customs data showed earlier.
US arrivals in July reached 377,642 tons, up from 42,277 tons in the same month last year, according to customs data.
China’s July Russian coal imports hit 5-year high
China’s coal imports from Russia jumped 14 percent in July from a year earlier to their highest in at least five years, as China bought discounted coal while Western countries shunned Russian cargoes over its invasion of Ukraine.
China brought in 7.42 million tons of coal from Russia last month, data from the General Administration of Customs showed on Saturday. That was the highest monthly figure since comparable statistics began in 2017, up from 6.12 million tons in June and 6.49 million tons in July 2021.

(With input from Reuters)

Share this Article