Wednesday 18 October 2017

Oil price up as key producers get talking

Oil was the big mover globally yesterday
Oil was the big mover globally yesterday

Donal O'Donovan and Reuters

Crude oil jumped more than 4pc yesterday after the United States cut output forecasts, while global equity markets mostly rose on expectations the Fed will not raise interest rates this year, although Wall Street fell on slumping biotech stocks.

In Dublin the ISEQ share index closed up 0.34pc at 6,287, continuing gains into a second day.

Baked good giant Aryzta saw strong gains, closing up 4.36pc at €42.60 a share. Smurfit Kappa shares were up 3.58pc at €24.53 each and the tone across the market was generally firm.

Oil was the big mover globally. That trend was helped by news that non-OPEC producer Russia and key OPEC member Saudi Arabia had discussed the market last week and plan to continue exchanging views on demand, production and shale oil, as Russian Energy Minister Alexander Novak told reporters.

It's a sign oil exporters may do more to boost prices - with reducing output the key weapon in that arsenel.

A weakening dollar added support for oil, while the US Energy Information Administration projected in a monthly forecast that the country's crude output will fall through mid-2016.

Elsewhere, European shares rallied, extending strong gains from the previous session on expectations the US and European central banks will maintain equity-friendly monetary policy in the coming months.

Large volume in the US stock market's rally on Monday suggests that at least the downside momentum is now broken, said Bruce Bittles, chief investment strategist at Robert W Baird & Co.

The pan-European FTSEurofirst 300 closed up 0.65pc, while MSCI's all-country world stock index rose 0.2pc, aided by a 1pc gain earlier in Tokyo.

Irish Independent

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