Iran has warned global markets to prepare for oil at US$200 per barrel , escalating rhetoric as attacks intensify and shipping through the Strait of Hormuz remains effectively frozen. While oil prices have retreated from recent highs near US$120, Tehran’s message underscores the growing risk of a prolonged energy shock. Key Takeaways Iran warns oil could surge to US$200 per barrel Strait of Hormuz remains blocked, disrupting 20% of global oil flows 14 merchant ships reportedly struck since conflict began IEA expected to propose record 400 million-barrel reserve release Markets currently betting conflict may be contained Oil Market on Edge Iran’s military command said oil prices depend on regional security — warning the world to prepare for US$200 crude if instability persists. The Strait of Hormuz, a narrow chokepoint along Iran’s coast, normally handles: About 20% of global oil shipments A significant share of global LNG trade So far: At least 14 ships have reportedly been struck...
KUALA LUMPUR (Dec 2): The FBM KLCI closed up 8.81 points or 0.56% today on technical rebound and as prices of crude oil and global shares rose on news the Caixin/Markit Manufacturing Purchasing Managers' Index (PMI), which tracks China manufacturing activity, climbed to 51.8 in November 2019 from 51.7 in the previous month.
Reuters reported today that the PMI's November reading marks the fastest expansion in China manufacturing activity since December 2016.
At Bursa Malaysia today, the KLCI closed at its intraday high of 1,570.55 at 5pm. Analysts said the KLCI showed a technical rebound, after Friday's 22.03 point or 1.39% drop.
"Following last week's sharp correction, most technical indicators on the KLCI stayed oversold and signaled higher possibility for mild technical rebound upside this week. However, downside risks remain, with sustained foreign selling and renewed uncertainty over the ongoing trade dispute between Washington and Beijing, clouding the immediate term outlook," TA Securities Holdings Bhd wrote in a note today.
Across Bursa today, the exchange saw 2.04 billion shares, worth RM1.41 billion traded. Top gainers include Nestle (M) Bhd, Petronas Dagangan Bhd and Kuala Lumpur Kepong Bhd. Among Bursa indices, the energy gauge, which tracks oil and gas shares, closed up 12.27 points or 1.02% at 1,213.13.
Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com Malaysian stocks rebounded today, after declining last week on foreign selling.
“After this sell down, there is some rebound. Other factors include regional markets moving upwards as well,” he said.
Reuters reported global shares shuffled marginally higher on Monday to stand just short of the record peak struck in January 2018, with buyers encouraged by upbeat China manufacturing surveys and hopes China and the US will agree a preliminary trade deal.
In crude oil markets, it was reported that oil prices rose more than 1% on Monday, as signs of rising manufacturing activity in China pointed to increasing fuel demand, while hints OPEC may deepen output cuts at its meeting this week indicated supply may tighten next year.
"Brent crude futures rose 66 cents or 1.1% to US$61.15 a barrel by 0727 GMT. West Texas Intermediate (WTI) futures rose 75 cents or 1.4% to US$55.92 a barrel, having risen by more than US$1 earlier. On Friday (Nov 29), WTI futures settled 5.1% lower, while Brent plunged 4.4% on concerns that talks to end the trade war between the US and China, the world's two biggest oil users, would be disrupted by US support for protesters in Hong Kong," Reuters reported.
Source: The Edge
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