BW Offshore swings to loss

first_imgFPSO BW Adolo; Source: BW OffshoreFPSO operator BW Offshore booked a loss for the second quarter of the year but the company is experiencing improved FPSO market activity. According to BW’s report on Friday, the company’s operating revenues for the second quarter of 2018 were $200.2 million compared to $163.4 million in the prior-year period.The company recorded a net loss of $7.5 million for the second quarter 2018 compared to a profit of $5.2 million in the same period last year.Looking ahead, the FPSO operator said that offshore production of oil and gas is expected to decline after several years of under-investment. This will likely become more evident in coming years, as production tied to investments made in the previous up-cycle has now started and will start to decline. The global balance of crude oil supply and demand has tightened further. Combined with lower break-even costs as a result of increased cost efficiency, this is expected to lead to sanctioning of new projects which will improve the market outlook for offshore field developments, BW said.Initially, the company expects increased focus on incremental investments to existing infrastructure, while more green-field investments may emerge later in the cycle.BW Offshore noted it is experiencing improved FPSO market activity as the majority of its fleet remains on long-term contracts with national and independent oil companies.It is important to note that BW Offshore’s subsidiary, BW Energy, made an oil discovery in the Ruche North East Marin-1 (DRNEM-1) well drilled in the Dussafu Marin PSC, offshore Gabon.BW’s Dussafu development is progressing according to plan and start- up from the Dussafu field is expected in late September or early October this year.Offshore Energy Today Stafflast_img read more

Warriors shut down Huskies, open league play with win

first_imgBella Stone popped off for 20 points and the Del Norte Warriors girls basketball team put away the the Fortuna Huskies 53-39, handing the Huskies their second Big 5 Conference loss in as many games while securing league win number one for themselves in what was the Warriors’ conference opener, Friday night at Fortuna High.With Friday’s win Del Norte (1-0, 12-1) extended its winning streak to 10 games and put the Big 5 on notice that it is poised to contend for the league crown in a year which …last_img

Design of Life Update: Butterflies

first_imgIllustra Media’s trilogy of documentaries only began to uncover the wonders of life. Here are updates on the series’ featured animals, this one on butterflies.Watch an amazing time-lapse video of butterfly wings developing in the chrysalis made by Nipam Patel of University of California at Berkeley. His lab assistant was able to extract tissue and grow it under the microscope.In PNAS, Japanese scientists discuss the elaborate chemical dance going on during insect metamorphosis. Here’s just enough jargon to indicate how complex the process is in silkworm moths: “Based on these results, we propose a mechanism in which JH-inducible Kr-h1 directly binds to the KBS site upstream of the E93 locus to repress its transcription in a cell-autonomous manner, thereby preventing larva from bypassing the pupal stage and progressing to precocious adult development.” You get the idea. Figuring all this out could keep PhD scientists busy for a long time, but caterpillars know just what to do.Programmed cell death in the chyralis (Illustra Media)All insects undergo metamorphosis, some not quite as complete as those of butterflies. Live Science shows new X-ray images of the “dramatic physical transformation” of bluebottle blowfly maggots from pupae into adults. (Since this species of fly plays a key role in body decay and quickly finds decomposing flesh, forensic scientists often use their presence as clues for time of death.) The 10-day process of metamorphosis of the blowfly has now been seen as never before:Researchers used X-ray imaging to peer at the developing insect as it nestled inside an opaque shell called a puparium. They watched as the larval structures melted away and mature body parts sprouted in their place….It took only about 1 hour and 15 minutes for the general shape of the adult body to emerge, the scientists said. The rest of the pupation — which lasted about nine days — was spent fine-tuning the development of all the insect’s new parts, the researchers said.Sadly, Monarch butterfly numbers are still on the decline. says that they are down 27% in the mountain forests of Mexico where Monarchs spend the winter, as the Illustra film describes so wonderfully. Part of the decline is attributable to late winter storms that felled 100 acres of trees in the habitat zone. Other reasons include continued logging by Mexican farmers and decline of milkweed on which the migrating butterflies depend.A chart in another article shows Monarch butterfly birthplaces by region. Data are being gathered by researchers from the University of Guelph in order to conserve the beloved winged wonders.Lastly, reports that a museum is attracting butterfly visitors as well as humans. Patricia Change of the University of Panama studied the lepidopteran insects around the new Ghery’s Biodiversity Museum in Panama City. She found six butterfly families and eight moth families represented in the 326 specimens she collected. Apparently the brightly-colored walls of the museum draw them in for a closer look.A few clips from the Illustra film are available for watching on the website. Hopefully they will inspire you to purchase and share this inspiring film with your classroom, church, Bible study, family and friends. Copies in quantity to use for ministry can be purchased here in convenient quicksleeve format.(Visited 82 times, 1 visits today)FacebookTwitterPinterestSave分享0last_img read more

Geocaching in Space Event Center

first_img[Click here for information the Seattle Geocaching in Space event]Mark your calendar for early November, 2013! Geocaching is rocketing into space once again. Astronaut Rick Mastracchio will deliver a Travel Bug® to the International Space Station. Mastracchio will be using the Travel Bug as an educational tool to help teach students around the world about geography and provide other educational lessons. The mission is currently scheduled to launch from Kazakhstan at 4:08 GMT on November 7  and we want you all to be there (at least in spirit). That means the launch is planned to liftoff at 5:08 a.m. in Berlin and November 6 at 8:08 p.m. in Los Angeles. Find out here what time the launch is in your part of the world! Share with your Friends:More We hope that our tips will help make your geocaching in space event a superstar. Now we want to know from you, what you wouldn’t want to miss at a space event you are attending! Tell us in the comments below.A few things to remember:Scheduled Launch Date: November 6 (EST), 2013Watch Launch Live*: at 04:08 a.m. GMT on November 7 (11:08 p.m. EST on November 6) – Convert to your time zone here*NASA TV will broadcast the launch live. You can download a free NASA TV app for Android or iPhone, watch NASA TV live on their, or watch the launch on the NASA channel on your cable TV. More questions? Check out NASA TV FAQs here.Facebook Geocaching in Space Event Page: Coming Soon!Geocaching in Space Souvenir Image: Coming Soon!Geocaching in Space Souvenir Patch:  Proceeds go to the educational charity Donorschoose.orgCheck out the Geocaching in Space FAQ to have all your questions answered! Every geocacher who attends a Geocaching Event on November 6 or 7, 2013 will be awarded a “Geocaching in Space” souvenir.*Quick note: As this is a  real-deal rocket launch, it could be delayed. In this case we’ll issue the souvenir for attending an event on November 6 or 7, and for attending an event on the the actual launch date.If you feel that you are an expert when it comes to Geocaching Event guidelines and are up to host a space event in your area, take a look at these tips to help your guests have an out of world experience:1.) Think ahead. Neil Armstrong did not spontaneously decide to hop on a rocket and fly to the moon one day. Rumor has it there was some careful planning (and serious calculations!) involved. The same should apply to your Geocaching Event. Do you need to make reservations for a venue? Do you need to craft or decorate? Are there any questions you have to clear up before submitting your Event Cache? Keep in mind that you have to submit your Geocaching Event at least 14 days prior to the rocket launch, which means October 22 or 23 are the cut off days for your online submission.2.) Think collaboration. You’ll want to get a crowd together to celebrate this once in a Trackable’s lifetime opportunity. To maximize the number of geocachers at your event, check to see if there is already another event published in your area. If there’s already an event, be a team player! See if you can help the event host with planning their event. You can share the load and maybe even serendipitously make a new friend.3.) Think atmosphere. Unfortunately, NASA has a few rules about who gets to go to space, so we can’t all be out there with Rick Mastracchio, but that shouldn’t stop you from making your Event location look “spacetastic.” Here are a few ideas to space up your place:Hang up dark fabric sheets and stick a few aluminium foil stars on them.Remember the glow stars you  stuck to the wall next to your bed when you were a kid (or an adult, we’re not judging)? It is time to get those out of the old dusty boxes in your basement.Collect a few paper towel rolls and get together with your family on a rainy day to craft some mini-rockets. Then have a contest at the event to see who can throw them the furthest up into space (or the air, as we call it on Earth).We are sure you have many more ideas on how to decorate for the launch too. Share them with us in the comments below.4.) Think astronauts. What are astronauts like? They are really, really smart—just like geocachers.  To further improve the brain power of the international geocaching community, put together a little quiz for the event to keep everybody entertained and your brain cells in action. For example: “What year did the first man set foot on the moon?” or (some would say) more importantly, “When was the first geocache hidden?” You see the possibilities are endless and so is the universe (or at least it’s really, unimaginablybig).American astronaut Rick Mastracchio SharePrint RelatedGeocaching in Space FAQOctober 9, 2013In “Community”Behind the Scenes: My Travel Bug®’s Mission to SpaceOctober 16, 2013In “Community”800+ Events Celebrate Geocaching Launch into SpaceOctober 21, 2013In “Community”last_img read more

Toronto Passive: Removable Basement Floors

first_imgWalls, Roof, and an ElevatorDesigning a High-Performance Home A basic decision early in the design of a superinsulated building is the strategic choice of interior and exterior insulation placement and thermal mass. This a strategic decision because it has far-reaching implications and ripple effects.Think of the building as a shell on all sides, including the parts in the ground. If we are designing an airtight envelope without thermal bridging, then we want to avoid having some of the insulation inside, and some on the outside. It can be done, but this frequently leads to thermal bridges and air-sealing problems.For example, if we have insulation under the footings (outside the structure of the shell), but then we want to have insulation inside the basement walls, how do we to connect the insulation under the footings to the insulation inside the basement? Making this more difficult, insulation materials are generally weak and soft, while structural materials are hard and conduct heat. Editor’s Note: Lyndon Than is a professional engineer and Certified Passive House Consultant who took a year off from work to design and build a home with his wife Phi in North York, a district of Toronto, Ontario. A list of Lyndon’s previous blogs at GBA appears below. For more, you can follow his blog, Passive House Toronto. All About BasementsFixing a Wet Basement Joe Lstiburek Discusses Basement Insulation and Vapor RetardersHow to Insulate a Foundation Flooring can be removed for accessOur basement floors are installed over our interior insulation (15 inches of Roxul, rated at approximately R-54), which is located just above the concrete slab. As posted earlier, the flooring is removable and is a common material — regular construction 2×12 lumber. That means we can remove and replace pieces, but we also can remove the flooring to look underneath.The insulation consists of an R-32 batt under the 2×6 floor joists, plus R-22 batts in the spaces between the floor joists. Below the batts is landscape fabric that is held off the concrete by pressure-treated lattice and blocks. This assembly keeps the insulation away from the concrete while providing an unimpeded drainage path for any water that does get into the basement. Nothing in the assembly will retain water.We were able to get the pressure-treated lattice super cheap — it was culled material, an entire load for $50 — and the landscape fabric was about $8 for 150 square feet.We’re currently pretty happy with these floors, and the system feels very solid to walk on, as if the floors were resting directly on concrete. It turns out the wood has shrunk a little in the two months since we installed it, but only the pieces that were wetter. Some planks did not shrink at all.Some astute observers have commented that the floors will allow moist interior air to go into the spaces below. What will happen to this moist air when it reaches the cold concrete some 17 inches below? Well, we have Tyvek under the floor boards in one area to prevent this bulk movement of air, but most of the floor is left without any kind of air barrier.Since the flooring is removable, we can make a correction if this turns out to be an issue, but I have a feeling the issue is fairly minor for a couple of reasons. If we think of regular basements, many have no insulation under the concrete slabs, and they are perhaps a bit damp on muggy, hot summer days. In Toronto’s climate, this problem is short-lived. In our case, there is a floor assembly blocking the bulk movement of air to some degree, and in addition, the space beneath our floors may be warm for much of the summer due to our under-floor (sub-slab) heat storage strategy. This raises the temperature of the basement concrete slab right when the chances of hot moist air condensing on it may be highest, which should reduce that whole issue quite a bit. To simplify the design and construction greatly, and improve the effectiveness of the insulation system, work to have all the insulation either outside the shell, or inside the structural shell. Cross-overs are to be avoided. In our case, we decided to place all the insulation inside the shell, and forego the benefits of thermal mass. I believe thermal mass benefits are less well proven than insulation benefits, and that “thermal” mass can be achieved without “mass” (for example by the use of water — a very thermally massive material without much mass that can be moved around). BLOGS BY LYNDON THAN RELATED ARTICLES Hedging our betsHowever, just in case there is a problem we placed some sensors at the bottom of the floor insulation in three locations. The photo at left shows a small pump with tubing, a water level sensor, and a temperature/humidity sensor in the background.In the event water pools on low areas of the basement slab, a small pump will carry it to the sump.The sensors are inexpensive — about $5 each. The pump is from Princess Auto and was about $20. We had some problems with our basement floor pour. There was not enough slope in some areas, and during the big Toronto flood in July 2013, we noticed a little water in three locations on the floor. We marked these spots and placed these little pumps to transfer any water that does collect there to the sump pit.Later, as the systems become live, we will be able to report the fluctuations in temperature and humidity at the bottom of our basement floor assemblies. We will also probably place sub-slab soil temperature sensors as well, one day…We screwed the 2×12 pine to the joists, burying the screw heads 1/8 inch so we could sand the floor and get a somewhat finished surface later. The main reason for using this kind of floor was low cost. We were able to purchase the material at a 25% discount from regular contractor pricing, about $1.25 a square foot. Air sealing is not required at this floor. This was determined from previous airtightness test on the building, so we know we are already down to Passive House levels of airtightness.last_img read more

Wrist pain

first_imgDefinitionWrist pain is any pain or discomfort in the wrist.Alternative NamesPain – wristCausesCarpal tunnel syndrome: A common cause of wrist pain is carpal tunnel syndrome. You may feel aching, burning, numbness, or tingling in your palm, wrist, thumb, or fingers. The thumb muscle can become weak, making it difficult to grasp things. Pain may extend up to your elbow.Carpal tunnel syndrome occurs when the median nerve gets compressed at the wrist because of swelling. This is the nerve in the wrist that allows feeling and movement to parts of the hand. Swelling can occur if you:Do repetitive movements with your wrist, such as typing on a computer keyboard, using a computer mouse, playing racquetball or handball, sewing, painting, writing, or using a vibrating toolAre pregnant, menopausal, or overweightHave diabetes, premenstrual syndrome, an underactive thyroid, or rheumatoid arthritisInjury: Wrist pain with bruising and swelling is often a sign of an injury. Signs of a possible broken bone include deformed joints and inability to move the wrist, hand, or a finger. Other common injuries include sprain, strain, tendinitis, and bursitis.Arthritis: Arthritis is another common cause of wrist pain, swelling, and stiffness. There are many types of arthritis:Osteoarthritis occurs with age and overuse.Rheumatoid arthritis generally affects both wrists.Psoriatic arthritis accompanies psoriasis.Infectious arthritis is a medical emergency. Signs of an infection include redness and warmth of the wrist, fever above 100F, and recent illness.Other CausesGout: This occurs when your body produces too much uric acid, a waste product. It forms crystals in the joints, rather than being excreted in the urine.Pseudogout: This occurs when calcium deposits in the joints, causing pain, redness, and swelling. The wrists and knees are most often affected.Home CareadvertisementFor carpal tunnel syndrome, you may need to make adjustments to your work habits and environment:Make sure that your keyboard is low enough that your wrists are not bending upward while you type.Take plenty of breaks from activities that aggravate the pain. When typing, stop often to rest the hands, if only for a moment. Rest your hands on their sides, not the wrists.An occupational therapist can show you ways to ease pain and swelling and stop the syndrome from coming back.Over-the-counter pain medications, such as ibuprofen or naproxen, can relieve pain and swelling.Various, typing pads, split keyboards, and wrist splints (braces) are designed to relieve wrist pain. These may help symptoms. Try a few different kinds to see if any help.You may only need to wear a wrist splint at night while you sleep. This helps reduce the swelling. If this does not help, you may need to wear the splint during the day as well.Apply warm or cold compresses a few times during the day.For a recent injury:Rest your wrist. Keep it elevated.Apply ice to the tender and swollen area.Take over-the-counter pain medication, such as ibuprofen or acetaminophen.Wear a splint for several days. Wrist splints can be purchased at many drugstores and medical supply stores.For non-infectious arthritis:Do flexibility and strengthening exercises every day. Work with a physical therapist to learn the best and safest exercises for your wrist.Try the exercises after a hot bath or shower so that your wrist is warmed up and less stiff.Do notdo exercises when your wrist is inflamed.Make sure that you also rest the joint. Both rest and exercise are important when you have arthritis.When to Contact a Medical ProfessionalGet emergency care if:You are unable to move your wrist, hand or a finger.Your wrist, hand, or fingers are misshapen.You are bleeding significantly.Call your doctor right away if:You have a fever over 100F.You have a rash.You have swelling and redness of your wrist and you have had a recent illness (like a virus or other infection).Call your doctor for an appointment if:You have swelling, redness or stiffness in one or both wrists.You have numbness, tingling, or weakness in the wrist, hand, or fingers with pain.You have lost any muscle mass in the wrist, hand, or fingers.You have been following self-care treatments for two weeks, but still have pain.What to Expect at Your Office VisitYour health care provider will perform a physical exam, and ask about your symptoms and history, such as:When did the wrist pain begin?Did it occur suddenly and severely or gradually and mildly?Is the pain constant, or does it come and go?Is the pain worse in the morning or at night?Does it go away without self-care?Is the pain sharp, throbbing, or burning? Is there numbness or tingling in any of your fingers?Where exactly is the pain? Is it in both wrists? Does it extend into the fingers?Does the pain occur only with certain movements or positions?Does the pain prevent normal use of the wrist, hand, or arm?Is the pain worse with movement?What helps it? Is it better with immobilization to prevent movement? Does splinting the wrist or applying heat help?Do any medicines help?Is there joint pain elsewhere?Is there pain elsewhere, such as the neck?What medications are you taking?Have you had any recent injuries or illnesses?Are you involved in activities requiring repetitious hand and wrist movements, such as sewing, knitting, computer keyboard use?X-rays may be taken. If your health care provider thinks that you have an infection, gout, or pseudogout, fluid may be removed from the joint to examine under a microscope.advertisementAnti-inflammatory medicines may be prescribed. Injection with a steroid medicine may be done. Surgery may be needed to treat some conditions.PreventionTo prevent carpal tunnel syndrome:Adjust your keyboard so that you do not have to bend your wrist upward while typing.Take frequent breaks from activities that require wrist movement.Work with an occupational therapist.To prevent gout attacks:Limit alcohol.Lose weight if you are overweight.Drink plenty of water.Eat lower amounts of liver, anchovies, sardines, and herring.Your doctor may prescribe medication.ReferencesShebab R. Evaluation and diagnosis of wrist pain: a case-based approach. Am Fam Physician. 2013;87:568-573.Swigart CR. Hand and wrist pain. In: Firestein GS, Budd RC, GabrielSE, et al., eds. Kellys Textbook of Rheumatology. 9th ed. Philadelphia, Pa: Elsevier Saunders; 2012:chap 50.Review Date:4/16/2013Reviewed By:C. Benjamin Ma, MD, Assistant Professor, Chief, Sports Medicine and Shoulder Service, UCSF Department of Orthopaedic Surgery. Also reviewed by David Zieve, MD, MHA, Bethanne Black, and the A.D.A.M. Editorial Team.last_img read more

Golf: US beat Europe to regain the Ryder Cup

first_imgThe United States triumphed over Europe on the last day of the Ryder Cup, the golf tourney held every two years and played out this week at the Hazeltine National Golf Club in Chaska.The US team had a three-point lead starting the second and final day of play on Sunday, which included 12 singles matches, reports Efe.The European team came close to beating the Americans in the early going on Sunday, racking up a quick three points in the morning rounds and pulling even in the overall tally. (Ryder Cup: ‘Captain America’ Patrick Reed downs Rory McIlroy in duel of rare quality)Successive wins by Sweden’s Henrik Stenson over Jordan Spieth (3-2), Belgium’s Thomas Pieters over J.B. Holmes (3-2) and Spain’s Rafa Cabrera Bello over Jimmy Walker (3-2) gave the Europeans a little breathing room — and a good bit of momentum.However, Patrick Reed knocked off Northern Ireland’s Rory McIlroy in a fabulous face-off that wasn’t decided until a birdie putt on the 18th hole, and — with other wins during the day — the Americans were finally able to reclaim the Ryder Cup for the first time since 2008.Although the Europeans had got off to a fabulous start in the first three matches on Sunday, later in the day, US captain Davis Love had Brandt Snedeker, Brooks Koepka and Ryan Moore going up against their rivals, and it was Moore who triumphed over Lee Westwood and sealed the US victory, prevailing 17-11. (Lee Westwood questions Tiger Woods’ role in US Ryder Cup team)advertisementThat score recalls the leadership of the legendary Arnold Palmer, who died a few days ago and was paid tribute to by the US team all week. He had headed the memorable US victory in the Cup competition in Laurel Valley in 1975.Although European captain Darren Clarke said that he and his teammates were “obviously very disappointed”, he added that they all had to acknowledge the great achievement of Love and his team.With this year’s win, the US brings a halt to Europe’s three-Cup streak, including its wins in Celtic Manor in 2010, Medinah in 2012 and Gleneagles in 2014, and it will next defend its newly-recovered title in Paris in 2018.last_img read more

UPDATE Penton Media to File for Chapter 11 Bankruptcy

first_img In financial restructurings, it’s common for an equity exchange to happen between company owners and their lenders. The spokesperson, however, said there will be no changes in the company’s ownership, which includes MidOcean Partners and Wasserstein & Co. No layoffs are associated with the restructuring, she said. The Penton spokesperson, however, declined to say how much debt Penton carries and said she was not immediately sure what type of debt will be eliminated as part of the pre-packaged reorganization plan. In announcing the reorganization, Penton CEO Sharon Rowlands called the restructuring a “positive, strategic step” for Penton. “This restructuring will allow us to achieve a debt level that is more sustainable in the current economic environment. With a strengthened capital structure, we will be better positioned to fully leverage our operations, which have been and continue to be profitable.” In addition to the agreement, the company said a number of its existing shareholders have agreed to make “a significant” new investment in the company. When contacted by FOLIO:, a Penton spokesperson declined to say exactly how much of an investment will be made. Roland DeSilva, co-founder and managing partner of media investment bankers DeSilva + Phillips, called the Chapter 11 filing “unfortunate” but said the restructuring, overall, is a positive move for Penton. “Penton is going through an effective transition from a traditional b-to-b publisher to an information and digital media company,” he said. “This reorganization will be effective because Penton will now be able to manage the transition in the markets as opposed to managing the balance sheet and servicing the debt, which was the problem.” SEE ALSO: Printers, Banks Among Penton’s Largest Creditors Last fall, Penton hired global investment bankers Rothschild Inc. to assist with an evaluation of its current capital structure. MidOcean and Wasserstein acquired the company in 2006 for $194.2 million, plus assumption and payment of debt, putting the total value of the deal at $530 million. The company’s current debt has been estimated at close to $1 billion. Trade publisher Penton Media Tuesday announced that it has reached an agreement with its lenders on the terms of a restructuring through a pre-packaged Chapter 11 plan of reorganization. If approved, the plan is expected to eliminate $270 million in debt. Penton said it will operate with “business as usual” through the restructuring process. It said it expects to emerge from Chapter 11 within 30 to 45 days.last_img read more

Sujoy Ghoshs Badla beats Kahaanis week 1 box office collection mints USD

first_imgBadla box office collectionYouTube ScreenshotThe recently released movie Badla has hooked the nation with it’s intriguing and thrilling content.Sujoy Ghosh’s murder mystery starring Amitabh Bachchan and Taapsee Pannu, leaves the audience on the edge of the seat. Like Kahani shocked everyone with its brilliant thriller climax, Badla too offers a story full of twists and turns.As Badla completed its week 1 at the box office, the Sujoy Ghosh directorial has surpassed the collection of his last outing Kahaani by raking in Rs 38 crore at the Indian box office. Kahaani had garnered Rs 23.79 crore in its first week.Globally, the film has collected USD 2.45 million (few territories yet to report) in its first week.Post engaging the audience in the lucrative run of Kahani, Badla has been minting moolah at the box office presenting equally captivating, if not more, murder mystery.The crime thriller revolves around Taapsee Pannu’s character Naina who is stuck in a murder case.Playing Badal Gupta, a lawyer to Naina, Amitabh Bachchan has recreated the magic of Pink.Also starring Amrita Singh, Tony Luke and Manav Kaul in supporting roles, Badla has been gauging appreciation for the remarkable performances.Badla is presented by Red Chillies Entertainment in association with Azure Entertainment, Co-produced by Gaurav Verma and produced by Gauri Khan, Sunir Kheterpal and Akshai Puri , the crime thriller is directed by Sujoy Ghosh, starring Amitabh Bachchan and Taapsee Pannu in the lead roles is running successfully in theaters.last_img read more

Is the SaudiRussian oil agreement another false dawn

first_imgOil futures spiked by over 1.5% on Monday (5 September) after Saudi Arabia and Russia – two of the worlds leading oil producers – said they would work towards seeking solutions aimed at stabilising global crude supplies.With both countries collectively pumping over 20m barrels per day of oil between them, a statement issued at the G20 summit in China calling for cooperation to support oil markets by Moscow and Riyadh saw global benchmarks extend Fridays gains supported by Russian President Vladimir Putins comments.At 13:15 pm BST, the Brent front month futures contract was up 1.51% or ¢76 to $48.02 per barrel, while the West Texas Intermediate was up 1.69% or¢ 75 to $47.49 per barrel.Despite the statement being low on details, Russian Energy Minister Alexander Novak and his Saudi counterpart Khalid al-Falih made clear their desire to support the stability of the oil market ensuring a stable level of investment in the long term.Novak added that the agreement was a historic moment between OPEC members, among whom Saudi Arabia is the largest of oil producers, and non-members, where Russia leads the way.Saudi Arabia and Russia, along with other OPEC and non-OPEC producers, are scheduled to hold talks in Algiers on the sidelines of the International Energy Forum due to be held from 26 to 28 September.Analysts at Vienna-based JBC Energy said the announcement appeared to be on the cards for much of the weekend. It follows a meeting between Russian President Vladimir Putin and Saudi Deputy Crown Prince Mohammed bin Salman on the fringes of the G20 meeting in China.Market got further [demand-side] clarity, after China released data for its strategic petroleum reserve of crude oil, showing that the reserve had reached a level of 233m barrels at the beginning of 2016, up 43m barrels from mid-2015.Analysts at ABN Amro said the development was indicative of the fact that yet another verbal intervention by major producers was needed to trigger a recovery towards $50 per barrel.If oil prices remain too low ahead of the [September] producers meeting, there is a risk that at some point Russia and Saudi Arabia actually need to act. That would probably be the last thing they want as long as Iran is raising output.Away from the oil market, precious metals headed higher after disappointing US non-farm payroll (NFP) data saw the immediate risk of a US interest rate hike recede.At 1:06pm BST, Comex gold for December delivery rose 0.28% or $3.70 to $1,330.40 an ounce. FXTM research analyst Lukman Otunuga said gold benefitted as dollar bulls were left empty handed by Fridays NFP report.Soft US jobs data may have provided a strong reason for the Fed to remain on standby in September. For December to be a live meeting for the Fed to break the tradition of central bank caution, US data may have to repeatedly exceed expectations. Nonetheless, gold is zero yielding and the dollar connect makes it quite vulnerable to rate hike speculations.Finally, Comex silver futures were 0.85% or ¢16 higher at $19.53 an ounce, spot platinum was up 0.78% or $8.31 to $1,072.15 an ounce.last_img read more