Oil is trending higher in early morning trade as global equities
rise on renewed hopes for Europe as banks sought out less financing
from the European Central Bank than expected. Traders will be
eyeing the release of the latest weekly crude inventories data by
the U.S. Department of Energy, with analysts expecting stockpiles
to have decreased.
Gold too is gaining momentum as the dollar weakened against the
euro, enticing investors to buy on dips as the yellow metal's
allure as a safe haven persists.
At 0750 ET, Brent crude is up 0.7% at $75.93 a barrel, while
light sweet crude is also 0.7% stronger at $76.50 a barrel, and
natural gas is 1.3% weaker at $4.49 a million British thermal
Gold is up 0.2% at $1,244.60 an ounce, while silver is up 0.6%
to $18.71 an ounce, and copper is up 1.2% at $2.95 a pound.
BP plc (
) is up over 5% pre-market on the NYSE as the company plans to
establish an emergency fund financed by the oil industry to help
pay for costs concerning the Gulf of Mexico cleanup, according to
the Financial Times. The company has also been the subject of
As for BP's Russian joint venture TNK-BP (TNKBPI), it is looking
to borrow up to $1 billion by the end of this year, said its CFO
Jonathan Muir. It will not, however, look to issue eurobonds as a
source, having already issued a $1 Meanwhile, the joint venture may
be a buyer in BP's asset sales, particularly downstream assets in
Europe, according to CEO Maxim Barsky.
OAO Gazprom (
) said it owed $32 million to Minsk for gas transit through
Belarus. The country's First Deputy Prime Minister Vladimir
Semashko said that Belarus expects to sign an amendment to its
contract with Gazprom over gas transit prices on Thursday.
In the mining sector, Australia's Gryphon Ltd (
) is looking to take over Shield Mining Ltd (
) to create a West Africa-focused gold company. Gryphon is offering
one of its own shares for every three Shield shares. Gryphon has a
1.1 million ounce project in Burkina Faso, while Shield focuses on
mining for gold in Mauritania.
Meanwhile, South Africa will maintain its 26% black ownership
target for mining companies as announced by Mines Minister Susan
Shabangu in a speech. The 2004 Mining Charter requires companies to
sell 26% of their South African assets to black investors by 2014
to make amends for apartheid.
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