{"id":1986,"date":"2018-11-15T17:19:09","date_gmt":"2018-11-15T17:19:09","guid":{"rendered":"http:\/\/euromenaenergy.com\/?p=1986"},"modified":"2018-11-15T17:19:09","modified_gmt":"2018-11-15T17:19:09","slug":"energy-firms-dive-with-oil-in-asia-major-markets-fall-into-negative-territory","status":"publish","type":"post","link":"https:\/\/emimer.com\/?p=1986","title":{"rendered":"Energy firms dive with oil in Asia; major markets fall into negative territory"},"content":{"rendered":"
\n

AFP\/Hong Kong<\/p>\n<\/div>\n

Asian energy firms took another battering yesterday after oil prices suffered their worst day in three years, while most of the region\u2019s major equity markets fell into negative territory.
\nThe pound enjoyed some support after Britain and the European Union said they had reached a draft Brexit deal, though observers were cautious as it faces a number of hurdles before being given the green light.
\nBoth main crude contracts plunged Tuesday \u2014 Brent lost 6.6% and WTI 7.1% \u2014 on oversupply fears just as demand falters in the face of the China-US trade war and easing economic growth.
\nWith prices now down more than a fifth from their four-year highs seen in early October, oil kingpin Saudi Arabia this week said it will cut output.
\nThe announcement fuelled an initial surge in the crude market before a Donald Trump tweet calling for it to keep prices low sent the commodity plunging.
\nThe selling continued on Tuesday and then Wednesday in Asia after Opec trimmed its outlook for demand this year.
\nAnd energy firms were caught in the crossfire.
\nHong Kong-listed CNOOC dived 4.7% while Sinopec slipped 2.3% and PetroChina lost 3.6%. In Tokyo, Inpex was 1.9% down and Australia\u2019s Woodside Petroleum sank 2.5%.
\n\u201cOil prices remain the hottest topic in capital markets if not in the world after extending their slide to 12 days and suffering one of the more precipitous falls in years,\u201d said Stephen Innes, head of Asia-Pacific trade at OANDA.
\n\u201cIt\u2019s all about the toxic combination of weakening global demand and oversupply that has sent prices tumbling.\u201d
\nAnd Rakuten Securities commodity analyst Satoru Yoshida tipped Trump\u2019s pressure to keep Opec from making deep cuts.
\nBroader markets were also lower, with Hong Kong slipping 0.5% and Shanghai down 0.9%.
\nEarlier, figures showed Chinese consumer spending slowed last month, with officials pointing to shoppers saving for the annual Singles Day mega-sale that took place on November 11.
\nHowever, there was some upbeat news in an improvement in investment and industrial production.
\nSydney lost 1.7%, while there were also losses in Singapore, Seoul, Wellington and Bangkok.
\nBut Tokyo edged up 0.2% despite data showing the Japanese economy shrunk in July-September owing to weakness in China and a series of natural disasters hitting domestic spending.
\nManila, Mumbai Taipei and Jakarta also enjoyed gains.
\nIn early European trade, London fell 0.5%, Paris shed 0.8% and Frankfurt was 0.9% lower.
\nThere was little movement after comments from the White House\u2019s top economic adviser Larry Kudlow that US and Chinese officials were \u201chaving communications at all levels\u201d on trade ahead of a possible meeting between Trump and President Xi Jinping this month.
\nWith both sides digging their heels in, expectations for a breakthrough are low, analysts said.
\nOn currency markets, the pound managed to hold on to small gains that came on the back of news that Prime Minister Theresa May finally had a Brexit agreement to put to her cabinet.
\nHowever, she must now get it past a divided cabinet before putting it to parliament, where both pro- and anti-Brexit MPs are unhappy with the few details that have so far emerged from the pact. \u201cFailure to pass the deal will raise the prospects of a disorderly Brexit, a general election and also a second referendum,\u201d said Rodrigo Catril, senior foreign exchange strategist at National Australia Bank.
\n\u201cBy the end of the week with some certainty the pound won\u2019t be trading near current levels, it could be significantly higher or massively lower.\u201d
\nAnd Neil Wilson, chief market analyst at Markets.com warned: \u201cThe cabinet will likely pass it but with assault from all sides of the house and Brexit divide, it seems impossible parliament will vote it through.\u201d
\nThe euro was also enjoying some lift from the Brexit developments, though the gains were tempered by news that Italy\u2019s populist government had stuck to its wallet-busting budget plan, putting it on course for a standoff with Brussels.
\nData showing the first shrinkage of the German economy for three years added to pressure on the unit.
\nIn Tokyo, the Nikkei 225 closed up 0.2% to 21,846.48 points; Hong Kong \u2014 Hang Seng ended down 0.5% to 25,654.43 points and Shanghai \u2014 Composite closed down 0.9% to 2,632.24 points yesterday.<\/p>\n","protected":false},"excerpt":{"rendered":"

AFP\/Hong Kong Asian energy firms took another battering yesterday after oil prices suffered their worst day in three years, while most of the region\u2019s major equity markets fell into negative territory. The…<\/p>\n","protected":false},"author":1,"featured_media":1998,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[46,57,90,96,107,137,139,160,174,184,201,202,209,232,233,244,246,249,256,267,277,279,288],"class_list":["post-1986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-aramco","tag-baroudi","tag-democracy","tag-doha","tag-embargo","tag-gas","tag-gazprom","tag-international-maritime-disputes","tag-lebanon","tag-maritime-disputes","tag-offshore","tag-oil","tag-opec","tag-putin","tag-qatar","tag-rosneft","tag-roudi","tag-russia","tag-saudi","tag-straddling-hydrocarbons-reserves","tag-total","tag-trump","tag-usa"],"_links":{"self":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/1986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1986"}],"version-history":[{"count":0,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/1986\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/media\/1998"}],"wp:attachment":[{"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}