Mexican president's nationalist oil vision fuels standoff with Saudis

(Business News April 12, 2020 / 6:18 AM / Updated 4 hours ago)

MEXICO CITY/DUBAI (Reuters) - The biggest supply cut ever contemplated by the world’s top oil producers is hanging in the balance as a refusal by Mexico’s leftist leader to imperil his plans to rebuild state oil company Pemex has angered the Saudi prince who helped craft the deal.

For the past three days, Mexico has kept the oil industry on tenterhooks by resisting Saudi pressure to sign up to global cuts worth nearly a quarter of output for participating countries, aimed at reviving prices from their lowest level in decades.

Prices have collapsed as the new coronavirus outbreak has shuttered economies around the world and destroyed demand for fuel.

The refusal by President Andres Manuel Lopez Obrador to compromise his plan to revive Pemex by agreeing to steep cuts has shone the global spotlight on Mexico as he prioritizes his domestic agenda over the collective interests of the world’s largest oil producers.

Determined to shore up the money-losing and heavily indebted Petroleos Mexicanos, as Pemex is officially known, Lopez Obrador offered only a cut of 100,000 barrels per day (bpd), rather than the 400,000 bpd the group of global producers sought.

In a compromise hammered out with U.S. President Donald Trump, Lopez Obrador said on Friday the United States had offered to cut an additional 250,000 bpd on Mexico’s behalf, bringing them close to the target.

However, Saudi Arabia - the heavyweight of global oil diplomacy - has balked at that and dug in its heels, despite some other producers from the group of OPEC nations and their allies - known as OPEC+ - calling for the cuts to go ahead regardless.

Lopez Obrador, a staunch advocate of non-intervention in other countries’ affairs, defended his stance on Friday, harking back to a time Mexico was “strong” and “self-sufficient” in oil.

“There were stories in the papers trying to blame us, that there wasn’t a deal because of us,” the 66-year-old president told reporters, adding that Mexico could not afford the 23% production cut asked of it, but had offered 5.5%.

“Mexico is doing its bit.”

Lopez Obrador’s insistence on the importance of rescuing Pemex was crucial in the arguments he used to persuade Trump to help out, a senior Mexican official told Reuters.

Meanwhile, his representative at the OPEC+ talks, Energy Minister Rocio Nahle, upset some other countries, notably the host Saudi Arabia, whose negotiator Prince Abdulaziz bin Salman argued that making exceptions could encourage others to dodge output commitments, according to several delegates.

“If OPEC+ accepted this and everybody who doesn’t like the numbers can just withdraw or leave, then we are in for a really bad time,” said one OPEC source.

The source said Nahle, who only last month signed up to smaller planned cuts, was intransigent over the proposed reductions.

For producers, the cuts are bitter but necessary medicine for low prices. Iraq is relying on oil revenue to rebuild after years of brutal internal conflict, and yet committed to reductions of 1 million bpd.


##https://www.reuters.com/article/us-global-oil-mexico-saudiarabia-analysi/mexican-presidents-nationalist-oil-vision-fuels-standoff-with-saudis-idUSKCN21T0W1

Mexican president's nationalist oil vision fuels standoff with Saudis

(Business News April 12, 2020 / 6:18 AM / Updated 4 hours ago)

MEXICO CITY/DUBAI (Reuters) - The biggest supply cut ever contemplated by the world’s top oil producers is hanging in the balance as a refusal by Mexico’s leftist leader to imperil his plans to rebuild state oil company Pemex has angered the Saudi prince who helped craft the deal.

For the past three days, Mexico has kept the oil industry on tenterhooks by resisting Saudi pressure to sign up to global cuts worth nearly a quarter of output for participating countries, aimed at reviving prices from their lowest level in decades.

Prices have collapsed as the new coronavirus outbreak has shuttered economies around the world and destroyed demand for fuel.

The refusal by President Andres Manuel Lopez Obrador to compromise his plan to revive Pemex by agreeing to steep cuts has shone the global spotlight on Mexico as he prioritizes his domestic agenda over the collective interests of the world’s largest oil producers.

Determined to shore up the money-losing and heavily indebted Petroleos Mexicanos, as Pemex is officially known, Lopez Obrador offered only a cut of 100,000 barrels per day (bpd), rather than the 400,000 bpd the group of global producers sought.

In a compromise hammered out with U.S. President Donald Trump, Lopez Obrador said on Friday the United States had offered to cut an additional 250,000 bpd on Mexico’s behalf, bringing them close to the target.

However, Saudi Arabia - the heavyweight of global oil diplomacy - has balked at that and dug in its heels, despite some other producers from the group of OPEC nations and their allies - known as OPEC+ - calling for the cuts to go ahead regardless.

Lopez Obrador, a staunch advocate of non-intervention in other countries’ affairs, defended his stance on Friday, harking back to a time Mexico was “strong” and “self-sufficient” in oil.

“There were stories in the papers trying to blame us, that there wasn’t a deal because of us,” the 66-year-old president told reporters, adding that Mexico could not afford the 23% production cut asked of it, but had offered 5.5%.

“Mexico is doing its bit.”

Lopez Obrador’s insistence on the importance of rescuing Pemex was crucial in the arguments he used to persuade Trump to help out, a senior Mexican official told Reuters.

Meanwhile, his representative at the OPEC+ talks, Energy Minister Rocio Nahle, upset some other countries, notably the host Saudi Arabia, whose negotiator Prince Abdulaziz bin Salman argued that making exceptions could encourage others to dodge output commitments, according to several delegates.

“If OPEC+ accepted this and everybody who doesn’t like the numbers can just withdraw or leave, then we are in for a really bad time,” said one OPEC source.

The source said Nahle, who only last month signed up to smaller planned cuts, was intransigent over the proposed reductions.

For producers, the cuts are bitter but necessary medicine for low prices. Iraq is relying on oil revenue to rebuild after years of brutal internal conflict, and yet committed to reductions of 1 million bpd.

MEXICAN WALK OUT

Some delegates accused Nahle of hanging up on the other ministers during the video conference, but she pushed back against that on Friday, saying in a Mexican radio interview she had been “respectful of the other countries” and that each government had to consider its own capacity.

“We all lose in this situation: The producing countries lose and even the consumers do too,” she said.


##https://www.reuters.com/article/us-global-oil-mexico-saudiarabia-analysi/mexican-presidents-nationalist-oil-vision-fuels-standoff-with-saudis-idUSKCN21T0W1

Mexican president's nationalist oil vision fuels standoff with Saudis

(Business News April 12, 2020 / 6:18 AM / Updated 4 hours ago)

MEXICO CITY/DUBAI (Reuters) - The biggest supply cut ever contemplated by the world’s top oil producers is hanging in the balance as a refusal by Mexico’s leftist leader to imperil his plans to rebuild state oil company Pemex has angered the Saudi prince who helped craft the deal.

For the past three days, Mexico has kept the oil industry on tenterhooks by resisting Saudi pressure to sign up to global cuts worth nearly a quarter of output for participating countries, aimed at reviving prices from their lowest level in decades.

Prices have collapsed as the new coronavirus outbreak has shuttered economies around the world and destroyed demand for fuel.

The refusal by President Andres Manuel Lopez Obrador to compromise his plan to revive Pemex by agreeing to steep cuts has shone the global spotlight on Mexico as he prioritizes his domestic agenda over the collective interests of the world’s largest oil producers.

Determined to shore up the money-losing and heavily indebted Petroleos Mexicanos, as Pemex is officially known, Lopez Obrador offered only a cut of 100,000 barrels per day (bpd), rather than the 400,000 bpd the group of global producers sought.

In a compromise hammered out with U.S. President Donald Trump, Lopez Obrador said on Friday the United States had offered to cut an additional 250,000 bpd on Mexico’s behalf, bringing them close to the target.

However, Saudi Arabia - the heavyweight of global oil diplomacy - has balked at that and dug in its heels, despite some other producers from the group of OPEC nations and their allies - known as OPEC+ - calling for the cuts to go ahead regardless.

Lopez Obrador, a staunch advocate of non-intervention in other countries’ affairs, defended his stance on Friday, harking back to a time Mexico was “strong” and “self-sufficient” in oil.

“There were stories in the papers trying to blame us, that there wasn’t a deal because of us,” the 66-year-old president told reporters, adding that Mexico could not afford the 23% production cut asked of it, but had offered 5.5%.

“Mexico is doing its bit.”

Lopez Obrador’s insistence on the importance of rescuing Pemex was crucial in the arguments he used to persuade Trump to help out, a senior Mexican official told Reuters.

Meanwhile, his representative at the OPEC+ talks, Energy Minister Rocio Nahle, upset some other countries, notably the host Saudi Arabia, whose negotiator Prince Abdulaziz bin Salman argued that making exceptions could encourage others to dodge output commitments, according to several delegates.

“If OPEC+ accepted this and everybody who doesn’t like the numbers can just withdraw or leave, then we are in for a really bad time,” said one OPEC source.

The source said Nahle, who only last month signed up to smaller planned cuts, was intransigent over the proposed reductions.

For producers, the cuts are bitter but necessary medicine for low prices. Iraq is relying on oil revenue to rebuild after years of brutal internal conflict, and yet committed to reductions of 1 million bpd.

MEXICAN WALK OUT

Some delegates accused Nahle of hanging up on the other ministers during the video conference, but she pushed back against that on Friday, saying in a Mexican radio interview she had been “respectful of the other countries” and that each government had to consider its own capacity.

“We all lose in this situation: The producing countries lose and even the consumers do too,” she said.


##https://www.reuters.com/article/us-global-oil-mexico-saudiarabia-analysi/mexican-presidents-nationalist-oil-vision-fuels-standoff-with-saudis-idUSKCN21T0W1

Well prepare retest next 2 level low......

Soon will retest @ 0.395......

Strong support @ 0.360........

No eye see if break @ 0.315......


** In the short period of time, the price already hit the peak.....

(Only for those retailers willing to listen only, DISCLAIMER)......

The Secret Weapon Giving Mexico Power in the Oil Price War

(April 12, 2020, 1:37 AM GMT+8 Updated on April 12, 2020, 5:22 AM GMT+8)

As Mexico and Saudi Arabia fight over a deal to bring the oil-price war to an end, Mexico has a powerful defense: a massive Wall Street hedge shielding it from low prices.

With talks well into their third day, the Mexican sovereign oil hedge, which insures the Latin American country against low prices and is considered a state secret, is a factor that may make the country less inclined to accept the OPEC+ agreement.

For the last two decades, Mexico has bought so-called Asian style put options from a small group of investment banks and oil companies, in what’s considered Wall Street’s largest -- and most closely guarded -- annual oil deal.

The options give Mexico the right to sell its oil at a predetermined price. They are the equivalent of an insurance policy: the country banks all gains from higher prices but enjoys the security of a minimum floor. So if oil prices remain weak or plunge even further, Mexico will still book higher prices.

The hedge isn’t the only reason Mexico is holding out. But it strengthens the country’s hand and makes it less desperate for a deal than countries whose budgets have been ravaged by the collapse in oil prices since the start of the year -- first because of the coronavirus and then because of the price war launched by Saudi Arabia.

The main reason driving President Andres Manuel Lopez Obrador, a left-wing populist, to resist the deal is his pledge to revive oil production via state-owned Petroleos Mexicanos. Slashing 400,000 barrels a day to comply with the OPEC+ deal, rather than the 100,000 barrels a day that Mexico has counter-offered to Saudi Arabia, would put on hold his ambitious plan to return Pemex to its former glory.

The hedge has shielded Mexico in every downturn over the last 20 years: it made $5.1 billion when prices crashed in 2009 during the global financial crisis, and it received $6.4 billion in 2015 and another $2.7 billion in 2016 after Saudi Arabia waged another price war.
The operation comes at a cost. In recent years, Mexico has spent about $1 billion annually buying the options.

“The insurance policy isn’t cheap,” Mexican Finance Minister Arturo Herrera told broadcaster Televisa on March 10. “But it’s insurance for times like now. Our fiscal budget isn’t going to be hit.”

Pemex, the state-owned company, has its own separate, smaller oil hedge. This year, Pemex hedged 234,000 barrels a day at an average of $49 a barrel.


##https://www.bloomberg.com/news/articles/2020-04-11/the-secret-weapon-that-gives-mexico-power-in-the-oil-price-war?srnd=premium-asia

The Secret Weapon Giving Mexico Power in the Oil Price War

(April 12, 2020, 1:37 AM GMT+8 Updated on April 12, 2020, 5:22 AM GMT+8)

As Mexico and Saudi Arabia fight over a deal to bring the oil-price war to an end, Mexico has a powerful defense: a massive Wall Street hedge shielding it from low prices.

With talks well into their third day, the Mexican sovereign oil hedge, which insures the Latin American country against low prices and is considered a state secret, is a factor that may make the country less inclined to accept the OPEC+ agreement.

For the last two decades, Mexico has bought so-called Asian style put options from a small group of investment banks and oil companies, in what’s considered Wall Street’s largest -- and most closely guarded -- annual oil deal.

The options give Mexico the right to sell its oil at a predetermined price. They are the equivalent of an insurance policy: the country banks all gains from higher prices but enjoys the security of a minimum floor. So if oil prices remain weak or plunge even further, Mexico will still book higher prices.

The hedge isn’t the only reason Mexico is holding out. But it strengthens the country’s hand and makes it less desperate for a deal than countries whose budgets have been ravaged by the collapse in oil prices since the start of the year -- first because of the coronavirus and then because of the price war launched by Saudi Arabia.

The main reason driving President Andres Manuel Lopez Obrador, a left-wing populist, to resist the deal is his pledge to revive oil production via state-owned Petroleos Mexicanos. Slashing 400,000 barrels a day to comply with the OPEC+ deal, rather than the 100,000 barrels a day that Mexico has counter-offered to Saudi Arabia, would put on hold his ambitious plan to return Pemex to its former glory.

The hedge has shielded Mexico in every downturn over the last 20 years: it made $5.1 billion when prices crashed in 2009 during the global financial crisis, and it received $6.4 billion in 2015 and another $2.7 billion in 2016 after Saudi Arabia waged another price war.
The operation comes at a cost. In recent years, Mexico has spent about $1 billion annually buying the options.

“The insurance policy isn’t cheap,” Mexican Finance Minister Arturo Herrera told broadcaster Televisa on March 10. “But it’s insurance for times like now. Our fiscal budget isn’t going to be hit.”

Pemex, the state-owned company, has its own separate, smaller oil hedge. This year, Pemex hedged 234,000 barrels a day at an average of $49 a barrel.

State Secret

Mexico has disclosed very few details about its insurance for 2020 after it declared the sovereign hedge a state secret. However, based on limited public information, alongside historical data about previous years, it’s possible to make a rough estimate of the potential payout if prices remain low.

The government told lawmakers it has guaranteed revenues to support the assumptions for oil prices made in the country’s budget -- of $49 a barrel for the Mexican oil export basket, equivalent to about $60-$65 a barrel for Brent crude.

It locks in that revenue via two elements: the hedge, and the country’s oil stabilization fund. The fund historically has only provided $2-$5 a barrel, so it’s realistic to assume that Mexico hedged at $45 a barrel at least for its crude. In the past, Mexico has hedged around 250 million barrels, equal to nearly all its net oil exports in an operation that runs from Dec. 1 to Nov. 30.


##https://www.bloomberg.com/news/articles/2020-04-11/the-secret-weapon-that-gives-mexico-power-in-the-oil-price-war?srnd=premium-asia

The Secret Weapon Giving Mexico Power in the Oil Price War

(April 12, 2020, 1:37 AM GMT+8 Updated on April 12, 2020, 5:22 AM GMT+8)

As Mexico and Saudi Arabia fight over a deal to bring the oil-price war to an end, Mexico has a powerful defense: a massive Wall Street hedge shielding it from low prices.

With talks well into their third day, the Mexican sovereign oil hedge, which insures the Latin American country against low prices and is considered a state secret, is a factor that may make the country less inclined to accept the OPEC+ agreement.

For the last two decades, Mexico has bought so-called Asian style put options from a small group of investment banks and oil companies, in what’s considered Wall Street’s largest -- and most closely guarded -- annual oil deal.

The options give Mexico the right to sell its oil at a predetermined price. They are the equivalent of an insurance policy: the country banks all gains from higher prices but enjoys the security of a minimum floor. So if oil prices remain weak or plunge even further, Mexico will still book higher prices.

The hedge isn’t the only reason Mexico is holding out. But it strengthens the country’s hand and makes it less desperate for a deal than countries whose budgets have been ravaged by the collapse in oil prices since the start of the year -- first because of the coronavirus and then because of the price war launched by Saudi Arabia.

The main reason driving President Andres Manuel Lopez Obrador, a left-wing populist, to resist the deal is his pledge to revive oil production via state-owned Petroleos Mexicanos. Slashing 400,000 barrels a day to comply with the OPEC+ deal, rather than the 100,000 barrels a day that Mexico has counter-offered to Saudi Arabia, would put on hold his ambitious plan to return Pemex to its former glory.

The hedge has shielded Mexico in every downturn over the last 20 years: it made $5.1 billion when prices crashed in 2009 during the global financial crisis, and it received $6.4 billion in 2015 and another $2.7 billion in 2016 after Saudi Arabia waged another price war.
The operation comes at a cost. In recent years, Mexico has spent about $1 billion annually buying the options.

“The insurance policy isn’t cheap,” Mexican Finance Minister Arturo Herrera told broadcaster Televisa on March 10. “But it’s insurance for times like now. Our fiscal budget isn’t going to be hit.”

Pemex, the state-owned company, has its own separate, smaller oil hedge. This year, Pemex hedged 234,000 barrels a day at an average of $49 a barrel.


##https://www.bloomberg.com/news/articles/2020-04-11/the-secret-weapon-that-gives-mexico-power-in-the-oil-price-war?srnd=premium-asia

The Secret Weapon Giving Mexico Power in the Oil Price War

(April 12, 2020, 1:37 AM GMT+8 Updated on April 12, 2020, 5:22 AM GMT+8)

As Mexico and Saudi Arabia fight over a deal to bring the oil-price war to an end, Mexico has a powerful defense: a massive Wall Street hedge shielding it from low prices.

With talks well into their third day, the Mexican sovereign oil hedge, which insures the Latin American country against low prices and is considered a state secret, is a factor that may make the country less inclined to accept the OPEC+ agreement.

For the last two decades, Mexico has bought so-called Asian style put options from a small group of investment banks and oil companies, in what’s considered Wall Street’s largest -- and most closely guarded -- annual oil deal.

The options give Mexico the right to sell its oil at a predetermined price. They are the equivalent of an insurance policy: the country banks all gains from higher prices but enjoys the security of a minimum floor. So if oil prices remain weak or plunge even further, Mexico will still book higher prices.

The hedge isn’t the only reason Mexico is holding out. But it strengthens the country’s hand and makes it less desperate for a deal than countries whose budgets have been ravaged by the collapse in oil prices since the start of the year -- first because of the coronavirus and then because of the price war launched by Saudi Arabia.

The main reason driving President Andres Manuel Lopez Obrador, a left-wing populist, to resist the deal is his pledge to revive oil production via state-owned Petroleos Mexicanos. Slashing 400,000 barrels a day to comply with the OPEC+ deal, rather than the 100,000 barrels a day that Mexico has counter-offered to Saudi Arabia, would put on hold his ambitious plan to return Pemex to its former glory.

The hedge has shielded Mexico in every downturn over the last 20 years: it made $5.1 billion when prices crashed in 2009 during the global financial crisis, and it received $6.4 billion in 2015 and another $2.7 billion in 2016 after Saudi Arabia waged another price war.
The operation comes at a cost. In recent years, Mexico has spent about $1 billion annually buying the options.

“The insurance policy isn’t cheap,” Mexican Finance Minister Arturo Herrera told broadcaster Televisa on March 10. “But it’s insurance for times like now. Our fiscal budget isn’t going to be hit.”

Pemex, the state-owned company, has its own separate, smaller oil hedge. This year, Pemex hedged 234,000 barrels a day at an average of $49 a barrel.

State Secret

Mexico has disclosed very few details about its insurance for 2020 after it declared the sovereign hedge a state secret. However, based on limited public information, alongside historical data about previous years, it’s possible to make a rough estimate of the potential payout if prices remain low.

The government told lawmakers it has guaranteed revenues to support the assumptions for oil prices made in the country’s budget -- of $49 a barrel for the Mexican oil export basket, equivalent to about $60-$65 a barrel for Brent crude.

It locks in that revenue via two elements: the hedge, and the country’s oil stabilization fund. The fund historically has only provided $2-$5 a barrel, so it’s realistic to assume that Mexico hedged at $45 a barrel at least for its crude. In the past, Mexico has hedged around 250 million barrels, equal to nearly all its net oil exports in an operation that runs from Dec. 1 to Nov. 30.

Using all those elements, a rough calculation suggests that if the Mexican oil export basket were to remain at current levels, the country would receive a multi-billion dollar payout. Since December, the Mexican oil basket has averaged $42 a barrel.

If current low prices for Mexican oil continue until the end of November, the average would drop to just above $20 a barrel, and the hedge would pay out close to $6 billion, according to Bloomberg News calculations.

Representatives of the Finance Ministry and Energy Ministry declined to comment.

##https://www.bloomberg.com/news/articles/2020-04-11/the-secret-weapon-that-gives-mexico-power-in-the-oil-price-war?srnd=premium-asia

The Secret Weapon Giving Mexico Power in the Oil Price War

(April 12, 2020, 1:37 AM GMT+8 Updated on April 12, 2020, 5:22 AM GMT+8)

As Mexico and Saudi Arabia fight over a deal to bring the oil-price war to an end, Mexico has a powerful defense: a massive Wall Street hedge shielding it from low prices.

With talks well into their third day, the Mexican sovereign oil hedge, which insures the Latin American country against low prices and is considered a state secret, is a factor that may make the country less inclined to accept the OPEC+ agreement.

For the last two decades, Mexico has bought so-called Asian style put options from a small group of investment banks and oil companies, in what’s considered Wall Street’s largest -- and most closely guarded -- annual oil deal.

The options give Mexico the right to sell its oil at a predetermined price. They are the equivalent of an insurance policy: the country banks all gains from higher prices but enjoys the security of a minimum floor. So if oil prices remain weak or plunge even further, Mexico will still book higher prices.

The hedge isn’t the only reason Mexico is holding out. But it strengthens the country’s hand and makes it less desperate for a deal than countries whose budgets have been ravaged by the collapse in oil prices since the start of the year -- first because of the coronavirus and then because of the price war launched by Saudi Arabia.

The main reason driving President Andres Manuel Lopez Obrador, a left-wing populist, to resist the deal is his pledge to revive oil production via state-owned Petroleos Mexicanos. Slashing 400,000 barrels a day to comply with the OPEC+ deal, rather than the 100,000 barrels a day that Mexico has counter-offered to Saudi Arabia, would put on hold his ambitious plan to return Pemex to its former glory.

The hedge has shielded Mexico in every downturn over the last 20 years: it made $5.1 billion when prices crashed in 2009 during the global financial crisis, and it received $6.4 billion in 2015 and another $2.7 billion in 2016 after Saudi Arabia waged another price war.
The operation comes at a cost. In recent years, Mexico has spent about $1 billion annually buying the options.

“The insurance policy isn’t cheap,” Mexican Finance Minister Arturo Herrera told broadcaster Televisa on March 10. “But it’s insurance for times like now. Our fiscal budget isn’t going to be hit.”

Pemex, the state-owned company, has its own separate, smaller oil hedge. This year, Pemex hedged 234,000 barrels a day at an average of $49 a barrel.

State Secret

Mexico has disclosed very few details about its insurance for 2020 after it declared the sovereign hedge a state secret. However, based on limited public information, alongside historical data about previous years, it’s possible to make a rough estimate of the potential payout if prices remain low.

The government told lawmakers it has guaranteed revenues to support the assumptions for oil prices made in the country’s budget -- of $49 a barrel for the Mexican oil export basket, equivalent to about $60-$65 a barrel for Brent crude.

It locks in that revenue via two elements: the hedge, and the country’s oil stabilization fund. The fund historically has only provided $2-$5 a barrel, so it’s realistic to assume that Mexico hedged at $45 a barrel at least for its crude. In the past, Mexico has hedged around 250 million barrels, equal to nearly all its net oil exports in an operation that runs from Dec. 1 to Nov. 30.

Using all those elements, a rough calculation suggests that if the Mexican oil export basket were to remain at current levels, the country would receive a multi-billion dollar payout. Since December, the Mexican oil basket has averaged $42 a barrel.

If current low prices for Mexican oil continue until the end of November, the average would drop to just above $20 a barrel, and the hedge would pay out close to $6 billion, according to Bloomberg News calculations.

Representatives of the Finance Ministry and Energy Ministry declined to comment.

##https://www.bloomberg.com/news/articles/2020-04-11/the-secret-weapon-that-gives-mexico-power-in-the-oil-price-war?srnd=premium-asia

Humanity Perception & Right.............

Now I know why Warren Buffet always Warren Buffet.....No matter sunny day or rainy day...

Now I know why farmers always farmers...No matter drought season or inundation incident...


** In fact I fall in love this title......

Why "A" Students Work for "C" Students and Why "B" Students Work for the GovernGovernment - author by Robert T. Kiyosaki


^^ So "C" students Work for "Who".....!!!!!!

"People have to remember that, if you wait around for these theme parks (Disney Theme Park) to go back to full scale, up and running, with everything, all the people coming back, the stocks will have already bounced,” Maley added. “Always remember that the stocks always bounce long before the fundamentals go back to normal.”


##https://www.cnbc.com/2020/04/03/disney-shares-are-a-buy-if-they-fall-to-this-level-technical-analyst-says.html?&qsearchterm=matt



^^^I personally like this fund manager comment.......brilliant........

Aiyoooo......I saw so many members here misleading about ICPS conversion until I tak boleh tahan to guide you all how to convert it


Assuming you have 300,000 ICPS, so what can I do ??

Option 1 :- Surrender ICPS

NO conversion cost involved, just surrender 300,000 share of ICPS into mother share, which mean you entitled of 100,000 VC share

(surrender cost only RM 20)


Option 2 :- Cash Conversion ICPS

300,000 x RM 0.10 per share = RM 30,000, after you pay this conversion cost of RM 30,000 then you entitled of 300,000 share of VC


** What happen if I don't want to do anything of this ICPS until maturity ???

Simple, at the end of maturity, all ICPS will be automatically surrender into VC mother share



^^^^So if you own ICPS, which option you more prefer for the current situation !!!............



@@@ The whole process (no matter Option 1 or 2), will take about 8 ~ 10 trading days & handled by Tricor Services (M) S/B (must submit the form as well)

Perhaps intends to place at money market roll over to help up BNM exhausted liquidity......

Please advice, sure got a lot of followers.....

Perhaps intends to buy Cagamas Note......

Perhaps intends to invest in Gold Bar (safe heaven)......

So now intends to invest which counter after disposed all??

Students "A" still working hard for more $$$...

Students "B" still working relax for more $$$...

Students "C" still working smart for more $$$...


No DIFFERENT.....IF no different what for need to become Students "C" !!!.......................

Where got tsunami oorr !!!.....

Already 50% retracement pun tak nampak ???.....

Perhaps you can call all taikor here to make it happening ......


kekeke...kekeke...kekeke....



Posted by KAQ4468 > Apr 11, 2020 2:06 PM | Report Abuse

Another tsunami coming ???

l foresee very close to peak price ready for short period of this time...

Most likely will adjust pricing in the coming week...

So long as not dip below 0.86 then got chance rebound back between 1.10 ~ 1.20 between...

Humanity Perception & Right.............     

Now I know why Warren Buffet always Warren Buffet.....No matter sunny day or rainy day...     

Now I know why farmers always farmers...No matter drought season or inundation incident...     


** In fact I fall in love this title......     

Why "A" Students Work for "C" Students and Why "B" Students Work for the GovernGovernment - author by Robert T. Kiyosaki     


^^ So "C" students Work for "Who".....!!!!!!

Trump says he’s not going to reopen economy ‘until we know this country is going to be healthy’

(PUBLISHED FRI, APR 10 20202:50 PM EDTUPDATED 4 HOURS AGO)


~ President Donald Trump said on Friday that he will not reopen the economy “until we know this country is going to be healthy.”

~ Trump said he also plans to announce an “Opening our Country Council” on Tuesday comprised of business leaders and doctors and potentially governors that will help determine how to reopen the economy.

~ The U.S. Department of Health and Human Services reportedly projected that lifting stay-at-home orders, school closures and social distancing after just 30 days would lead to an infection spike this summer.

President Donald Trump said on Friday that he will not reopen the economy “until we know this country is going to be healthy.”

The U.S. Department of Health and Human Services reportedly projected that lifting stay-at-home orders, school closures and social distancing after just 30 days would lead to an infection spike this summer, according to documents first reported by The New York Times.

When asked whether Trump had seen federal projections that the coronavirus could resurge if the 30-day shelter-in-place orders were lifted, he said he had not seen the projections.

“We’re looking at a date, we hope we’ll be able to fulfill a certain date, but we’re not doing anything until we know this country is going to be healthy,” Trump said during a White House press briefing. “We don’t want to go back and start doing it over again, even though it would be in a smaller scale.”

Trump said he also plans to announce an “Opening our Country Council” on Tuesday comprised of business leaders and doctors and potentially governors that will help determine how to reopen the economy.

“I’ve gained great respect for governors, both Republican and Democrat. I’ve actually become friends with some of the Democrat governors that I wouldn’t have really had the privilege of getting to know,” Trump said.

He added that he wants the states’ governors to ultimately decide whether to reopen parts of the country, but said he has “great authority” if he wanted to use it and said the question of when to ease social distancing restrictions will be “the biggest decision” he’s ever made.

“I don’t know that I’ve had a bigger decision, but I’m going to surround myself with the greatest minds, not only the greatest minds, but the greatest minds in numerous different businesses, including the business of politics and reason, and we’re going to make a decision,” Trump said, adding that, “Hopefully it’s going to be the right decision.”

Trump said that he would be open to reshuttering the U.S. economy if it were opened initially but another outbreak of COVID-19 cases followed.

“I want to get it open as soon as possible. This country was meant to be open and vibrant...” Trump said. “I would love to open it, I’m not determined to anything. The facts will determine what I do, but we do want to get the country open.”

Dr. Anthony Fauci, White House health advisor, said that whenever governments begin to pull back restrictions, there could be a resurgence in new cases. The goal at that point would be to quickly identify new cases, isolate infected people and contact trace, or determine the origin of infection.

“When we decide at a proper time when we’re going to be relaxing some of the restrictions, there’s not doubt you’re going to see cases, Fauci said. “I’d be surprised if we didn’t see cases. The question is how do you respond to them.”


##https://www.cnbc.com/2020/04/10/trump-says-hes-not-going-to-reopen-economy-until-we-know-this-country-is-going-to-be-healthy.html

I'm still holding this counter, shall I buy some more ???......

Yes, of course...No harm.......................................


Let this "Orang Tua" give you riddle...........


Why "A" Students Work for "C" Students and Why "B" Students Work for the GovernGovernment - author by Robert T. Kiyosaki


^^ So "C" students Work for "Who".....!!!!!!

In fact Dato no intention to join the board / board tussle....

In fact Dato no intention to injection current biz into this company....

In fact Dato got other plan why bought some share for this company....

Very soon you all definitely know......kekeke...kekeke...kekeke......

Why regret Monday!!!!...

Tel me why !!!..........

Let this little orang tua learn something.......

Tell me why I need to regret !!!................

Humanity Perception & Right.............    

Now I know why Warren Buffet always Warren Buffet.....No matter sunny day or rainy day...    

Now I know why farmers always farmers...No matter drought season or inundation incident...    


** In fact I fall in love this title......    

Why "A" Students Work for "C" Students and Why "B" Students Work for the GovernGovernment - author by Robert T. Kiyosaki    


^^ So "C" students Work for "Who".....!!!!!!

Humanity Perception & Right.............    

Now I know why Warren Buffet always Warren Buffet.....No matter sunny day or rainy day...    

Now I know why farmers always farmers...No matter drought season or inundation incident...    


** In fact I fall in love this title......    

Why "A" Students Work for "C" Students and Why "B" Students Work for the GovernGovernment - author by Robert T. Kiyosaki    


^^ So "C" students Work for "Who".....!!!!!!

Aiyoyoyo....

Today is Good Friday lahhh....Western Country all holiday lahhh...

Humanity Perception & Right.............   

Now I know why Warren Buffet always Warren Buffet.....No matter sunny day or rainy day...   

Now I know why farmers always farmers...No matter drought season or inundation incident...   


** In fact I fall in love this title......   

Why "A" Students Work for "C" Students and Why "B" Students Work for the GovernGovernment - author by Robert T. Kiyosaki   


^^ So "C" students Work for "Who".....!!!!!!

@XiaYiDao...How is your Genting & Maybank share?

Still holding? or reload some more?

Let this little "Golden Finger" orang tua join the battle next week...

Seem like more excited next week....kekeke....

You know why today not much downside risk !!!!.....

Lucky today is Good Friday.....Most of the foreign fund holidays...

Next week come back definitely have good show to KLCI..................

RIP..............

Aiyo...definitely will extend lahh....

You don't know mehhh....

Recently done the survey from 27,000 ppl....88% voice out more prefer extension of MCO lahhh....(yesterday news already come out lahhh...)

That's why this morning suddenly KLCI plummetted...........

Aiyo...definitely will extend lahh....

You don't know mehhh....

Recently done the survey from 27,000 ppl....88% voice out more prefer extension of MCO lahhh....(yesterday news already come out lahhh...)

That's why this morning suddenly KLCI plummetted...........

Aiyo...definitely will extend lahh....

You don't know mehhh....

Recently done the survey from 27,000 ppl....88% voice out more prefer extension of MCO lahhh....(yesterday news already come out lahhh...)

That's why this morning suddenly KLCI plummetted...........

Aiyo....Nowadays got offer margin account mahhh....

No need worry lahhh..........................

Bet until maximum to fight lorrr.............

Now SC also come out & voice out.............

Advice IB don't simply margin call mahhh.....

So nothing to worry liao.......................

You know why Saudi now more aggressive.....

Because just wake up from last month.......

Since Russian put more pressure & threaten.....

Now Saudi want to reign the oil market share & status....

Soon foresee 1 more "BIG" now of production & price war".....

Aiyo....

Where got goreng !!!.......

Because DGB NO issue "IRREDEEMABLE CONVERTIBLE PREFERENCE SHARES".......

Don't dream lahhh...........

Coronavirus: US weekly jobless claims hit 6.6 million

The number of Americans seeking unemployment benefits has surged for a third week as the economic toll tied to the coronavirus pandemic intensifies.

More than 6.6 million people filed jobless claims in the week ending 4 April, the Department of Labor said.

To shore up the economy, the Federal Reserve said it would unleash an additional $2.3tn in lending.

The deepening economic crisis comes as the number of virus cases in the US soars to more than 430,000.

Over the last three weeks, more than 16 million people have made unemployment claims, as restrictions on activity to help contain the virus force most businesses to close and put about 95% of Americans on some form of lockdown.

"Today's report continues to reflect the personal sacrifice being made by America's workers and their families to slow the spread of the coronavirus," Labor Secretary Eugene Scalia said.

The surging joblessness is a stark reversal for the world's biggest economy where the unemployment rate had been hovering around 3.5%. Economists now expect that rate has hit the double digits.

The crisis has prompted dramatic government relief efforts.

The central bank programmes on Thursday, which include loans to local governments, are the latest actions by the Fed, which has also slashed interest rates, eased banking regulations and announced other programmes aimed at supporting home loans, currency markets and small businesses.

Fed Chairman Jerome Powell said the bank is using its emergency powers to "unprecedented extent".

"We will continue to use these powers forcefully, proactively and aggressively until we're solidly on the way to recovery," he said.

The US Congress has also passed a roughly $2tn rescue bill, which funds direct payment for households, assistance for businesses and increased unemployment benefits. Lawmakers are now discussing further relief.

But the number of people and firms seeking assistance has overwhelmed rescue efforts so far.

In New York, Lou Benavides, who works in the music industry, has tried for weeks to register for jobless benefits, but cannot reach the Labor Department to finish processing his claim.

"There was one day when I made like 300 calls," he said. "I still have not spoken to a human being."


##https://www.bbc.com/news/business-52231929

Are you ready for afternoon battle !!!........

More & more downside risk in the afternoon today.......

Today afternoon will be announced whether MCO will be extended or not....

But I personally perceive that will extend lahhh......

So after announcement, KLCI will be more painful today afternoon.....

Be alert...be well prepare..........................

Should Malaysia extend MCO?

(The Edge Financial Daily April 10, 2020 07:54 am +08)

KUALA LUMPUR: A day before the government is due to decide on whether to extend the movement control order (MCO) beyond April 14, two medical bodies have taken different positions on the matter.

While the Malaysian Medical Association (MMA) has called for the relaxation of the MCO, the Academy of Medicine of Malaysia (AMM) said the measures should be extended until Hari Raya Aidilfitri at end-May or even beyond that.

Both groups, however, agreed on the need to ease the socio-economic repercussions of the Covid-19 pandemic.

The MMA, in a statement yesterday, said the government should find a balance between enforcing measures to fight the virus, while also mitigating the economic impact of the pandemic.

While the MCO is targeted at limiting the spread of the virus by significantly reducing the contact between people, the association noted that such measures will have a severe economic impact.

“The longer it is in force, the worse the socio-economic damage will be. The authorities will have to find a balance between controlling the spread of the disease and avoiding irreparable economic damage,” it said.

The association quoted the World Health Organization (WHO) which had previously urged countries to balance the possible benefits and negative consequences of measures to be imposed and deploy strategies to encourage community engagement, gain trust and limit social or economic harm.

WHO had proposed organising worksites to ensure physical distance between persons, such as staggering shifts over time or converting on-site service to home delivery to keep more businesses open.

The MMA said the disruption of social activities, gainful employment, job losses and bankruptcies will have to be tempered with support for small businesses and the people, as no jobs means no income, which would mean that many would be hard pressed to survive prolonged MCOs or long-term lockdowns.

“It is likely that a stepwise relaxation of movement control will be the way forward. For instance, businesses may be allowed to operate with strict guidelines on how many people can be on the premises. Public transport may have to operate with limited loads, with frequent disinfection. Solitary public exercise will have to be permitted, to allow for mental and physical health issues.

“In all cases, strict hand hygiene and physical distancing must be observed, with masks if necessary. Interstate travel may need to be restricted, but will have to be prioritised for economic needs rather than personal,” said the association.

However, the association said large group congregations will have to be restricted still, until the likelihood of community viral spread comes down consistently, which might take months to years.

While movement control may be relaxed, diagnosis, isolation and treatment of Covid-19 patients cannot be let up and that point of care rapid tests, such as those for dengue and influenza, will need to be evaluated and made available within a few weeks.

“We will need to look into those who have been cured or who have protective antibodies, so that perhaps these convalescent people might get ‘certificates of infection and cure’, and therefore, be allowed to return quickly to society: to work, to pursue business, to study etc.

“This is being explored in Germany and northern European nations right now,” the MMA said.

Separately, the AMM said the Covid-19 pandemic has made it necessary for social distancing to be the new norm for a period of time until the situation is well under control.

“The risks of spreading the virus particularly to the elderly, in the case of a ‘balik kampung’ exodus, are very real,” the AAM said in a statement reported by Bernama.

“Risks associated with crowding at R&R stations and hence the failure of social distancing by travellers during this exodus and their subsequent return to urban areas will also need to be taken into consideration.

“For this year at least, be it Ramadan, Aidilfitri or even Haj gatherings — there is a need for control, monitoring and possible banning of these gatherings,” it added.

Stressing that the war against Covid-19 is far from over, the AMM said many sacrifices have been and will continue to be made this year.

“Let us show the world that Malaysians can exercise restraint as a nation and bring the war to a favourable close,” it said.

The group, however, also emphasised the need for the government to strengthen plans to ease the socio-economic repercussions of Covid-19, saying this will continue to have a major negative impact on all aspects of the Malaysian economy.

This, it added, is why “robust whole-of-government and whole-of-society approaches” are needed.

The MCO was initially enforced until March 31, but extended to April 14.


##https://www.theedgemarkets.com/article/should-malaysia-extend-mco

Today just started to correct bear market rally.....

No need so fast bet in at this level................

Next week more value to see.........................

Bear market rally will be ended soon for correction territory....

Definitely will be moving 1308 ~ 1332 range soon................

Saudi-Russia Oil Deal Under Threat as Mexico Walks Out of OPEC+ Talks

(April 9, 2020, 11:14 PM GMT+8 Updated on April 10, 2020, 7:43 AM GMT+8)

An agreement between Saudi Arabia and Russia for record oil-production cuts was endangered late on Thursday as Mexico refused to participate in the curbs and left the meeting without approving the deal.

Ministers will continue to discuss ways to secure the Latin American country’s approval on Friday, delegates said. The situation, which came after more than 9 hours of talks via video link, cast doubt over a global effort to revive the oil market from a debilitating coronavirus-induced slump.

Earlier on Thursday, OPEC+ had tentatively agreed to cut production by about 10 million barrels a day in May and June, delegates said. Saudi Arabia and Russia, the biggest producers in the group, would each take output down to about 8.5 million a day, with all members agreeing to cut supply by 23%, one delegate said.

Attention should have turned on Friday to the Group of 20 energy ministers meeting. A contribution from major producers including the U.S. and Canada -- possibly as much as 5 million barrels a day of further supply reductions -- could boost efforts to revive prices after the initial OPEC+ agreement failed to push crude higher on Thursday.

The dogged refusal of Mexico’s Energy Secretary Rocio Nahle Garcia to accept the production level proposed for her country as part of the deal upended that schedule.

Political Pressure

The unexpected setback doesn’t change the urgent need for the Organization of Petroleum Exporting Countries and its allies to reduce production. Oil’s spectacular price crash this year has threatened the stability of oil-dependent nations, forced major companies such as Exxon Mobil Corp. to rein in spending and risked the very existence of small independents.

The cartel has been put under intense pressure by President Donald Trump -- who spoke with the leaders of Russia and Saudi Arabia by phone on Thursday -- and American lawmakers, who fear thousands of job losses in the U.S. shale patch.

“Both Saudi and Russia were going to have to cut anyway, and these cuts allow them to win political points too,” said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd.

While the headline cut equates to a reduction of about 10% of global supply, it makes up just a fraction of the demand loss, which some traders estimate at as much as 35 million barrels a day.

Brent dropped 4.1% to $31.48 a barrel in London. Prices have tumbled by half this year as the spread of the coronavirus coincided with a bitter price war that saw producers flood the market.

“Covid-19 is an unseen beast that seems to be impacting everything in its path,” Mohammad Barkindo, secretary-general of the Organization of Petroleum Exporting Countries, said in a speech at the online gathering. “The supply and demand fundamentals are horrifying” and the expected oversupply, particularly in the second quarter, is “beyond anything we have seen before.”

Barkindo urged action to tackle the growing surplus, which he estimated at 14.7 million barrels a day in the second quarter. And he wants action not only from OPEC+ producers but from nations beyond the alliance.

Russia has insisted that the U.S. in particular do more than just let market forces reduce its record production. Trump, meanwhile, has said America’s cut will happen “automatically” as low prices put shale in dire straits, a sentiment reiterated by his energy secretary on Thursday.

America welcomed the OPEC+ cuts, saying it would send a signal that all major oil-producing countries will respond in an orderly manner to market realities caused by the virus, a senior administration official said.


##https://www.bloomberg.com/news/articles/2020-04-09/opec-agrees-on-deep-oil-output-cuts-to-fight-market-slump?srnd=premium-asia

Saudi-Russia Oil Deal Under Threat as Mexico Walks Out of OPEC+ Talks

(April 9, 2020, 11:14 PM GMT+8 Updated on April 10, 2020, 7:43 AM GMT+8)

An agreement between Saudi Arabia and Russia for record oil-production cuts was endangered late on Thursday as Mexico refused to participate in the curbs and left the meeting without approving the deal.

Ministers will continue to discuss ways to secure the Latin American country’s approval on Friday, delegates said. The situation, which came after more than 9 hours of talks via video link, cast doubt over a global effort to revive the oil market from a debilitating coronavirus-induced slump.

Earlier on Thursday, OPEC+ had tentatively agreed to cut production by about 10 million barrels a day in May and June, delegates said. Saudi Arabia and Russia, the biggest producers in the group, would each take output down to about 8.5 million a day, with all members agreeing to cut supply by 23%, one delegate said.

Attention should have turned on Friday to the Group of 20 energy ministers meeting. A contribution from major producers including the U.S. and Canada -- possibly as much as 5 million barrels a day of further supply reductions -- could boost efforts to revive prices after the initial OPEC+ agreement failed to push crude higher on Thursday.

The dogged refusal of Mexico’s Energy Secretary Rocio Nahle Garcia to accept the production level proposed for her country as part of the deal upended that schedule.

Political Pressure

The unexpected setback doesn’t change the urgent need for the Organization of Petroleum Exporting Countries and its allies to reduce production. Oil’s spectacular price crash this year has threatened the stability of oil-dependent nations, forced major companies such as Exxon Mobil Corp. to rein in spending and risked the very existence of small independents.

The cartel has been put under intense pressure by President Donald Trump -- who spoke with the leaders of Russia and Saudi Arabia by phone on Thursday -- and American lawmakers, who fear thousands of job losses in the U.S. shale patch.

“Both Saudi and Russia were going to have to cut anyway, and these cuts allow them to win political points too,” said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd.

While the headline cut equates to a reduction of about 10% of global supply, it makes up just a fraction of the demand loss, which some traders estimate at as much as 35 million barrels a day.

Brent dropped 4.1% to $31.48 a barrel in London. Prices have tumbled by half this year as the spread of the coronavirus coincided with a bitter price war that saw producers flood the market.

“Covid-19 is an unseen beast that seems to be impacting everything in its path,” Mohammad Barkindo, secretary-general of the Organization of Petroleum Exporting Countries, said in a speech at the online gathering. “The supply and demand fundamentals are horrifying” and the expected oversupply, particularly in the second quarter, is “beyond anything we have seen before.”

Barkindo urged action to tackle the growing surplus, which he estimated at 14.7 million barrels a day in the second quarter. And he wants action not only from OPEC+ producers but from nations beyond the alliance.

Russia has insisted that the U.S. in particular do more than just let market forces reduce its record production. Trump, meanwhile, has said America’s cut will happen “automatically” as low prices put shale in dire straits, a sentiment reiterated by his energy secretary on Thursday.

America welcomed the OPEC+ cuts, saying it would send a signal that all major oil-producing countries will respond in an orderly manner to market realities caused by the virus, a senior administration official said.

Tapering Off

OPEC+’s tentative plan would see the output curbs tapering off after two months, depending on the evolution of the coronavirus. The 10 million-barrel-a-day cut may shrink to 8 million a day from July and then 6 million a day from January 2021, according to one delegate.

Saudi Arabia will apply its reduction to a production level of about 11 million barrels a day, a delegate said. That’s lower than recent output levels, which rose above 12 million a day in early April. Russia would curb its supply by a similar level.


##https://www.bloomberg.com/news/articles/2020-04-09/opec-agrees-on-deep-oil-output-cuts-to-fight-market-slump?srnd=premium-asia

Saudi-Russia Oil Deal Under Threat as Mexico Walks Out of OPEC+ Talks

(April 9, 2020, 11:14 PM GMT+8 Updated on April 10, 2020, 7:43 AM GMT+8)

An agreement between Saudi Arabia and Russia for record oil-production cuts was endangered late on Thursday as Mexico refused to participate in the curbs and left the meeting without approving the deal.

Ministers will continue to discuss ways to secure the Latin American country’s approval on Friday, delegates said. The situation, which came after more than 9 hours of talks via video link, cast doubt over a global effort to revive the oil market from a debilitating coronavirus-induced slump.

Earlier on Thursday, OPEC+ had tentatively agreed to cut production by about 10 million barrels a day in May and June, delegates said. Saudi Arabia and Russia, the biggest producers in the group, would each take output down to about 8.5 million a day, with all members agreeing to cut supply by 23%, one delegate said.

Attention should have turned on Friday to the Group of 20 energy ministers meeting. A contribution from major producers including the U.S. and Canada -- possibly as much as 5 million barrels a day of further supply reductions -- could boost efforts to revive prices after the initial OPEC+ agreement failed to push crude higher on Thursday.

The dogged refusal of Mexico’s Energy Secretary Rocio Nahle Garcia to accept the production level proposed for her country as part of the deal upended that schedule.

Political Pressure

The unexpected setback doesn’t change the urgent need for the Organization of Petroleum Exporting Countries and its allies to reduce production. Oil’s spectacular price crash this year has threatened the stability of oil-dependent nations, forced major companies such as Exxon Mobil Corp. to rein in spending and risked the very existence of small independents.

The cartel has been put under intense pressure by President Donald Trump -- who spoke with the leaders of Russia and Saudi Arabia by phone on Thursday -- and American lawmakers, who fear thousands of job losses in the U.S. shale patch.

“Both Saudi and Russia were going to have to cut anyway, and these cuts allow them to win political points too,” said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd.

While the headline cut equates to a reduction of about 10% of global supply, it makes up just a fraction of the demand loss, which some traders estimate at as much as 35 million barrels a day.

Brent dropped 4.1% to $31.48 a barrel in London. Prices have tumbled by half this year as the spread of the coronavirus coincided with a bitter price war that saw producers flood the market.

“Covid-19 is an unseen beast that seems to be impacting everything in its path,” Mohammad Barkindo, secretary-general of the Organization of Petroleum Exporting Countries, said in a speech at the online gathering. “The supply and demand fundamentals are horrifying” and the expected oversupply, particularly in the second quarter, is “beyond anything we have seen before.”

Barkindo urged action to tackle the growing surplus, which he estimated at 14.7 million barrels a day in the second quarter. And he wants action not only from OPEC+ producers but from nations beyond the alliance.

Russia has insisted that the U.S. in particular do more than just let market forces reduce its record production. Trump, meanwhile, has said America’s cut will happen “automatically” as low prices put shale in dire straits, a sentiment reiterated by his energy secretary on Thursday.

America welcomed the OPEC+ cuts, saying it would send a signal that all major oil-producing countries will respond in an orderly manner to market realities caused by the virus, a senior administration official said.

Tapering Off

OPEC+’s tentative plan would see the output curbs tapering off after two months, depending on the evolution of the coronavirus. The 10 million-barrel-a-day cut may shrink to 8 million a day from July and then 6 million a day from January 2021, according to one delegate.

Saudi Arabia will apply its reduction to a production level of about 11 million barrels a day, a delegate said. That’s lower than recent output levels, which rose above 12 million a day in early April. Russia would curb its supply by a similar level.


##https://www.bloomberg.com/news/articles/2020-04-09/opec-agrees-on-deep-oil-output-cuts-to-fight-market-slump?srnd=premium-asia

Oil jumps 12% amid report Saudi Arabia and Russia have reached a deal, cut could reach 20 million barrels per day

PUBLISHED THU, APR 9 20208:59 AM EDTUPDATED MOMENTS AGO

Oil prices jumped on Thursday on reports that Saudi Arabia and Russia have reached a deal on a deep output cut, according to Reuters which cited two sources, and that cuts could reportedly be as high as 20 million barrels per day.

The reported deal comes as a virtual meeting between OPEC and its allies, known as OPEC+, kicked off in which some of the world’s largest producers were set to discuss production policy as the coronavirus pandemic saps demand for crude.

U.S. West Texas Intermediate jumped 12% to trade at $28.36 per barrel, while international benchmark Brent crude rose 8.5% to trade at $35.79 per barrel.

“We’re optimistic that they’ll reach an agreement between the Saudis and Russians in an effort to stabilize the markets,” U.S. Energy Secretary Dan Brouillette said Thursday on CNBC’s “Squawk Box” ahead of the meeting. “I think they can easily get to 10 million, perhaps even higher, and certainly higher if you include the other nations who produce oil, nations like Canada and Brazil and others. Easily, easily done,” he added.

The virtual meeting, which was initially planned for last Monday, began around 10 a.m. ET. President Donald Trump had fueled hopes of a cut far larger than any deal OPEC+ has ever agreed on before, suggesting the energy alliance could take between 10 million to 15 million barrels of crude off the market.

The meeting comes as relations between some of the world’s largest producers has grown fraught, and Saudi Arabia and Russia have signaled that any cut would need to include action from non-OPEC nations such as the U.S., Canada and Norway.

“OPEC+ is trying mightily to cobble together a sizable production cut, and they are in full spin mode to try and rally prices,” Again Capital’s John Kilduff told CNBC. The “teleconference will be a make-or-break moment for the oil market. The math on a 10 million barrel per day cutback, which is the minimum necessary to stabilize the situation, is almost impossible to compute.”

Energy ministers from the Group of 20 major economies will convene for their own extraordinary meeting on Friday, in which Energy Secretary Dan Brouillette will participate.

The G-20 presidency said Tuesday that the meeting would be held “to foster global dialogue and cooperation to ensure stable energy markets and enable a stronger global economy.”

When it comes to U.S. energy companies, Trump has commented that market forces will prevail, and on Wednesday said that producers have “already cut way back.” Brouillette echoed this on Thursday, telling CNBC that the “demand downturn has led to production cuts in the United States of about 2 million barrels per day thought the reminder of 2020.”

RBC global head of commodities research Helima Croft said she believes the chances “are greater than even” that “a broad framework agreement to curb output by a big headline number” can be achieved, but noted that “the situation remains extremely fluid.” 

“There are several land mines lurking right below the surface that could still blow up the negotiations at the 11th hour,” she said in a note to clients Thursday.

But even if a deal is reached, many argue that prices will stay lower for longer due to the unprecedented demand destruction caused by the coronavirus. In other words, the supply side is a secondary story to the demand hit.

“Even if a production-cut agreement is reached, which will surely give prices a short-term boost, we believe the enthusiasm will subside at some point and the reality of the size of the demand’s imbalance will eventually hit the market,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.


##https://www.cnbc.com/2020/04/09/oil-jumps-ahead-of-make-or-break-opec-meeting.html

Powell says the economic recovery can be ‘robust’ after the coronavirus is contained

(PUBLISHED THU, APR 9 202010:00 AM EDTUPDATED MOMENTS AGO)

Federal Reserve Chairman Jerome Powell said Thursday that the economic rebound following the coronavirus-induced shutdown “can be robust” despite the sharp downturn.

In the meantime, he said the central bank is committed to doing whatever it can to support the flow of cash to businesses and households both through a plethora of financing programs and by keeping interest rates anchored near zero.

Powell spoke during a webinar for the Brookings Institution the same morning that the Fed announced a new $2.3 trillion financing initiative directed at small and larger businesses as well as households and state and local governments.

“At the Fed, we are doing all we can to help shepherd the economy through this difficult time,” he said in prepared remarks. “When the spread of the virus is under control, businesses will reopen, and people will come back to work. There is every reason to believe that the economic rebound, when it comes, can be robust.”

The economy received more bad news Thursday morning as weekly jobless claims hit 6.6 million, just a shade below the previous week’s record high.

Nevertheless, Powell pointed out that the economy has been strong before prevention efforts aimed at halting the coronavirus spread put a large share of the U.S. productive capacity offline.

“We entered this turbulent period on a strong economic footing, and that should help support the recovery,” he said. “In the meantime, we are using our tools to help build a bridge from the solid economic foundation on which we entered this crisis to a position of regained economic strength on the other side.”

But he added that while the Fed has worked to provide loans, Congress likely will have to provide direct cash injections to those areas of the economy that need it.

He also reiterated the Fed’s pledge to keep borrowing costs low as the efforts to stabilize the economy and subdue the virus continue.

“We have also committed to keeping rates at this low level until we are confident that the economy has weathered the storm and is on track to achieve our maximum-employment and price-stability goals,” he said.


##https://www.cnbc.com/2020/04/09/fed-chair-powell-says-the-economic-recovery-can-be-robust-after-coronavirus.html

Stock rally builds steam to end the week, Dow now up 500 points

PUBLISHED WED, APR 8 20206:06 PM EDTUPDATED MOMENTS AGO

Stocks jumped on Thursday after the Federal Reserve gave more details on how it will support the economy amid the coronavirus pandemic. 

The Dow Jones Industrial Average jumped 500 points, or 2.1%. The S&P 500 gained 2% while the Nasdaq Composite advanced 1.6%. Thursday’s gains put the major averages on pace for strong weekly gains. The U.S. stock market will be closed Friday due to Good Friday. 

The Fed announced as slew of programs, including loans geared towards small and medium sized businesses, that will total up to $2.3 trillion. The central bank also gave more details on its plans to buy investment-grade and junk bonds. 

“This Fed is the most aggressive Fed. They do not want to be known as the reason why we went into a depression,” CNBC’s Jim Cramer said on “Squawk Box” on Thursday. “I’m very impressed. The Fed is on its game and this is what is needed because we got to fight off a depression, we got to get America open for business.”

Thursday’s announcement was enough to outweigh another massive jump in weekly jobless claims. 

More than 6 million Americans filed for unemployment benefits last week. Economists expected an increase of 5 million. The latest data built on the record-shattering prior two readings of 6.6 million and 3.3 million. 

Major weekly gains

The Dow was up more than 12.9% for the week after Thursday’s open, putting the 30-stock average on pace for its biggest weekly gain since 1938. The S&P 500 was up 12.1% week to date, on pace for its best week since 2008. The Nasdaq had gained 10.9% and was headed for its best weekly performance since 2008. 

Wall Street’s weekly surge comes amid increasing hope that the situation around the coronavirus was improving. In recent days, the number of new daily confirmed cases has dropped globally and in the U.S. New York state has also reported a decline in its virus-related hospitalization rate. 

But some believe that stocks are now getting ahead of themselves and investors should exercise caution. 

“I think this is kind of buy the rumor and potentially we sell the news when reality sets in of what we are going to see what’s on the other side,” billionaire investor Mark Cuban said Wednesday on CNBC’s “Closing Bell.” 

“I think people are naturally optimistic right now in terms of the market. I just don’t think they’re really factoring in what we’re going to see on the other side,” he added.

After Thursday’s rally, the Dow is up more than 30% from its March low and the Nasdaq is down 9% this year.

“The stock market is at a very uncertain point now. The impact of the coronavirus on future earnings is yet to be determined. We aren’t out of the woods,” said Nancy Davis, chief investment officer at Quadratic Capital.


##https://www.cnbc.com/2020/04/08/stock-market-futures-open-to-close-news.html

Nvm lahhh....

If go back target then sell lorr....

If touch back desire entry level then buy lorr.....

Adik ini tak tau main saham, baru belajar dari sini semua Sifu mahh.....