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Global oil prices surge after suspected attacks on two tankers in Gulf of Oman

Agencies
June 14, 2019

New York, Jun 14: World oil prices have risen following suspected attacks on two tankers in the Gulf of Oman, worsening frayed tensions in the crude-rich Middle East region.

The rise in oil prices - jumping as much as 4.5 per cent before pulling back somewhat - boosted share prices of energy companies, while global stock markets also won some support from the prospect of US interest rate cuts this year. The Gulf of Oman lies at the other end of the strategic Strait of Hormuz from the Gulf, part of a vital shipping lane through which at least 15 million barrels of crude oil and hundreds of millions of dollars of non-oil imports pass each day.

US Secretary of State Mike Pompeo accused Iran of responsibility for the incidents and said the United States would raise the attacks at a UN Security Council meeting scheduled for later Thursday. Iran labelled the attacks "suspicious." US oil benchmark West Texas Intermediate for July delivery finished up 2.2 per cent at USD 52.28.

The advance marked a reversal from a sharp fall on Wednesday following a bearish US oil inventory report. "Tension across the Middle East is high - and the attacks on two tankers has further exacerbated the situation, even though there does not appear to have been any damage to the cargos," said John Hall, chairman of British-based consultancy Alfa Energy.

A note from Eurasia Group said the "incidents appear aimed at demonstrating the vulnerability of Gulf shipping while damaging confidence in the US ability to protect freedom of navigation." Gains in oil prices have been "constrained by high inventories and concerns about the global economy," it added. In equity markets, gains by petroleum-linked shares lifted Wall Street shares.

The S&P 500 finished up 0.4 percent, snapping a two-day losing streak. "From a broader perspective, the stock market has traded sideways over the last four sessions as it waits for further policy guidance from the Fed and for any updates on the US-China trade front," said Briefing.com Stocks elsewhere were mixed, with Frankfurt gaining, Tokyo retreating and London and Paris flat.

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News Network
February 24,2020

New Delhi, Dec 24: The Delhi Police said that a head constable was killed during clashes over the Citizenship Amendment Act (CAA) in northeast Delhi today.

Deputy Commissioner of Police, Shahdara, Amit Sharma was also injured during clashes, a senior official said. Sharma suffered injuries to his head and hand. He was hospitalised and is doing fine, the official added.

Tension escalated in northeast Delhi with protesters torching at least two houses and a fire tender in the Jaffrabad and Maujpur areas, where pro and anti-CAA groups clashed for the second consecutive day on Monday and hurled stones at each other.

Violence was also reported from the Chandbagh area in Jaffrabad.

Police fired tear gas shells and also resorted to lathicharge to disperse the protesters.

According to officials, a fire tender was damaged by the protesters after it responded to a fire call in the area.

The Delhi Metro closed entry and exit at the Jaffrabad and Maujpur-Babarpur stations as an uneasy calm prevailed in the area.

"Entry & exit of Jaffrabad and Maujpur-Babarpur are closed. Trains will not be halting at these stations," the Delhi Metro Rail Corporation (DMRC) said in a tweet.

Entry and exit were closed at the Jaffrabad metro station for over 24 hours.

Clashes broke out on Sunday evening between pro and anti-CAA groups near Jaffrabad after a large number of people protesting against the Citizenship (Amendment) Act (CAA) blocked a road, while similar sit-ins were launched in several other parts of the national capital.

Delhi chief minister Arvind Kejriwal has urged lieutenant governor of Delhi and the Union home minister to restore order.

Nobody should be allowed to orchestrate violence, he said.

Delhi Lt Governor Anil Baijal instructed the police commissioner to maintain law and order in the national capital in the wake of violence.

"Instructed @DelhiPolice and @CPDelhi to ensure that law and order is maintained in North East Delhi. The situation is being closely monitored. I urge everyone to exercise restraint for maintenance of peace and harmony," Baijal tweeted.

Delhi minister and Babarpur MLA Gopal Rai on Monday urged the people in the area to maintain peace, saying some people were purposely trying to disturb the atmosphere.

"With folded hands, I request people in Babarpur Assembly to maintain peace. Some people are purposely trying to spoil the atmosphere. I have spoken to Delhi LG and he has assured me that more policemen will be deployed to bring the situation under control," Rai said in a tweet.

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News Network
July 27,2020

Tokyo, Jul 27: Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets, although sentiment was mixed with tech gains supporting some Asian stocks.

MSCI's ex-Japan Asia-Pacific index rose 1.3 percent as Taiwan's TSMC, Asia's third-largest company by market capitalisation, rose almost 10 percent.

The chipmaker's gains boosted other tech stocks in the region and came after rival Intel signalled it may give up manufacturing its own components due to delays in new 7-nanometer chip technology.

Also soothing sentiment, Chinese shares eked out gains after big falls late last week, with CSI300 index rising 0.5 percent.

S&P500 futures were last up 0.4 percent in choppy trade while Japan's Nikkei fell 0.5 percent, resuming trade after a long weekend and catching up with falls in global shares late last week.

Global shares had lost steam last week after Washington ordered China's consulate in Houston to close, prompting Beijing to react in kind by closing the US consulate in Chengdu.

US Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways.

"US President (Donald) Trump used to say China's President Xi Jinping is a great leader. But now Pompeo's wording is becoming so aggressive that markets are starting to worry about further escalation," said Norihiro Fujito, chief investment strategist at Mitsubishi Securities.

Gold rose 1.0 percent to a record high of $1,920.9 per ounce, surpassing a peak touched in September 2011, as Sino-US tensions boosted the allure of safe-haven assets, especially those not tied to any specific country.

The yellow metal is also helped by aggressive monetary easing adopted by many central banks around the world since the pandemic plunged the global economy into a recession.

Some investors fret such an unprecedented level of money-printing could eventually lead to inflation.

MORE STIMULUS

Hopes of a quick US economic recovery are fading as coronavirus infections showed few signs of slowing.

That means the economy could capitulate without fresh support from the government, with some of earlier steps such as enhanced jobless benefits due to expire this month.

Investors hope US Congress will agree on a deal before its summer recess but there are some sticking points including the size of the stimulus and enhanced unemployment benefits.

US Treasury Secretary Steve Mnuchin said the package will contain extended unemployment benefits with 70 percent "wage replacement".

Democrats, who control the House of Representatives, want enhanced benefits of $600 per week to be extended and look to much bigger stimulus compared with the Republicans' $1 trillion plan.

Investors are looking to corporate earnings from around the world for hints on the pace of recovery in the global economy.

"It looks like rising coronavirus cases are starting to slow down recovery in many countries," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

Concerns about the US economic outlook started to weigh on the dollar, reversing its inverse correlation with the economic well-being over the past few months.

The dollar index dropped 0.3 percent to its lowest level in nearly two years.

The euro gained 0.3 percent to $1.1693, hitting a 22-month high of $1.16590 as sentiment on the common currency improved after European leaders reached a deal on a recovery fund in a major step towards more fiscal co-operation.

Against the yen, the dollar slipped 0.5 percent to 105.605 yen, a four-month low while the British pound hit a 4 1/2-month high of $1.2832.

Oil prices dipped on worries about the worsening Sino-US relations.

Brent futures fell 0.46 percent to $43.14 per barrel while US crude futures lost 0.44 percent to $41.11.

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News Network
January 24,2020

New Delhi, Jan 24: Under attack for doling out subsidies, Delhi Chief Minister Arvind Kejriwal on Friday said freebies in limited dose are good for the economy as they make more money available to the poor and boosts demand.

Opposition parties have been attacking the AAP-led Delhi government for giving "freebies" ahead of polls after it announced schemes like free bus rides for women and 200 units of free electricity.

"Freebies, in limited dose, are good for economy. It makes more money available to poor, hence boosts demand. However, it should be done in such limits so that no extra taxes have to be imposed and it does not lead to budget deficits," Kejriwal said in a tweet.

Slamming the BJP, Kejriwal said he is happy that the people of Delhi have forced the Saffron party to ask for votes on the basis of CCTVs, schools and unauthorised colonies.

Reacting to a tweet of the BJP Delhi in which Home Minister Amit Shah had asked how many schools have been constructed and cameras installed by the AAP government, Kejriwal said he is happy that Shah saw some CCTV cameras as earlier he had claimed that he could not find a single one.

"I am happy you saw some CCTV cameras. A few days back you said there was not a single camera. Take out some time we will show you our schools also. I am extremely happy that the people of Delhi have changed the politics by which the BJP has to ask for votes on CCTV, schools and raw colonies here," he said in a tweet.

Responding to Shah's allegation that he could not find WiFi in Delhi as promised by Kejriwal and that his battery drained out in the process, the Delhi chief minister said along with free WiFi they have also made arrangement for free charging points.

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