Oil Drops to 4-Year Low as Ruble Falls Europe Stocks Drop
By Nick Gentle and Stephen KirklandNov 13, 2014 8:17 AM ET
8 CommentsEmailPrintSpeed
Share
Save
Photographer: Yasser al-Zayyat/AFP/Getty Images
Kuwaiti Oil Minister Ali Al-Omair said OPEC won’t cut production at its Nov. 27 meeting, even after oil slid into a bear market. Close
Kuwaiti Oil Minister Ali Al-Omair said OPEC won’t cut production at its Nov. 27... Read More
Close
Open
Photographer: Yasser al-Zayyat/AFP/Getty Images
Kuwaiti Oil Minister Ali Al-Omair said OPEC won’t cut production at its Nov. 27 meeting, even after oil slid into a bear market.
Related
Brent crude dropped to a four-year low amid signs OPEC won’t cut output, and the ruble weakened as the European Union and the U.S. weighed further sanctions against Russia’s economy. European stocks erased gains as energy producers declined.
Brent oil slid 1.9 percent to $78.86 a barrel at 8:15 a.m. in New York. The Stoxx Europe 600 Index fell 0.2 percent and Standard & Poor’s 500 Index futures advanced less than 0.1 percent. Average yields on investment-grade bonds in euros fell to a record 1.16 percent and now yield the least relative to notes in dollars since December 2005, according to Bank of America Merrill Lynch data. The pound retreated to a 14-month low against the dollar. Russia’s ruble declined against all of its 31 major peers.
Saudi Arabia’s Oil Minister Ali Al-Naimi dismissed talk of an OPEC price war. About $3.4 trillion has been added to the value of global stocks in the past four weeks as U.S. corporate earnings beat estimates and the Bank of Japan boosted stimulus measures. Ericsson AB, the world’s biggest maker of wireless networks, led technology stocks higher in Europe on plans to cut costs by $1.2 billion.
Among mergers and acquisitions, Warren Buffett’s Berkshire Hathaway Inc. agreed to buy the Duracell battery business fromProcter & Gamble Co. for $4.7 billion in stock. DreamWorks Animation SKG Inc. jumped 24 percent in early New York trading after people briefed on the matter said Hasbro Inc. is in talks to acquire the film studio.
Brent for December settlement fell to as little as $78.71 a barrel, the lowest since September 2010. West Texas Intermediate was down 1.2 percent at $76.26 a barrel, set for its lowest settlement price since 2011.
Price War
Oil has collapsed into a bear market as leading OPEC members resisted calls to cut production and instead reduced export prices to the U.S., where output has climbed to the highest level in more than three decades.
Saudi Arabia is committed to a stable market and concern of a price war within the Organization of Petroleum Exporting Countries “has no basis in reality,” Al-Naimi said yesterday in Acapulco, Mexico. Saudi discounts offered to Asian customers in October triggered speculation that OPEC’s largest member was seeking to preserve market share. The group is scheduled to meet Nov. 27 in Vienna.
U.S. crude inventories probably rose for a sixth week, expanding by 1.1 million barrels through Nov. 7, according to the median estimate in a Bloomberg survey of nine analysts before data from the Energy Information Administration today.
By Nick Gentle and Stephen KirklandNov 13, 2014 8:17 AM ET
8 CommentsEmailPrintSpeed
Share
Save
Photographer: Yasser al-Zayyat/AFP/Getty Images
Kuwaiti Oil Minister Ali Al-Omair said OPEC won’t cut production at its Nov. 27 meeting, even after oil slid into a bear market. Close
Kuwaiti Oil Minister Ali Al-Omair said OPEC won’t cut production at its Nov. 27... Read More
Close
Open
Photographer: Yasser al-Zayyat/AFP/Getty Images
Kuwaiti Oil Minister Ali Al-Omair said OPEC won’t cut production at its Nov. 27 meeting, even after oil slid into a bear market.
Related
Brent crude dropped to a four-year low amid signs OPEC won’t cut output, and the ruble weakened as the European Union and the U.S. weighed further sanctions against Russia’s economy. European stocks erased gains as energy producers declined.
Brent oil slid 1.9 percent to $78.86 a barrel at 8:15 a.m. in New York. The Stoxx Europe 600 Index fell 0.2 percent and Standard & Poor’s 500 Index futures advanced less than 0.1 percent. Average yields on investment-grade bonds in euros fell to a record 1.16 percent and now yield the least relative to notes in dollars since December 2005, according to Bank of America Merrill Lynch data. The pound retreated to a 14-month low against the dollar. Russia’s ruble declined against all of its 31 major peers.
Saudi Arabia’s Oil Minister Ali Al-Naimi dismissed talk of an OPEC price war. About $3.4 trillion has been added to the value of global stocks in the past four weeks as U.S. corporate earnings beat estimates and the Bank of Japan boosted stimulus measures. Ericsson AB, the world’s biggest maker of wireless networks, led technology stocks higher in Europe on plans to cut costs by $1.2 billion.
Among mergers and acquisitions, Warren Buffett’s Berkshire Hathaway Inc. agreed to buy the Duracell battery business fromProcter & Gamble Co. for $4.7 billion in stock. DreamWorks Animation SKG Inc. jumped 24 percent in early New York trading after people briefed on the matter said Hasbro Inc. is in talks to acquire the film studio.
Brent for December settlement fell to as little as $78.71 a barrel, the lowest since September 2010. West Texas Intermediate was down 1.2 percent at $76.26 a barrel, set for its lowest settlement price since 2011.
Price War
Oil has collapsed into a bear market as leading OPEC members resisted calls to cut production and instead reduced export prices to the U.S., where output has climbed to the highest level in more than three decades.
Saudi Arabia is committed to a stable market and concern of a price war within the Organization of Petroleum Exporting Countries “has no basis in reality,” Al-Naimi said yesterday in Acapulco, Mexico. Saudi discounts offered to Asian customers in October triggered speculation that OPEC’s largest member was seeking to preserve market share. The group is scheduled to meet Nov. 27 in Vienna.
U.S. crude inventories probably rose for a sixth week, expanding by 1.1 million barrels through Nov. 7, according to the median estimate in a Bloomberg survey of nine analysts before data from the Energy Information Administration today.
