Oil rises on surprise draw in US stocks, prospect of OPEC action

A pumpjack in Signal Hill, California. (AFP)
Updated 23 October 2019

Oil rises on surprise draw in US stocks, prospect of OPEC action

  • OPEC, allies to mull deeper production cuts
  • Weak demand growth outlook weighs on sentiment

HOUSTON: Oil rose above $60 a barrel on Wednesday after government data showed a surprise draw in US crude stocks and as the prospect of deeper output cuts by OPEC and its allies offered support.
US crude stocks fell by 1.7 million barrels last week as refineries hiked crude runs by 429,000 barrels per day (bpd), the Energy Information Administration said. Analysts had expected an increase in US inventories of 2.2 million barrels.
Brent crude futures were up 44 cents, or 0.74%, to $60.14 a barrel at 10:13 a.m. CDT . West Texas Intermediate (WTI) crude futures for December delivery were up 48 cents, or 0.88%, to $54.96 per barrel.
Oil prices had fallen earlier in the session on data from industry group the American Petroleum Institute showing US stocks rising more than analysts had expected, by 4.5 million barrels to 437 million barrels.
The US Energy Department’s report “has put some buyers in the market, but it will be interesting to see if it lasts. While this will distract from demand destruction, the market will eventually come back to it,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.
The draw in US oil stocks appeared to have been caused by temporary market factors including higher refinery runs, rather than a fundamental firming of oil demand, and investors are still concerned about the global economy following reports of slowing growth in China and Europe, McGillian added.
A larger-than-expected decline in US gasoline stocks also supported prices, analysts said. Gasoline stocks fell by 3.1 million barrels, compared with analysts expectations of a 2.3 million-barrel drop.
“The continued decline in product inventory makes for a bullish report,” said John Kilduff, a partner at Again Capital LLC in New York. “Gasoline numbers are summer-like; that’s endemic of a good economy (in the US) and people driving to work.”
Also helping to underpin prices, the Organization of the Petroleum Exporting Countries is mulling whether to deepen production cuts amid concerns of weak demand growth next year.
OPEC and other oil producers including Russia, a group known as OPEC+, have pledged to cut production by 1.2 million barrels per day (bpd) until March 2020. OPEC and other non-members are scheduled to meet again Dec. 5-6.
“With the headwinds of strong US producer hedging and high freight rates fading, we expect stronger Brent timespreads and higher prices in coming weeks, with upside risk to our year-end $62 per barrel forecast,” Goldman Sachs said in a note.
The investment bank expects Brent prices to continue trading around $60 a barrel in 2020.


Apple, Google drop Fortnite from app stores over payments

Updated 14 August 2020

Apple, Google drop Fortnite from app stores over payments

  • Google said Fortnite will remain available on Android, just not through its app store
  • Apple and Google both take a 30% cut from in-app revenue purchases in games

NEW YORK: Apple and Google dropped the popular game Fortnite from their app stores after the game’s developer introduced a direct payment plan that bypasses their platforms.
Apple and Google both take a 30% cut from in-app revenue purchases in games, which has long been a sore spot with developers.
Fortnite is free, but users can pay for in game accoutrements like weapons and skins. Its developer, Epic Games, said in a blog post Thursday that it was introducing Epic Direct payments, a direct payment plan for Apple’s iOS and Google Play. Epic said the system is the same payment system it already uses to process payments on PC and Mac computers and Android phones.
Apple and Google said the service violates their guidelines.
“Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines regarding in-app payments that apply to every developer who sells digital goods or services,” Apple said in statement.
Google said Fortnite will remain available on Android, just not through its app store. Android users can download the app from other app stores, although that’s generally not an option for iPhone users.
Epic Games did not immediately return a request for comment. Epic’s Fortnite Twitter account said the company would debut a new short film called “Nineteen Eighty-Fortnite,” a seeming parody of Apple’s iconic “1984” commercial that introduced the Macintosh computer. It has also filed a complaint against Apple in the US District Court in Northern California for dropping Fortnite.