Traders said that WTI had been lifted by a report by the American Petroleum Institute (API) stating that U.S. crude inventories fell 7.4 million barrels in the week ended Dec. 30 to 482.7 million, compared with analyst expectations for a decrease of 2.2 million barrels.
"We expect Asia to trade on the positive-side today, supported by the API number," said Jeffrey Halley, senior market analyst at OANDA brokerage in Singapore.
Prices were also lifted by U.S. car and truck sales, which were up 3.1 percent in December from the same month last year, and hit a record 17.55 million overall in 2016.
PLAY VIDEO
More gas is left in oil’s tank: Technical analyst
A fall in the dollar away from a 14-year peak hit earlier this week also supported Brent futures, traders said, as a cheaper greenback makes dollar-traded fuel purchases cheaper for countries using other currencies at home.
Swings in the dollar also impact crude as financial speculators weigh the differing profit potentials of foreign exchange and commodity futures.

Energy Prices Rise More Than Other Commodities In 2016
Supported by higher U.S. gasoline consumption, record U.S. gasoline exports, and an increase in oil prices at the end of 2016, energy commodity prices rose more than any other major commodity group last year, the U.S. Energy Information Administration (EIA) said on Tuesday.

The spot energy index in the S&P Goldman Sachs Commodity Index (GSCI) increased by 48 percent in 2016, the EIA said, comparing the spot energy index rise with the spot S&P GSCI industrial metals index growth of 22 percent, the precious metals index which saw an increase of 8 percent, and the agriculture index that posted a 5-percent growth.

West Texas Intermediate (WTI) and Brent account for 69 percent of the weighting in the S&P GSCI energy index, and as such the index usually trends the crude price movements.

Following the 13-year-lows of January and February, prices had been stable in the US$40-50 range since May. The highest prices were recorded in December when OPEC and non-OPEC producers announced the deal to reduce oil supply starting on 1 January.

Crude prices were also supported by improved economic growth in both mature and emerging markets, the EIA said.

Petroleum-based products, for their part, account for 26 percent of the S&P GSCI energy index weighting. The rise in U.S. gasoline consumption and “record high U.S. gasoline exports helped to draw down gasoline inventories and to provide some price support in the last few months of 2016”, according to the EIA.

Brent @ $58 and above

By Florence Tan | SINGAPORE
Top oil exporter Saudi Arabia is expected to raise prices for all grades of crude it sells to Asia in February, tracking strength in the Dubai price benchmark and robust refining margins, traders said on Tuesday.

The official selling price (OSP) for flagship Arab Light crude could rise by at least 50 cents a barrel for February, a Reuters survey of four traders showed.

The respondents expect bigger price hikes for heavier grades in February, pushed up by the strongest fuel oil cracks in five years.

Arab Heavy's OSP could rise by as much as 90 cents to $1 a barrel in February, traders said.

The price hikes are "expected given stronger Dubai structure and stronger margins," one of the traders said.

He added that the contango spread between the first- and third-month Dubai crude prices published by price reporting agency Platts in December narrowed by 55 cents to 60 cents a barrel from November, an indication of a stronger spot market. The price of oil for prompt delivery is lower than those for future months in a contango market.

Saudi Arabia had committed to cut its production in January by 486,000 barrels per day (bpd) to 10.058 million bpd in an agreement among members of the Organization of the Petroleum Exporting Countries.

Still, the producer agreed to export more oil, above contractual volumes, to some Asian customers in January, opting to cut supplies to Europe and the United States instead because of higher netbacks in Asia, trade sources said.Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting more than 12 million barrels per day (bpd) of crude bound for Asia.

Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

ALSO IN CREDIT RSS

Twitter's China boss Kathy Chen quits after 8 months
Twitter's China boss Kathy Chen quits after eight months
Saudi Aramco officials as a matter of policy do not comment on the kingdom's monthly OSPs.

Saudi Arabia to raise February term crude prices to Asia

It may up to 0.14 and above for next wave

Brent reached $57 and above

It may reach 0.08, and next week skyrocketing.

(Reuters) - Oil prices rose in early Asian trade on Friday shrugging off a second consecutive week of U.S. crude oil inventory builds, with a U.S. Energy Information Administration (EIA) report late on Thursday indicating an unexpected rise in crude stocks.

U.S. benchmark West Texas intermediate (WTI) CLc1 crude futures were up 18 cents or 0.33 percent to $53.95 at 0105 GMT after settling 29 cents lower at $53.77 per barrel in the previous session.

Brent front-month March crude oil futures LCOc1 were 12 cents a barrel or 0.21 percent higher at $56.97.

Crude inventories USOILC=ECI were up 614,000 barrels in the week to Dec. 23, the EIA data showed, compared with analysts' expectations for a decrease of 2.1 million barrel.

Despite the unexpected rise in crude stocks, the EIA data published on Thursday showed a significantly smaller rise in crude stocks compared with Wednesday's American Petroleum Institute (API) data that indicated a 4.2 million barrel build in U.S. crude oil stocks in the same period. []

"Today's Department of Energy report was positive for light products due to draws in gasoline and distillate inventories compared to consensus' build expectations," British bank Barclays said in a note.

Gasoline stocks USOILG=ECI fell 1.6 million barrels, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel rise.

ADVERTISEMENT

The market is likely to have focused on the surprise draw in product stocks and taken on a slightly more bullish view toward the WTI contract, traders said.

Oil prices will gradually rise toward $60 per barrel by the end of 2017, a Reuters poll showed on Thursday, with further upside capped by a strong dollar, a likely recovery in U.S. oil output and possible non-compliance by OPEC with agreed cuts.

(Reporting by Mark Tay; Editing by Michael Perry)

http://klse.i3investor.com/blogs/kenangaresearch/112683.jsp

Will perisai enter top gainer share list?

Maintaining buying before it hit 0.10 and above. Know is your opportunity.

On thursday and friday, perisai will will skyrocketing. Congratulations

Brent now @ $56.37/barrel

Singapore dollar to weaken further in uncertain 2017: Analysts
For 2017, a double whammy of the US dollar's strength and ongoing woes in the domestic economy could take the Sing dollar down to levels last seen during the global financial crisis, analysts say.

Coming soon on Jan 2017

The Perisai rise of the share price

Perisai future price wishes....0.10.....0.20....0.40....0.70......0.80.....0.90.....1.00....1.20 When reach 1.20, sell for profit.

Brent reached $56 and above

Pull down the price.. Oil not yet up to $60. Still not stable. Bearish outlook.

Anyway the lower the price the better.

People who had bought at 0.04 and sold at 0.06-0.075 made money. People who bought at 0.055 and above loss money and need wait longer time to made money before due

SGD reached 1.45 against USD

Mon Dec 19, 2016 | 4:08 AM GMT
Oil prices rise in anticipation of tighter 2017 market

Photo
A customer prepares to fill the tank of her car at a fuel station in Sint Pieters Leeuw, Belgium, December 5, 2014.
REUTERS/YVES HERMAN/FILE PHOTO
By Henning Gloystein | SINGAPORE
(Reuters) - Oil prices rose on Monday in anticipation of tighter crude supply going into 2017 following the decision by OPEC and other producers to cut output to prop up prices.

Brent crude futures LCOc1, the international benchmark for oil prices, were trading at $55.57 per barrel at 0401 GMT, up 36 cents, or 0.7 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude oil futures were up 43 cents, or 0.8 percent, at $52.33 a barrel.

Traders said the higher prices in front-month crude futures were due to expectations of a tighter market.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia have announced cutbacks of almost 1.8 million barrels per day (bpd) in oil production from January 2017 in an effort to bolster prices to reduce rampant global overproduction which has seen output outstrip consumption for over two years.

"With investors now expecting a relatively high level of compliance with the production cut agreements, prices should be well supported," ANZ bank said on Monday.

"Saudi Arabia has stated its willingness to cut production below 10 million bpd if needed (down from around 10.5 million bpd currently), which should limit risk to the deal," U.S. bank Morgan Stanley said on Monday, adding that some of the non-compliance risk to the deal to cut output in 2017 came from Iraq, which increased its January loadings versus December.

ANZ bank said that "some weakness in U.S. dollar also helped improve (oil) investor sentiment."

The dollar has lost 0.8 percent against a basket of other leading currencies .DXY since hitting 2002 highs last week.

Swings in the dollar can affect oil demand as they influence fuel prices for any country using its own currency domestically.

Brent @ $55.21/barrel

Write a comment..The local dollar will probably slump to $1.48 at the end of next year on the prospect of higher US interest rates and a weaker Chinese yuan, Mr Heng said.

The Australia and New Zealand Banking Group also expects Singapore's central bank to adjust the centre of its policy band next year, said Mr Khoon Goh, its head of Asia research in Singapore. Investors who are betting on a decline in the currency can take profit at $1.50, he said.

Singdollar set to slide past S$1.45 against the US dollar as MAS resumes easing, say analysts
Singapore dollar notes and coins. Sing dollar is set to slide past S$1.45 against the US dollar.
Singapore dollar notes and coins. Sing dollar is set to slide past S$1.45 against the US dollar. PHOTO: ST FILE
PUBLISHEDDEC 16, 2016, 9:47 AM SGTUPDATEDDEC 16, 2016, 10:36 AM
FACEBOOK223TWITTERWHATSAPPEMAIL
SINGAPORE (BLOOMBERG) - The Singapore dollar is likely to slide to levels seen in the aftermath of the global financial crisis as the Monetary Authority of Singapore (MAS) resumes easing policy in April. So says an analyst who has correctly predicted the last three central bank decisions.

MAS, which uses the currency as a tool to manage the economy rather than interest rates, is set to lower the centre of the band within which it steers the local dollar as Singapore's export-driven economy feels more pain from China's slowdown in 2017, according to Mr Vaninder Singh, an economist at NatWest Markets, part of Royal Bank of Scotland Group .

The currency is set to weaken past S$1.45 against the greenback within the next six months, Mr Singh said, a level last seen in August 2009.

(Reuters) - Oil prices edged up on Friday after market sources said Kuwait had told customers it was cutting supplies by more than initially expected from January as part of a coordinated effort by oil producers to drain a global glut.

International Brent crude oil futures were trading at $54.22 per barrel at 0114 GMT, up 20 cents, or 0.37 percent from their last settlement.

U.S. West Texas Intermediate (WTI) crude futures were up 24 cents, or 0.47 percent, at $51.14 per barrel.

The slightly higher prices came after Kuwait, a member of the Organization of the Petroleum Exporting Countries (OPEC), notified customers that it would cut supplies from January as part of an effort by OPEC and other producers led by Russia to cut production by almost 1.8 million barrels per day (bpd) in order to reduce a fuel supply overhang that has dogged markets for over two years.

Kuwait Petroleum Corporation (KPC) already said on Tuesday that it had officially notified its customers of a cut in their contractual crude oil supplies for January, in line with a deal with OPEC to reduce production.

Traders said that market prices rose as KPC appeared to be cutting supplies more than initially expected.

"Prices recovered as news emerged that Kuwait was said to be making bigger production cuts to U.S. and European customers," ANZ bank said on Friday.

Biggest run in prices in 18 months.

Oil prices surged to an 18-month high on Monday after the world’s top crude producers agreed to the first joint output cut since 2001, sparking concerns about inflation, which pushed up U.S. Treasury yields to a more than two-year peak.

Yields also gained ahead of a two-day Federal Reserve policy meeting that starts on Tuesday, where the U.S. central bank is expected to raise interest rates for the only the second time since the global financial crisis.

The gain in oil prices followed the weekend agreement between OPEC and key non-OPEC states. Brent crude futures were up $1.76 at $56.09 per barrel, a 3.2% rise, after hitting a session peak of $57.89, the highest since July 2015.

U.S. crude futures were up $1.73 at $53.24 a barrel, a 3.4% gain.

There was particular surprise as Saudi Arabia, the world’s top producer, said it may cut its output even more than it had first suggested at an Organization of the Petroleum Exporting Countries (OPEC) meeting just over a week ago.

Energy shares jumped, helping lift the Dow Jones industrial average and S&P 500 to record intraday highs in early trading on Monday. The S&P 500 SPX 0.00% later retreated, with consumer discretionary shares among the biggest drags.

The OPEC news and surge in oil prices were “good news for economic growth in the U.S. as well as Russia and others. But it will be to some extent tempered by a little bit of an impact on consumer spending,” said Hugh Johnson, chief investment officer of Hugh Johnson Advisors in Albany, N.Y.

“There are so many reasons to believe inflation is going to be headed higher, and this just adds fuel to that fire,” which is why bond yields are up and the U.S. stock market is mixed, he said.

Brent up to $56.89/barrel

Ringgit to strengthen to RM4.00 against US dollar in 2017: Trade experts
Posted on 8 December 2016 - 05:40am
Eva Yeong
sunbiz@thesundaily.com

KUALA LUMPUR: The depreciation of the ringgit is a temporary phenomenon and trade experts believe the currency will strengthen to RM4.00 against the US dollar next year, one of the most bullish projections for the ringgit thus far.

International Trade and Industry Ministry former senior director of Asean Economic Cooperation Datuk P. Ravidran Palaniappan expects the ringgit to strengthen to RM4.00 by the first quarter of 2017.

“I think the fundamentals surrounding the economy are very strong. In terms of external trade we are doing very well. The price of oil has gone up and commodity prices, such as that for palm oil, are relatively stable. I see this as a temporary rather than a long haul kind of thing,” he told reporters at the Institute of Chartered Accountants in England and Wales (ICAEW) 2017 Economic Outlook – New Realities Affecting Malaysia’s Economic Success briefing yesterday.

Asean-India Business Council co-chairman Datuk Ramesh Kodammal also expects the ringgit to strengthen to RM4.00, by the first half of 2017, as commodity prices are moving forward and oil prices are expected to trade at US$60-US$65 (RM266-RM282) a barrel in the near future.

He said with the ringgit at the present level, Malaysia is an opportunity for investors around the world as it has one of the best infrastructure within the region and he foresees a lot of opportunities for investors coming into Malaysia within the next six months to a year. The ringgit stood at RM4.43 against the US dollar yesterday.

Ramesh said the Asean economy will be driven by a young population, of which the majority are small and medium enterprises (SMEs) looking for opportunities to move forward within the region.

“This is the best time actually to look at it, that a person explore when things are not too good. You must start moving out to see what best you can get outside,” he said.

On Bank Negara Malaysia’s new policy requiring exporters to convert 75% of export earnings into ringgit, ICAEW economic adviser and Oxford Economics lead economist Priyanka Kishore said it will help stem the downfall of the currency.

However, she said, the ringgit’s depreciation is driven by US dollar strength rather than domestic economic fallout and the prospects of fiscal boost in the US is expected to continue supporting the US dollar.

“It’s going to lead to a slower degree of depreciation definitely, so to that extent it is a useful step but I don’t think it changes the momentum until the US dollar shows some signs of slowing down … these measures slow down the pace of depreciation rather than a complete reversal. I think a lot depends on how the US dollar rise and the US dollar strength pan out,” Priyanka said.

She said an example of these signs would be from the US Federal Reserve, in the form of a slower-than-expected interest rate increase in 2017, which the markets are moving to price in.

“If they move to reprice that again, that will lead to some pull back in the US dollar and that is way more important at time in terms of turning the tide of the currency.”

On the Trans-Pacific Partnership, Ravidran said more clarity is needed on the concerns of US President-elect Donald Trump and, in the meantime, Asean needs to step up economic integration and avoid restrictive measures.

He said the Regional Comprehensive Economic Partnership (RCEP) should be concluded and implemented early, given the challenging global environment, as it would contribute to the economic growth of the region.

“One of the things that Asean has to do is that they should not slide back, they should not be rolling back on commitments or adopting protectionist measures. We need to step up the integration and, with RCEP, I’m confident that the region will be able to sustain its economic growth. We are already engaging with Hong Kong, negotiations are going on. I see all these as positive signs for the region,” he added.

Brent reached $54.75/barrel

http://www.thestar.com.my/news/nation/2016/12/03/bank-negara-takes-steps-to-increase-demand-for-ringgit/

PETALING JAYA: Bank Negara announced several measures to increase the demand for the ringgit and reduce its volatility against the US dollar.

Among the measures are that exporters are to convert 75% of their proceeds into ringgit effective Monday.

At the moment, exporters are required to bring back their proceeds into Malaysia within three months of completing a transaction.

However they are allowed to hold the proceeds in foreign currencies.



As such most companies tend to hold their export proceeds mainly in US dollar with local banks, with the view that the dollar tends to appreciate in the longer term.

This has contributed to the weakening of the ringgit against the US dollar. Since early this year, the ringgit weakened by 3.72% against the US dollar.

“Effective Monday, exporters are required to convert 75% of their proceeds into ringgit after bringing the money back here,” Bank Nega­ra’s assistant governor Adnan Zay­lani told a media briefing here yesterday.

The central bank said that as an incentive, companies could place their proceeds from exports in local banks and earn a special deposit rate of 3.25% per annum.

The amount held by exporters in foreign currencies is estimated to be closer to RM90bil.

At current exchange rate of dollar and ringgit, the gradual conversion of the export proceeds could result in Bank Negara’s reserves increasing by more than US$18bil (based on an exchange rate of RM4.44 to the dollar).

Bank Negara’s measures were immediately felt in the offshore market.

For the first time in recent weeks, the ringgit strengthened against the US dollar in the offshore market closing at RM4.44 yesterday evening.

In the domestic market, the ringgit closed at RM4.45 against the dollar, weakening marginally.

A dealer said that the traders in the offshore market were reducing their exposure, anticipating that it could be less important in the short term.

Adnan, who heads Bank Negara’s Financial Markets Committee, said that between 2011 and 2015, only 1% of the proceeds from exports were converted into ringgit.

“Previously, between 2006 and 2010, some 28% of total proceeds from exports were converted to ringgit,” he said.

Other measures to increase the demand for the ringgit include placing a cap on the amount that companies and individuals can invest locally or abroad in foreign currencies.

At the moment, companies and indivi­duals with loans tied to local banks can only invest a certain amount abroad for instance to purchase companies or properties.

For companies with loans, the limit is RM50mil while for individuals, it is RM1mil.

However, there are no restrictions for companies and individuals if they want to invest in foreign currency assets in the domestic market.

“Companies and individuals tend to buy US dollar bonds or investment instruments sold by local banks by taking borrowings from local banks. Now there will be a cap on this,” said a dealer.

Effective Monday, local companies and individuals with borrowings can only invest up to RM50mil and RM1mil respectively in foreign currency denominated assets in the domestic market.

Bank Negara also announced measures to help fund managers manage their portfolio of investments against the volatility of the US dollar-ringgit movement.

Brent @ $54.46/barrel

Brent uptrend to $53.90/barrel

Brent now @ $53.70/barrel

Brent now @ $50.47/barrel

Oil prices soared as much as 10 percent on Wednesday as some of the world's largest oil producers agreed to curb oil output for the first time since 2008 in a last-ditch bid to support prices.
However, they were unlikely to skyrocket further in reaction to the deal and the rally may even be short-lived, traders and analysts said.
The Organization of the Petroleum Exporting Countries agreed to cut production to 32.5 million barrels per day, Kuwait's oil minister said. The cuts include Iraq reducing output by 200,000 bpd to 4.351 million bpd beginning in January. The country had previously resisted cuts, providing a hurdle to an agreement.

The cut will put production at the low end of a preliminary agreement struck in Algiers in September, and will reduce output from a current 33.64 million bpd.

PLAY VIDEO

The group's de facto leader Saudi Arabia said it would take the lion's share of cuts — reducing output by almost 486,000 bpd to 10.06 million bpd — to get the deal done.
Iraq, OPEC's second largest producer which had previously resisted cuts, providing a hurdle to an agreement, agreed to reduce output by 200,000 bpd to 4.351 million bpd.
Iran was allowed to boost production slightly from its October level. This was a major victory for Tehran, which has long argued it needs to regain market share lost under Western sanctions.
Non-OPEC member Russia, which had long resisted cutting output and pushed its production to new record highs in recent months, agreed to cut output by 300,000 bpd. OPEC will meet with non-OPEC producers on Dec. 9.

Brent reached $50 and above

Write a comment..Oil price surges as Opec 'agrees output cut' – business live
Oil producers have reportedly agreed to cut production by more than 1m barrels a day, driving Brent crude over $50 a barrel, but analysts want to see the details

Oil jumped more than 7 percent on Wednesday, after the Saudi oil minister said an agreement among OPEC members on cutting output was close, putting the price on course for its biggest one-day move since April.
Brent crude futures rose $3.75 on the day to $50.13 per barrel by 7:04 a.m. ET (1204 GMT), while U.S. West Texas Intermediate (WTI) crude futures rose $3.57 to $48.80 a barrel.

Brent rebound to $48.73/barrel

For first time download Jones index reached 19,0000.
Monday Bursa Malaysia sure flying with colour.

Write a comment..Image of bull statue
From Zacks: The Dow Jones industrial average appears to be on cloud nine, having crossed 19,000 for the first time in its 120-year history on November 22. Not only Dow, the other two key U.S. equity gauges — the S&P 500 and NASDAQ Composite — also hit record highs.

The tailwind was the Trump-induced rally triggered off by the pledges of higher fiscal spending and tax cuts. Specially, the industrial sector deserves a special mention on the president-elect’s plans of increased infrastructure spending. With republicans taking control of both the House and Senate, Trump is expected to enact all his market-friendly policies seamlessly (read: Trump Triumphs: Stocks & ETFs to Rock or Shock).

Can Dow Hit 20,000 in the Near Term?

The answer can be give by both oil and Trump.

Investors should note that though several market watchers believe that there is little-to-no correlation between oil and stocks, this belief has been changing lately as the broad-based market movement has been oil-driven to a large extent (read: If the Oil Crash Continues, Buy These 5 ETFs to Outperform).

This was especially true for Dow Jones Industrial Average. Recently, on a particular day of oil rout, the decline in Dow Jones was steeper than that of the S&P 500. Since August 2015, crude oil and the Dow Jones Industrial Average index moved almost in line. So, if the OPEC cuts an output curb deal this month, Dow may gain.

Also, manufacturing numbers point to a recovery in the U.S. Upswing in the manufacturing sector can act as a strong tailwind to Dow Jones Industrial Average’s forward growth. After all, SPDR Dow Jones Industrial Average ETF (DIA – Free Report) invests about 19.83% weight – the highest allocation – in the industrial sector (read: Global Manufacturing in Growth Zone: ETFs to Watch).

Another bullish argument — that a transition is ongoing from an interest-rate driven market into an earnings-driven one — was presented by a chief investment strategist at Baird. This can be a winning case for Dow Jones. As per an article published on Investopedia, “the consensus earnings estimates of Wall Street analysts started predicting Dow 20,000 within the upcoming year.”

Some analysts are highly optimistic about Dow stocks and their projection is a 5.3% increase to 20,024 in 18 months.

Is There Something to Worry About DOW?

Despite the bullishness surrounding Dow Jones, there are concerns as well. Investors should note that the index spent around two years to cover another 1,000 points as it reached the 18,000 mark in December 2014. Wall Street Journal notified that “this was the seventh-longest stretch of time between such round-number marks.” Moreover, it went on to explain that “the latest 1,000-point climb was the result of average gains of about 0.01% each trading day.”

What’s more concerning is that the height reached by Dow in recent times was unsusstainable. The 16000, 17000 and 18000 Dow records were all snapped in less than 160 trading sessions after the earlier 1,000-point level was first reached.

Last but not the least, hasn’t the market already priced in a Trump win? After all, key U.S. indexes logged a pretty decent ascent following the election.

Now, it all depends on how Trump delivers on his promises and oil prices shape up. Till then, investors believing in the Dow rally can invest in these ETFs mentioned below.

http://www.abc.net.au/news/2016-11-25/bank-rate-rigging-spreads-anz-macquarie/8057398

Print Email Facebook Twitter More
Bank rate rigging spreads as ANZ, Macquarie hauled into court over Malaysian ringgit trades
By business reporter Stephen Letts
Updated 36 minutes ago

A Malaysian shows the front and back of the new five ringgit polymer notes.
PHOTO: The ACCC alleges the manipulations occurred over a series of trading days in 2011. (Reuters: Bazuki Muhammad BM/FA)
RELATED STORY: Three big banks are accused of rigging rates. Here's how it affects youRELATED STORY: ANZ, NAB confirm US class action over rate rigging accusations
MAP: Australia
ANZ and Macquarie Bank have been hauled into the Federal Court over alleged attempts to manipulate the benchmark rate of the Malaysian ringgit.

Key points:

ANZ admits to 10 instances of alleged cartel conduct, fined $9m
Macquarie faces a $6m fine
Macquarie trader regularly contacted ANZ traders about submissions for Malaysian ringgit fixing rate
The action taken by the Australian Competition and Consumer Commission (ACCC) alleges traders at both banks engaged in cartel conduct in attempting to influence the daily rates used for currency trading.

The allegations date back to a series of trading days in 2011.

ANZ has admitted to 10 instances of attempted cartel conduct and has submitted to the court to pay a penalty of $9 million and contribute to the ACCC's costs, while Macquarie is facing a $6 million penalty and costs.

Both banks have accepted a series of facts the ACCC has put before the court.

These include that a Macquarie trader regularly contacted traders from ANZ and other Singapore-based banks in private online chatrooms about daily submissions in relation to the benchmark rate for the Malaysian ringgit.

"On various dates in 2011, traders employed by ANZ and the Macquarie trader attempted to make arrangements with other banks that particular submitting banks would make high or low submissions to the Association of Banks in Singapore (ABS) in relation to the ABS Malaysian ringgit fixing rate," the ACCC said.

While Macquarie was not one of the banks authorised to make rate submissions to the ABS panel, the trader often initiated discussions with panel traders, including those from ANZ.

The ACCC pursued the banks via the cartel provisions under the Competition and Consumer Act.

"I personally believe that the action we've taken today will send a message to the boardrooms and senior managers of banks that I think will help shape behaviour," ACCC chairman Rod Sims told ABC News.

"They did have this action brought to their attention, they acted in relation to the individuals and acted in relation to future compliance policies.

"I think we need to be clear that this occurred in 2011, that's a long time ago, and I think the banks would argue with some justification that they're trying to address the issues that have been brought to their attention."

ACCC estimates turnover on forward contracts worth $10b

The ACCC estimated the 2011 turnover in Australia for trades in the Malaysian ringgit forward contracts the traders were seeking to manipulate was approximately $9 to 10 billion.

"ANZ and Macquarie's customers included Australian companies," the ACCC noted.

The ABS benchmark rates are used as reference rates for settling non-deliverable forward contracts (NDFs) and, given they are not widely traded outside Singapore, rates must be set by a panel banks submitting their views on the appropriate rate each day.

"ANZ has agreed the employees unsuccessfully attempted to influence the setting of benchmark rates used to settle NDF contracts for the Malaysian Ringgit on 10 occasions in 2011," ANZ said in a statement.

"The three employees involved are no longer employed by ANZ."
ANZ's chief risk officer Nigel Williams said the bank has an obligation to ensure its staff, both in Australia and overseas, comply with the law at all times.

"While there is no evidence that FX (foreign exchange) benchmarks in Singapore were successfully influenced, we accept responsibility and apologise for the actions of our former employees," Mr Williams said.

"We have made significant improvements to our compliance, training and monitoring systems to ensure this does not happen again."

The rate rigging allegations are similar to a number of cases the Australian Securities and Investments Commission (ASIC) is pursuing against NAB, ANZ and Westpac over the rigging of Australia's bank bill swap reference rate, or BBSW, dating back to 2012.

In August, NAB, ANZ and Macquarie were named in a class action launched by two US-based fund managers against 17 international banks and broking houses involved BBSW trading in the US.

Trump's win pushes OPEC to cut production, says BofA's Blanch
Tom DiChristopher | @tdichristopher
5 Hours Ago
CNBC.com
45
SHARES
90
COMMENTSJoin the Discussion
Saudi Arabia's Energy Minister Khalid al-Falih talks during the 23rd World Energy Congress in Istanbul, Turkey, October 10, 2016.
Murad Sezer | Reuters
Saudi Arabia's Energy Minister Khalid al-Falih talks during the 23rd World Energy Congress in Istanbul, Turkey, October 10, 2016.
The election of Donald Trump to the presidency gives OPEC members another reason to agree to oil production cuts when they meet next week, says Bank of America Merrill Lynch's head of global commodities and derivatives research.

Saudi Arabia is trying to guide OPEC members toward a deal to cut production by 4 to 4.5 percent, in a bid to balance global supply and perhaps boost oil prices by about $10 a barrel.

Merrill's Francisco Blanch told CNBC there are three ways Trump's win and the Republican clean sweep of Congress will affect OPEC's forecast:

1. GOP driving dollar and interest rates higher

First, the policies the GOP is pursuing are generating a stronger dollar and higher interest rates, neither of which bode well for emerging-market countries — or for oil demand in the developing world, he said.

A stronger greenback makes dollar-denominated crude more expensive when it's bought in other currencies, and higher U.S. interest rates tend to give investors an alternative to putting their money to work in emerging markets.

"It's very important that OPEC comes back together, given the potential weakness in emerging market demand," Blanch told CNBC's "Squawk on the Street."

That will be particularly true if President-elect Trump follows through with his campaign threats to impose tariffs on goods shipped from emerging markets including China, he said.

2. Threat of a boost in US production

Second, Trump's goal of boosting U.S. energy output by rolling back regulations threatens to exacerbate the global oversupply of crude. American drillers have reduced their output because they face higher costs of production than many OPEC nations.


"So now OPEC has to deal with a rising threat of more supply from the U.S. at a lower cost, because that's what lower regulatory hurdles mean for supply in this country," he said.
3. Iran could fall in line

Lastly, Iran is now more likely to play ball with regional rival Saudi Arabia. Trump and Congressional Republicans are both fierce critics of a deal reached by the United States and five other world powers to lift sanctions on Iran.
That accord has allowed Iran to increase its oil output and claw back market share, but Tehran cannot boost production and exports much more without foreign investment. Republican control of the White House and Congress makes it more likely Iran will face renewed sanctions, and that threat will discourage potential investors, in Blanch's view.

"Effectively their worst case scenario for next year, which is keeping supply where it is today, probably just became their best case. I don't see a lot of ... international companies going into Iran, a lot of financial institutions going into Iran, given all the uncertainty as to what a new Trump administration with a Republican clean sweep is going to do to Iran," Blanch said.

Malaysia central bank shows higher forex reserves despite ringgit support
Leslie Shaffer | @LeslieShaffer1
1 Hour Ago
CNBC.com

Mareen Fischinger | Westend61 | Getty Images
How did Malaysia's central bank manage to simultaneously meddle in markets to support its currency and increase its foreign exchange reserves? That's a $500 million question.
Malaysia's central bank, Bank Negara Malaysia (BNM), said last week it was intervening in the market to support the ringgit, which was particularly hard hit in the "Trump tantrum" of emerging market fund outflows in the wake of Donald Trump's surprise U.S. election win on November 8.
That intervention should have showed up in the country's foreign-exchange reserves as a decline because the central bank would usually need to sell foreign currencies to purchase ringgit.

Instead, the central bank said on Tuesday that its international reserves amounted to 407.8 billion ringgit, equivalent to $98.3 billion, as of November 15. That compared with the 405.5 billion ringgit, or $97.8 billion, it had as of October 31, according to a November 7 statement.
BNM didn't immediately answer emailed requests for comment on the unusual rise in reserves, but at least one analyst noted the seeming discrepancy in the figures.
"A surprise increase in foreign-exchange reserves and BNM reassuring investors that capital markets and the banking system is deep and liquid in their policy statement leaves more questions than answers," Jason Daw, a foreign-exchange analyst at Societe Generale, said in a note on Thursday.
"Valuation effects alone should have caused reserves to fall and it is unlikely that dollar buying occurred in the November 1-15 period," he said, speculating that Malaysia's swap line with China's central bank, the People's Bank of China (PBOC), may have been tapped for dollar liquidity.
The swap arrangement allows the two central banks to provide liquidity in each other's currencies, primarily aimed at supporting trade and investment.

OPEC’s Matrix: If 1 Million Bpd Are Cut, Oil Will To Rally To $59