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Oil price rebounds in pre-Christmas rally - business live

Discussion in 'Market News' started by Lily, Dec 24, 2015.

  1. Lily

    Lily Forum Member

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    Rolling coverage of the latest economic and financial news, with the London stock market closing for Christmas at lunchtime


    10.17am GMT

    And lo, there appeared some economic news....

    It’s been a busy year for many brokers as borrowers take advantage of exceptionally low mortgage rates and seek guidance through the more complicated application process created by the Mortgage Market Review.

    ‘Remortgaging numbers in particular are rising, as borrowers wonder whether 2016 will finally bring that first interest rate rise for several years. While we are not convinced it will, those who would struggle to pay their mortgage if rates rise should consider a fixed rate. There are still some excellent deals to tempt borrowers although we may have seen the back of the very cheapest products.

    10.05am GMT

    Despite today’s rally, Brent crude is still almost 50% lower than in May when it traded hands at $69 per barrel.

    For all the talk of an oil price bounce Brent Crude Oil is still only US $37.50! Who thought that a year ago? #DISINFLATION

    9.45am GMT

    This chart, via CMC’s Jasper Lawler, shows how the amount of oil in storage climbed this year, forcing producers to cut the number of rigs in use:

    OPEC’s wily plan to keep supplying the market with oil, drive prices to a level that will bankrupt the competition, which will in turn reduce output and lead to price recovery is taking a little longer than first imagined.

    Just like its meeting over a year ago, the latest meeting of the Organisation of Petroleum Exporting Counties (OPEC) in December sent the oil price to new multi-year lows. This time OPEC failed to even agree on a quota. An apparent row between Saudi Arabia and Iran has led to the removal of any kind of production ceiling, which previously stood at 30m bpd.

    9.36am GMT

    The Russian government will be pleased to see the oil price rallying this morning, given its reliance on crude exports.

    “It would take more than 90 rubles per dollar to provoke significant repercussions.”

    Russia "risks meltdown" if ruble weakens past 90 to the dollar https://t.co/MBeI06GHfm pic.twitter.com/pdfn6QrK0w

    9.13am GMT

    Shares in UK retailers are mainly down this morning, reflecting concerns that the festive period may not have been as merry as they’d like.

    Apart from the wild-eyed men traditionally spotted in the perfume halls of the big department stores today, few people will need to pay full price for anything in the shops today and Online shoppers will be able to get stuck into the John Lewis Clearance Sale from 5pm onwards...

    8.40am GMT

    Europe’s stock markets have opened rather cautiously today.

    Volumes are expected to be thin over the next few hours, whilst data that might actually deliver any meaningful direction is also going to be hard to come by.

    8.34am GMT

    A mince pie for Augustin Eden of Accendo Markets, who says that traders are “getting into the petroleum spirit of Christmas” today as they push oil higher.

    8.26am GMT

    The rising oil price has helped push shares higher in Australia, where the stock market enjoyed a pre-Christmas bounce.

    The S&P/ASX 200 index jumped by 1.2%, its seventh consecutive day of gains.

    8.18am GMT

    The oil price is also benefitting from the news that US oil drillers reined in production last week.

    There were just 538 oil rigs in active service this week, three fewer than the previous week, according to the latest Baker Hughes rig count.

    The current rig count is... pointing to U.S. production declining sequentially between 2Q15 and 4Q15 by 320,000 barrels per day.”

    8.02am GMT

    After hitting eleven-year lows this week, the oil price is staging a rally this morning.

    Judging by the moves in oil overnight, one could be forgiven for thinking that Santa’s sleigh runs on Light-Sweet Cushing, Oklahoma Crude.

    7.48am GMT

    Good morning, and a Merry Christmas to you.

    Related: Elves and shelves: how Tesco copes on the year's busiest food shopping day

    Our European opening calls: $FTSE 6240 down 1 $DAX Closed $CAC 4678 up 3 $IBEX 9657 up 16 $MIB Closed

    ....a fairly lacklustre start to today’s holiday shortened European session, while on the data front it is expected to be a fairly light day.

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