The oil trend is still fluctuating. According to Claudio Descalzi, Eni CEO, although the cost per barrel suffers decided fluctuations, the price remains in continuous ascent: "It grow up by 33-34 dollars per barrel and reached 50 and this is combined with the fact that the offer, then the production, was down compared with the demand. "
Saudi Arabia has raised more than $17 billion in its first foray into the global bond markets, according to news reports, as the kingdom struggles to close a budget deficit caused by declining oil prices.
The issue eclipsed the previous record for an emerging market sovereign bond sale, a $16.5 billion issue by Argentina in April, Reuters reported. The bonds are due to be repaid in 5, 10 and 30 years and are expected to trade at a 160-235 basis point premium to US Treasuries. The notes are expected to be rated A1 by Moody’s and AA- by Fitch.
Saudi Arabia is set lo launch its first international bond on Wedsneday, as the Financial Times reported; the initial price guidance of the bond is set to be somewhere between $10 billion and $15 billion, the largest ever from West Asia. The final figure will be released on Tuesday.
It comes at a time where Saudi Arabia is looking to plug the budgetary deficit it has had since the drop in oil prices last year.
In September, the main focus was once again the central banks, the ECB first of all, then the Bank of Japan and the Fed. Expectations were high in all three cases. To announce additional monetary easing in the first two, and guidance on anticipations and credibility in the third. The first two disappointed the market, announcing measures that fell well short of investor anticipations. Already in July, the BoJ opted to keep things as they stood even though a large proportion of investors expected to see further monetary easing. The Fed, for its part, struggled to overcome internal divisions and look beyond a month-by-month horizon, at the risk of making mistakes in its growth projections and damaging its credibility.
Crude-oil futures on Monday posted their best close in more than a year as bullish comments from Russian President Vladimir Putin and Saudi Arabia’s energy minister set off a surge in prices amid a meeting of major oil producers in Istanbul to try to cement a cap on oil production.
Oil prices fell on Monday over doubts that an OPEC-led plan to cut output would rein in a global oversupply that has dogged markets for over two years. They are nearly double their lowest level this year in January, with benchmark North Sea Brent futures ending last week at about US$52 per barrel.
West Texas Intermediate (WTI) for November delivery rose 1.22% to $50.44 a barrel.
Brent crude oil prices remained above $50 a barrel today, supported by last OPEC agreement but under pressure due to controversial views about deal.
Brent crude futures were trading at $50.25 per barrel, up 6 cents from the last close while WTI crude were down 8 cents at $48.16 a barrel on October 3.
The Organisation of the Petroleum Exporting Countries (OPEC) said last week that it would cut output to between 32.5 million barrels per day (bpd) and 33 million bpd from about 33.5 million bpd.
Russia has no plan to change its current level of oil output, said Russian Energy Minister Alexander Novak, albeit he applauds OPEC oil cartel’s agreement to curb production.
"Russia will carefully consider those proposals which will be eventually drawn up. … But our position is keeping the volume of production at the level that has been reached. These are the main principles that were earlier being considered,” said Novak. The comments came after OPEC reached a preliminary deal Wednesday on the sidelines of the International Energy Forum to cut current production to 32.5 – 33.0 million barrel per day (bpd), for the first time since 2008.
