Nothing substantial to give rise to falling oil prices will come out of September’s OPEC meetings, Morgan Stanley’s Adam Longson told CNBC’s Brian Sullivan on “Power Lunch” Tuesday.
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WALL STREET: U.S. stocks eked out small gains on Tuesday. Oil prices closed lower, backtracking after an early rally.
Qatar’s Energy Minister Mohammad bin Saleh al-Sada attends a news conference following a meeting between OPEC and non-OPEC oil producers, in Doha, Qatar April 17, 2016.
MARKETS OVERSEAS: In Europe, Germany’s DAX rose 2.5 percent, while France’s CAC 40 gained 1.2 percent. The Standard & Poor’s 500 index gained five points, or 0.3 percent, to 2,186. While the second quarter wasn’t great, it was less bad.
He stated that “higher oil demand is expected in the third and fourth quarters”, leading to higher prices. The company also said it is undergoing a restructuring. The stock added $5.71 to $28.16.
RETAIL THERAPY: Retailers were among the biggest laggards. Gap sank 6.1 percent after reporting lower sales in the second quarter and in July.
There was a substantial in gasoline stocks of 3.9mn, which should provide further significant relief over bloated gasoline stocks, while distillates recorded a draw of 1.6mn barrels. Kohl’s also fell, shedding $1.14, or 2.9 percent, to $38.23. Target slid $2.56, or 3.4 percent, to $72.44, while Nordstrom lost $1.17, or 2.6 percent, to $43.60.
The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 2- million-barrel increase in crude supplies, a 4-million-barrel decline in gasoline stocks and a 1.5-million-barrel decrease in distillate inventories, according to a market participant.
OPEC announced that it will once again hold informal meetings from September 26 through September 28 to address issues such as overproduction that have recently driven oil prices down.
Benchmark U.S. crude was down 20 cents, or 0.5 percent, to $42.80 per barrel in NY.
In addition, the price of Brent crude oil this year is expected to average some US$42 per barrel, while West Texas Intermediate (WTI) crude oil prices are forecast to be slightly less than Brent. Britain’s FTSE 100 added 0.6 percent. Hong Kong’s Hang Seng index fell 0.1 percent, while China’s Shanghai Composite Index gained 0.7 percent. Crude oil stocks were 36.6% higher than the five-year average through the last reporting period.
DATA: The Japan’s government said earlier in the day that the country’s core private-sector machinery orders grew a seasonally adjusted 8.3 percent in June from May, a rebound from two straight months of decline, Kyodo reported.
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In metals trading, the price of gold rose $5.40, or 0.4 percent, to $1,347 an ounce.
