SYDNEY: Oil prices skidded on Monday after Saudi-Russian negotiations to cut output were delayed, keeping oversupply concerns alive, while stocks jumped as investors were encouraged by a slowdown in coronavirus-related deaths and new cases.
In currency markets, sterling fell after British Prime Minister was admitted to hospital following persistent coronavirus symptoms as the pandemic rapidly spreads.
Brent crude fell as much as $3 in early Asian trading after Saudi Arabia and Russia postponed a meeting over a potential pact to cut production to Thursday.
Analysts said the news could lead to some sell-off in currency markets too.
Also weighing on the pound were fears other senior government officials who were in the same briefing as Prime Minister Boris Johnson could be affected by the virus, said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto, Canada.
The pound fell 0.4% in early trade on Monday in a knee-jerk reaction and was last down 0.3% at $1.2222.
“It is stating the obvious to say the viral outbreak and the containment measures to fight it are central to market action,” said Michael McCarthy, chief market strategist at CMC Markets.
Indeed, equity investors looked at the positives with major European nations including France and Italy reporting lower fatality rates.
US stock futures jumped more than 1.5% in early Asian trading on Monday after US President Donald Trump expressed hope the country was seeing a “levelling off” of the coronavirus crisis.
The gains came despite New York Governor Andrew Cuomo cautioning that it was not yet clear whether the crisis in the state had reached a plateau. Investors took solace from the fact that COVID-19 cases appeared to be reaching a peak in Europe with Italy seeing the number of patients in intensive care falling for the second consecutive day.
In Asia, Australia’s benchmark index added 0.5%, Japan’s Nikkei was up 0.2% while South Korea’s KOSPI index climbed 1.4%.
That left MSCI’s broadest index of Asian shares outside of Japan up 0.1%. China markets were closed for a public holiday.
“Focus in markets will now turn to the path out of lockdown and to what extent containment measures can be lifted without risking a second wave of infections,” National Australia Bank analyst Tapas Strickland wrote in a note.
“Key to a strong rebound in China will be the ongoing lifting of containment measures with Wuhan – the epicenter of the outbreak – set to lift containment measures on April 8.”
Strickland, however, noted many in China were still subject to social distancing and isolation restrictions to prevent a resurgence in infections.
The pandemic has claimed more than 64,000 deaths as it further exploded in the United States and the death toll climbed in Spain and Italy, according to a Reuters tally.
Concerns about heavy damage to the global economy have pushed investors into the perceived safety of government bonds where yields are at or near all-time lows.
Elsewhere in currencies, the dollar was up a touch against the yen at 108.58.. The euro was barely moved at $1.0803 while the risk sensitive Australian dollar was up 0.2% at $0.6004.
In commodities, Brent crude futures slipped 6.2%, or $2.13, to $31.98 a barrel while US crude dived 7.4%, or $2.12, to $26.12.
Spot gold was down 0.2% at $1,612.9 an ounce.
Oil prices fall sharply as OPEC+ meeting delayed, stocks jump on virus slowdown
https://arab.news/p747h
Oil prices fall sharply as OPEC+ meeting delayed, stocks jump on virus slowdown
- British pound skids as PM Johnson admitted in hospital
- Equity investors focus on slowdown in COVID-19 death rate
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
