Oil is on the rise in early morning trade on the back of a
rebound in Asian equities. Stocks gained there on the back of
prevailing bullish sentiment in China. Still, there are concerns
about the near-term impact of tropical storm Danielle and any
disruptions to drilling and transport in the Atlantic region.
Worries about the pace of U.S. economic recovery continue to weigh
on oil prices.
Gold, meanwhile, is lower as traders take a breather from
shoring up the yellow metal. Gold is expected to trend higher in
coming weeks nonetheless as concerns about the strength of the
global economy continue to persist.
At 0755 ET, Brent crude is up 0.5% at $74.62 a barrel, while
light sweet crude is up 0.3% at $74.07 a barrel, and natural gas is
down 0.7% at $4.09 a million British thermal units.
Gold is down 0.1% at $1,227.90 an ounce, while silver too is
down 0.3% an ounce, and copper is 0.4% weaker at $3.29 a pound.
South Korea's National Pension Service said it is interested in
buying Chevron Corp's (
) 23.4% stake in Colonial Pipeline Co., and the agency is already
in talks with the pipeline operator. Local media have reported that
the fund will pay about $800 million for the stake.
Caltex Australia Ltd (CTX) reported a 50% decline in first half
operating profit due to a strengthening of the Australian dollar.
The country's largest oil refiner may cut jobs further to reduce
Monday marks the beginning of the $20 billion compensation fund
for economic victims of the Gulf of Mexico oil spill by BP plc (
). Its administrator, Kenneth Feinberg, however, is already facing
accusations that rules established to compensate claimants as it
allows those filing for an emergency payment to also sue BP at a
later date, but beyond that period claimants would forfeit the
right to file against the company. Some have argued that such a
rule will favor BP.
In the mining sector, BHP Billiton plc (
) is facing competition in its bid for Potash Corp of Saskatchewan
). China's Sinochem Group and Vale SA of Brazil (
) are also reportedly interested in bidding for the fertilizer