MELBOURNE (Reuters) – Oil prices rose around 1% on Wednesday, extending overnight gains, after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves.

U.S. West Texas Intermediate (WTI) crude futures rose 75 cents, or 1.1%, to $71.24 a barrel at 0131 GMT, adding to a 35 cent gain from Tuesday. Brent crude futures climbed 68 cents, or 0.9%, to $75.04 a barrel, after gaining 44 cents on Tuesday.

After coming under pressure on Monday on broader market jitters over the possible default of Chinese property developer China Evergrande Group, the oil market’s focus turned to tight supply issues.

U.S. crude stocks fell by 6.1 million barrels for the week ended Sept. 17, market sources said, citing figures from the American Petroleum Institute on Tuesday. That was a much bigger decline than the 2.4 million barrel drop in crude inventories which 10 analysts polled by Reuters had expected on average.

The market will be watching out for data from the U.S. Energy Information Administration on Wednesday to confirm the big drops in crude and fuel stocks.

Supply is expected to remain tight after Royal Dutch Shell, the largest U.S. Gulf of Mexico producer, said damage to its offshore transfer facilities would cut production into early next year.

Gasoline inventories fell by 432,000 barrels and distillate stocks, which include jet fuel, fell by 2.7 million barrels, the API data showed, according to the sources, who spoke on condition of anonymity. That comes at a time when jet fuel demand is picking up.

“Market sentiment got additional support from the end of the U.S. ban on foreign travellers,” ANZ commodity analysts said in a note.

Further supporting the market, some producers in the Organization of the Petroleum Exporting Countries and their allies, together called OPEC+, are struggling to increase output up to their targeted levels, sources told Reuters. Most of the shortfall is from Nigeria, Angola and Kazakhstan.

Reporting by Sonali Paul; editing by Richard Pullin

Oil rises on big decline in U.S. crude stocks

MELBOURNE (Reuters) – Oil prices rose around 1% on Wednesday, extending overnight gains, after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves.

U.S. West Texas Intermediate (WTI) crude futures rose 75 cents, or 1.1%, to $71.24 a barrel at 0131 GMT, adding to a 35 cent gain from Tuesday. Brent crude futures climbed 68 cents, or 0.9%, to $75.04 a barrel, after gaining 44 cents on Tuesday.

After coming under pressure on Monday on broader market jitters over the possible default of Chinese property developer China Evergrande Group, the oil market’s focus turned to tight supply issues.

U.S. crude stocks fell by 6.1 million barrels for the week ended Sept. 17, market sources said, citing figures from the American Petroleum Institute on Tuesday. That was a much bigger decline than the 2.4 million barrel drop in crude inventories which 10 analysts polled by Reuters had expected on average.

The market will be watching out for data from the U.S. Energy Information Administration on Wednesday to confirm the big drops in crude and fuel stocks.

Supply is expected to remain tight after Royal Dutch Shell, the largest U.S. Gulf of Mexico producer, said damage to its offshore transfer facilities would cut production into early next year.

Gasoline inventories fell by 432,000 barrels and distillate stocks, which include jet fuel, fell by 2.7 million barrels, the API data showed, according to the sources, who spoke on condition of anonymity. That comes at a time when jet fuel demand is picking up.

“Market sentiment got additional support from the end of the U.S. ban on foreign travellers,” ANZ commodity analysts said in a note.

Further supporting the market, some producers in the Organization of the Petroleum Exporting Countries and their allies, together called OPEC+, are struggling to increase output up to their targeted levels, sources told Reuters. Most of the shortfall is from Nigeria, Angola and Kazakhstan.

Reporting by Sonali Paul; editing by Richard Pullin

Gold and silver prices edged lower today, continuing their recent correction amid weak global cues. On MCX, gold rates were down 0.13% to $623.66 per 10 gram while silver rates dropped 1% to $806.97 per kg.

In the previous session, gold had dropped 0.16% while silver had tumbled 1.76%. In global markets, gold rates edged lower as a stronger US dollar dampened the appeal of safe-haven asset. Investors were also cautious ahead of US Federal Reserve meeting later this week. Spot gold dipped 0.1% to $1,752.66 per ounce.

Expect choppy movement in gold with negative bias to continue the day, says Geojit in a note. “A direct drop below $1,740 would trigger further major selling pressure,” the brokerage added. The dollar index hovered near one-month high, denting gold’s appeal for holders of other currencies.

Analysts expect the Fed to announce a timeline for reducing its monthly bond purchases as its two-day meeting starts tomorrow. The US central bank is also likely to release fresh economic projections and a new read on officials’ interest rate expectations. Gold is often viewed as a hedge against the inflation and currency debasement likely from widespread stimulus. Tapering of stimulus could diminish gold’s appeal.

Also, higher interest rates raise the opportunity cost of holding non-interest bearing gold. Among other precious metals, silver fell 0.3% to $22.33 per ounce while platinum dropped 0.1% to $940.39. “For silver, weak bias to continue initially but stiff support seen at $21.80 which may hold further major liquidation pressure,” Geojit said.

In a note, Kotak Securities said gold may remain volatile reflecting the trend in US dollar and equity markets as market players assess Fed’s monetary policy and China’s economic health.

On the downside, gold could get supported by persisting virus risks, rising inflation concerns, uneven global economic recovery, geopolitical tensions and China’s regulatory crackdown measures, say analysts. Kotak expects gold rates to stabilize near $1750/ounce level.

Gold price today fall to lowest in near 6 months, silver rates plunge

Gold and silver prices edged lower today, continuing their recent correction amid weak global cues. On MCX, gold rates were down 0.13% to $623.66 per 10 gram while silver rates dropped 1% to $806.97 per kg.

In the previous session, gold had dropped 0.16% while silver had tumbled 1.76%. In global markets, gold rates edged lower as a stronger US dollar dampened the appeal of safe-haven asset. Investors were also cautious ahead of US Federal Reserve meeting later this week. Spot gold dipped 0.1% to $1,752.66 per ounce.

Expect choppy movement in gold with negative bias to continue the day, says Geojit in a note. “A direct drop below $1,740 would trigger further major selling pressure,” the brokerage added. The dollar index hovered near one-month high, denting gold’s appeal for holders of other currencies.

Analysts expect the Fed to announce a timeline for reducing its monthly bond purchases as its two-day meeting starts tomorrow. The US central bank is also likely to release fresh economic projections and a new read on officials’ interest rate expectations. Gold is often viewed as a hedge against the inflation and currency debasement likely from widespread stimulus. Tapering of stimulus could diminish gold’s appeal.

Also, higher interest rates raise the opportunity cost of holding non-interest bearing gold. Among other precious metals, silver fell 0.3% to $22.33 per ounce while platinum dropped 0.1% to $940.39. “For silver, weak bias to continue initially but stiff support seen at $21.80 which may hold further major liquidation pressure,” Geojit said.

In a note, Kotak Securities said gold may remain volatile reflecting the trend in US dollar and equity markets as market players assess Fed’s monetary policy and China’s economic health.

On the downside, gold could get supported by persisting virus risks, rising inflation concerns, uneven global economic recovery, geopolitical tensions and China’s regulatory crackdown measures, say analysts. Kotak expects gold rates to stabilize near $1750/ounce level.

TOKYO (Reuters) – Japan’s wholesale inflation hovered near a 13-year high in August as raw material imports continued to rise on solid global demand, data showed on Monday, putting pressure on companies to pass on higher costs to households.

“It’s difficult to pass over the (wholesale) price increase to consumer goods given the weak consumption,” said Takumi Tsunoda, senior economist at Shinkin Central Bank Research. “The BOJ might be forced to continue its massive easing even when central banks around the world seek normalisation.”

The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 5.5% in August from a year earlier, slightly below a median market forecast for a 5.6% gain, Bank of Japan data showed.

It was the sixth straight month of increase and a tad below the 5.6% surge in July, which was the fastest pace of increase since September 2008. The index, at 105.8, marked the highest level since 1982, when Japan’s economy was booming from an asset-inflated bubble.

While gains in fuel costs moderated, prices rose for chemical, steel and wood products as global demand for such goods remained strong, Shigeru Shimizu, head of the BOJ’s price statistics division, told a briefing.

“As the global economy continues to recover thanks to progress in vaccinations, domestic wholesale inflation will remain under upward pressure, though there’s uncertainty over the outlook due to a resurgence in infections,” he said.

Underscoring the huge cost pressure companies were facing, the yen-based import prices rose a record 29.2% in August from a year earlier, the data showed.

Japan’s economy has emerged from last year’s slump thanks to robust exports. But continuing state of emergency curbs have dampened prospects for a solid recovery in the current quarter.

Core consumer prices fell 0.2% in July from a year earlier, marking the 12th straight month of declines and staying distant from the BOJ’s elusive 2% target.

Reporting by Leika Kihara; Additional reporting by Kantaro Komiya; Editing by Sam Holmes

LONDON, Sept 6 (Reuters) – Goldman Sachs (GS.N) plans to list the assets of Petershill Partners, cashing in on a private equity boom with a deal which could value the investment vehicle at more than $5 billion.

Petershill, which takes minority stakes in alternative assets managers including private equity and hedge funds, will be a standalone company operated by the Goldman Sachs Asset Management team, it said on Monday.

The deal would consist of a sale of around $750 million of new shares as well as existing ones to give Petershill a free float of at least 25% and make it eligible to be included in FTSE indices.

Goldman Sachs declined to give an estimated market value for the unit, but a source close to the deal said analysts put it at in excess of $5 billion. The deal is slated to take place around a month from now, the source said.

The company chose London to list because Petershill was founded in the British capital and because the financial centre’s vibrant capital markets offer a strong fundraising opportunity, the source added.

FEE SEARCH

Private equity funds have soared in value over the past year as money pours in from investors looking for higher returns when interest rates are so low. In July, British buyout firm Bridgepoint listed in London, with its shares now up more than 40% from its debut price.

The business takes advantage of its relationship with Goldman Sachs to source attractive acquisitions in alternative asset management, it said. Profits from Petershill will go to its institutional investors, while Goldman Sachs will earn an operator fee for managing the company.

Goldman chief executive David Solomon wants to make the bank’s revenues less reliant on often-volatile earnings from trading and advising on deals.

The Wall Street firm is trying to grow in areas like asset and wealth management, where it can earn recurring fees. Petershill itself has no fixed assets but holds positions in 19 alternative asset managers with combined assets under management of $187 billion.

It pivoted its investment strategy to focus on technology in 2017 and is now shifting to focus on the effects of the COVID-19 pandemic by investing in areas such as healthcare, balance sheet repair and environmental, social and governance (ESG).

Reporting by Lawrence White; Editing by Edmund Blair and Alexander Smith

SYDNEY, Sept 2 (Reuters) – Asian share markets were in a cautious mood on Thursday as concerns grew over the Chinese economy after a run of soft data, while the risk of a sub par U.S. payrolls report kept the dollar on the defensive.

A raft of manufacturing surveys suggested supply bottlenecks were tightening again with eight of nine Asian countries reporting longer delivery times.

“The spread of the Delta variant amid still-low vaccination rates in many ASEAN economies and China’s zero-tolerance Covid strategy has prompted governments to impose restrictions and order factory/port closures,” warned analysts at Nomura.

“Input shortages and low inventories will likely lead to production cuts and delayed shipments in Q3.” The uncertainty kept Chinese blue chips flat (.CSI300), though speculation of more fiscal stimulus offered some support.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) edged up 0.2% to a five-week high, helped by buying for the new quarter. Japan’s Nikkei (.N225) added 0.1%, while South Korea (.KS11) fell 0.6%. Nasdaq futures and S&P 500 futures were barely changed, while EUROSTOXX 50 futures eased 0.2% and FTSE futures 0.1%.

Wall Street has been preoccupied with second guessing U.S. August payrolls, due out on Friday, with the task made all the more uncertain by a disappointing reading on ADP private payrolls but a solid ISM survey of manufacturing.

Median forecasts are for a strong rise of 750,000 jobs, but they range from 375,000 to 1.02 million with the ADP report prompting speculation the risks are to the downside. Yet a soft number could be positive for risk assets since it would lessen pressure for an early tapering from the Federal Reserve.

“A print closer to 400k rather than 800k effectively means that the Fed’s condition of “further substantial progress” in the labour market will take longer to materialise, thus delaying the tapering decision from September to November,” said Rodrigo Catril, a senior FX strategist at NAB.

“Bad news in the labour market are good news for risk assets given the punchbowl will remain well liquefied for a bit longer.”

ECB HAWKS SOUND OFF

Amid the jobs chatter, 10-year Treasury yields eased back to 1.30% and away from the recent top of 1.375%, while the U.S. dollar index touched a one-month low. The euro also reached its highest since early August at $1.1856 and was last holding steady at $1.1840 .

The single currency was aided by hawkish comments from Bundesbank President Jens Weidmann who cautioned against inflation risks and called for a slowdown in bond buying by the European Central Bank.

In contrast, the Bank of Japan shows no sign of tapering its massive purchases as the country remains mired in a decades-long battle with deflation.

That kept the dollar firm at 110.00 yen and comfortably within the tight 108.71 to 110.79 range that has lasted for the past two months.
Commodities would likely benefit from any delay in Fed tapering, helping underpin gold at $1,813 an ounce but short of resistance around $1,823.

Oil prices eased after OPEC+ agreed to stick to a policy of adding 400,000 barrels per day a month to the market, though it also defied pressure for an even larger increase.

“Ignoring calls from the White House for further barrel increases, we think that OPEC+ will stay on this current course unless there is a clear deterioration in the demand outlook,” said analysts at RBC Capital Markets in a note.

“Moreover, we reiterate that if there is a price bias for the majority of the OPEC+ membership, it is to the upside given the high fiscal breakevens of member states.”Brent slipped 52 cents to $71.07 a barrel, while U.S. crude lost 59 cents to $68.00.

Editing by Simon Cameron-Moore

LONDON/DUBAI (Reuters) – OPEC+ revised up its 2022 oil demand forecast ahead of a meeting of the oil producing group on Wednesday, amid U.S. pressure to raise output more quickly to support the global economy.

Two OPEC+ sources said the group’s experts revised the 2022 oil demand growth forecast to 4.2 million barrels per day (bpd), up from the previous forecast of 3.28 million bpd.

OPEC+ expects global oil demand to grow by 5.95 million bpd in 2021 after a record drop of about 9 million bpd in 2020 because of the COVID-19 pandemic. The Organization of the Petroleum Exporting Countries and allies led by Russia, a group known as OPEC+, meet on Wednesday at 1500 GMT to set policy.

Sources told Reuters the meeting was likely to roll over existing policies despite pressure from the United States to pump more oil.
However, the higher demand forecast strengthens the case for a speedier output increases by OPEC+ as benchmark Brent crude traded above $72 per barrel, close to multi-year highs.

The demand forecast revision came during the OPEC+ joint technical committee (JTC), which on Tuesday presented an updated report on the state of the oil market in 2021-2022.

On Tuesday, OPEC+ sources said the report, which has not been made public, forecast a 0.9 million bpd deficit this year as global demand recovers.The report had initially forecast a surplus of 2.5 million bpd in 2022 but this was later revised to a smaller surplus of 1.6 million bpd due to stronger demand, the sources said.

As a result, commercial oil inventories in the OECD, a group of mostly developed countries, would remain below their 2015-2019 average until May 2022 rather than the initial forecast for January 2022, the JTC presentation showed, according to the sources.

Reporting by OPEC team; Writing by Dmitry Zhdannikov; Editing by David Goodman and Edmund Blair