Oil set for biggest weekly drop since July on demand pessimism
Man loses in betting, steals 25kg of gold from employer
Oil headed for its biggest weekly decline since the middle of July as a streak of disappointing economic data added to fears a global recession is coming. Futures in New York edged higher Friday, but are down 5.8 per cent this week.
West Texas Intermediate for November delivery rose 25 cents, or 0.5 per cent, to $52.70 a barrel on the New York Mercantile Exchange as of 11:06am in London.
Brent for December increased 0.8 per cent to $58.19 a barrel on the ICE Futures Europe Exchange, and is down 6.1 per cent for the week. It traded at a $5.57 premium to WTI for the same month. A key measure of American service industry activity dropped to the lowest in three years last month, while an employment gauge registered its weakest print in more than five years.
That came after US payroll numbers fell short of estimates earlier in the week, there were signs of stagnation in the Euroarea economy and there was a surprise increase in American crude stockpiles.
The deteriorating US economy - and more signs of weakness in China and Germany - is worsening what was an already fragile consumption outlook for fuels. Opec member Nigeria warned Thursday that oil demand will be "very challenging" next year. These concerns and a quick return of Saudi Arabian production have evaporated oil's gains following the Sept. 14 attacks on the kingdom.
"Oil markets are focusing on severe macro risks, but are also shrugging off the most heightened geopolitical risk in years," Citigroup Inc. analysts including Ed Morse wrote in a report. "As markets shed just about any consideration of supply risk, attention stays focused on what is nearly universally expected to be a significantly weaker year of demand growth."
A key US factory index fell to a 10-year low on Tuesday as businesses held back investments amid tariffs and the USChina trade war. That was followed by data Wednesday showing hiring at US companies cooling, while quarterly sales figures from automakers such as Ford Motor Co. are adding to the concern.
Washington and Beijing are set to restart high-level trade negotiations next week, but the chances of a short-term breakthrough don't appear to be high. Meanwhile, the US imposed tariffs on European goods including aircraft and dairy products this week.
Meanwhile, Newly-commissioned Permian Basin crude pipelines have yet to boost US crude exports, as the ongoing US-China trade war weighs on demand from Asia.
The US Census Bureau said exports averaged 2.73 million barrels a day in August, up just 40,000 barrels from a month before.
That's despite the start of two widely anticipated crude pipelines from West Texas to the Gulf Coast. Plains All American LP's began service on its Cactus II crude pipeline in August and loaded cargoes for export that month.
Losing all his money in bets he placed during the Indian Premier League (IPL), this 30-year-old in India chose to steal 25 kilograms of gold from his employer, allegedly.
Earlier, police in Delhi arrested him along with his two accomplices for stealing.
The accused were identified as Bharat Nathmal Soni, Sachin Shinde who are residents of West Vinod Nagar in Delhi and Shravan, who is a resident of Sirohi district in Rajasthan, police said, according to a Hindustan Times report.
A complaint was lodged with the police that stated that Soni was working as in-charge of head office of his company in the Karol Bagh neighbourhood of Delhi and he used to carry gold jewellery from head office to branch office in Chandni Chowk. This time, the complainant said that he failed to deposit the complete amount of jewellery at the head office.
"During investigation, it was learnt that Soni was frequently changing his location across the country. On September 25, he was arrested from Rajasthan and on his instance.