The world’s biggest oil companies are painting a grim picture of the future and speculators are listening. Hedge funds reduced bullish bets to the lowest level in five years as oil capped the worst month since the financial crisis. The net-long position in West Texas Intermediate contracted 7 percent in the seven days ended July... Continue Reading →
Deadbeat Ex-Billionaire Batista Daring Bondholders to Seize Ship
Out in the Atlantic Ocean, 130 miles off the coast of Brazil, an oil ship the length of New York City’s Chrysler building is at the center of an escalating legal war. This battle pits the crude producer founded by Eike Batista, Brazil’s most notorious ex-billionaire, against bondholders who loaned another of his companies $500... Continue Reading →
Brazil’s real sinks on debt data
SAO PAULO, July 31 Brazil's currency sank its most in nearly three months on Friday after worse-than-expected government debt data raised investor fears of a credit downgrade, while Mexico's currency gained following new government efforts to support the struggling peso. Other currencies in the region were little changed, though Colombia's peso posted a modest rebound... Continue Reading →
How Cheap Oil Is Fueling a Surge In New Factories
America's energy rebirth is the gift that keeps on giving for the economy. But this year, it's more about construction than drilling holes in the ground. While the collapse in oil and gas prices since the middle of last year caused energy companies to slash investment in oil wells, Thursday's report on second-quarter GDP showed... Continue Reading →
Technip Swings to Loss
Technip SA swung to a loss in the second quarter after Europe’s biggest oil-services provider took a writedown amid an industry downturn it expects to last for longer than anticipated. The loss reached 306.9 million euros ($336.7 million) compared with a profit of 158 million euros the previous year, the Paris-based company said Thursday in... Continue Reading →
Brazil Boosts Rate by Half-Point Saying Level Is High Enough
Brazil’s central bank raised its key rate by 50 basis points for a sixth straight meeting and signaled that borrowing costs are high enough to slow inflation toward its target. The bank’s board, led by President Alexandre Tombini, boosted the Selic rate to 14.25 percent Wednesday as forecast by 50 of 58 economists surveyed by... Continue Reading →
Mexico Said to Start Annual Oil-Hedging Program
Mexico started its annual program to lock in oil sales for the coming year as a shield against a further drop in prices, three people with direct knowledge said. Morgan Stanley, Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc. are among the banks involved, said the people, who asked not to be... Continue Reading →
Brazil downgrade threat is a real danger sign
When Standard & Poor’s said on Tuesday it was considering downgrading Brazil’s credit rating by one notch to junk, markets seemed to shrug off the news. After initially touching a 12-year low, Brazil’s currency, the real, finished virtually flat at R$3.36 against the dollar while the Ibovespa benchmark stock index resumed a rally from earlier in the day,... Continue Reading →
Brazil set to hike rates as inflation risks rise
(Reuters) - Brazil's central bank was poised to maintain its aggressive pace of interest rate hikes on Wednesday after a steep cut in fiscal savings targets weakened the real currency and stirred doubts about the government's commitment to help contain price increases. Forty-two out of 55 analysts surveyed by Reuters last week expect the central... Continue Reading →
How Big Was BP’s $5.8 Billion Loss?
BP Plc reported a $5.8 billion net loss last quarter, not including inventory holding losses, citing low oil prices and charges from the 2010 Gulf of Mexico oil spill. How does that stack up for the London-based energy giant? Read More
