Oil is on the decline in early morning trade as worries about
China's economic strength weigh down the energy market. Beijing
reported that its July trade surplus surged unexpectedly to an
18-month high as domestic demand dwindled. Traders are also looking
to the release of the Federal Reserve's statement following the
FOMC meeting later in the day.
Gold is lower too as investors take a wait-and-see approach
before the FOMC statement release. Many analysts expect the Fed to
keep interest rates pat and keep the wording on monetary policy to
be little changed. That is seen to keep the greenback weak, which
in turn would increase the yellow metal's allure as an alternative
asset since it makes dollar-priced commodities cheaper for holders
of other currencies.
At 0755 ET, Brent crude is down 1.6% at $79.71 a barrel, while
light sweet crude is down 1.3% at $80.43 a barrel, and natural gas
is down 0.5% at $4.29 a million British thermal units.
Gold is down 0.4% at $1,198.30 an ounce, while silver is 0.6%
weaker at $18.13 an ounce, and copper is down 1.2% at $3.29 a
India's Oil and Natural Gas Corp (
) is looking to join forces with Russia's OAO Rosneft (
) to bid jointly for the Trebs and Titov fields in the Arctic
north, according to Russian daily Vedomosti. Neither company has
confirmed the report.
Delta Petroleum Corp (
) reported its second quarter loss shrinking on the back of higher
rig utilization and favorable pricing. The independent oil and gas
group also sees production to increase to 7.2 billion cubic feet
equivalent from 6.9 bcfe in the latter half of the fiscal year
after accounting for sale of non-core assets to Wapiti Oil &
Gas LLC in July.
As for Canada's TransAtlantic Petroleum Ltd (
), it reported its second quarter loss widening as total costs and
expenses nearly tripled from a year ago.
In the mining sector, European Goldfields Ltd (
) reported going into the red in the second quarter, CFO Tim
Morgan-Wynne expects the company to continue posting a loss this
year, but may return to a small profit next year, according to
ArcelorMittal South Africa Ltd (
) said it will buy all shares in Imperial Crown Trading, which owns
a portion of the prospecting rights in Kumba Iron Ore Ltd's (
) Sishen mine. The ArcelorMittal unit will pay about $111 million