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Oil slides on COVID-19 resurgence, strong dollar By Reuters

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© Reuters. FILE PHOTO: Drilling rigs are parked up in the Cromarty Firth near Invergordon, Scotland

By Yuka Obayashi

TOKYO (Reuters) – Oil prices slid on Friday dragged down by concerns that a spike in COVID-19 cases in Europe and the United States is curtailing demand in two of the world’s biggest fuel consuming regions, while a stronger U.S. dollar also added to pressure.

Brent crude futures for December () dropped 44 cents, or 1.0%, to $42.72 a barrel by 0437 GMT, while U.S. West Texas Intermediate (WTI) crude futures for November delivery () slid 40 cents, or 1.0%, to $40.56 a barrel.

Both benchmarks fell slightly the previous day and are on track to remain little changed for the week.

“Worries over weakening fuel demand in Europe due to a resurgence in COVID-19 cases and a higher U.S. dollar against the euro weighed on investor sentiment,” said Kazuhiko Saito, chief analyst at Fujitomi Co.

In Europe, some countries were reviving curfews and lockdowns to fight a surge in new coronavirus cases, with Britain imposing tougher COVID-19 restrictions in London on Friday.

Pandemic cases have surged in the U.S. Midwest and beyond, with new infections and hospitalisations rising to record levels in an ominous sign of a nationwide resurgence as temperatures get colder.

The dollar was headed for its best week of the month on Friday, as surging coronavirus cases and stalled progress toward U.S. stimulus had nervous investors seeking safe assets. [FRX/]

A technical committee of the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers, a group know as OPEC+, also ended a meeting on Thursday expressing concerns about rising oil supply as social restrictions to curb the spread of COVID-19 limit fuel usage.

“All eyes are on OPEC+ move from January,” said Hiroyuki Kikukawa, general manager of research at Nissan (OTC:) Securities.

OPEC+ is set to reduce its current supply cuts of 7.7 million barrels per day (bpd) by 2 million bpd in January even as OPEC Secretary General Mohammed Barkindo admits fuel demand is looking “anaemic”.

The bearish demand outlook and rising supply from Libya may mean OPEC+ could roll over the existing cuts into next year, OPEC+ sources said on Thursday.

There is an OPEC+ meeting scheduled for Nov. 30 to Dec. 1 to set policy.

“With uncertainty over OPEC+ future policy and the U.S. presidential election, oil prices will likely remain in a tight range for a while,” Kikukawa said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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EU countries back binding green farming schemes By Reuters

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© Reuters. FILE PHOTO: A farmer irrigates his field of potatoes during sunset, in Tilloy-Lez-Cambrai

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By Kate Abnett

BRUSSELS (Reuters) – European Union agriculture ministers agreed on Wednesday to set aside part of the bloc’s massive farming policy budget for programmes that protect the environment.

The EU is nearing the end of a two-year struggle to overhaul its agriculture policy, to attempt to align it with the bloc’s climate change commitments, while supporting farmers’ livelihoods.

The agriculture policy as a whole will suck up roughly a third of the EU’s 1.1 trillion euro ($1.30 trillion) budget for 2021-202, to be split between direct payments to farmers and other support for rural development.

Ministers agreed that 20% of the payments to farmers will be earmarked for green schemes such as organic farming or agroforestry. Farmers will not be able to access the cash for other purposes.

The policy kicks in from 2023 and ministers agreed a two-year pilot phase for the green schemes, meaning they would become binding from 2025. Some countries had raised concerns that tying cash to environmental aims would mean the money was left unspent.

“We can’t simply leave it up to member states to decide whether or not eco-schemes are used and, if so, what money will be made available,” said German agriculture minister Julia Kloeckner, who chaired the meeting.

With agricultural sites comprising 40% of all EU land, farming has a large influence over the health of Europe’s natural habitats.

Agriculture is the most frequently reported threat to nature in Europe, amid intensive farming techniques including pesticides and irrigation, the EU environment agency said on Monday.

Campaigners said the 20% share for green schemes was too low.

“Agriculture ministers are largely perpetuating a farm policy which will throw taxpayers’ money at polluting, industrialised agriculture until at least 2027,” said WWF senior policy officer Jabier Ruiz.

The farming policy negotiations do not end with Wednesday’s deal. EU countries must now strike an agreement with the European Parliament and the European Commission on the rules. Parliament is voting on the policy throughout this week.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Gold Up Over Soft Dollar and Rising Stimulus Hopes By Investing.com

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© Reuters.

By Gina Lee

Investing.com – Gold was up on Wednesday morning in Asia, boosted by a weak dollar and the prospect of the U.S. Congress passing the latest stimulus measures ahead of the Nov. 3 presidential election.

were up 0.38% at $1922.75 by 12:26 PM ET (4:26 AM GMT). The was down on Wednesday morning.

The gap between the Republicans and Democrats seemed to decrease after President Donald Trump indicated on Tuesday that he was willing to accept a stimulus package with a larger price tag, saying, “I want to do it even bigger than the Democrats.”

House of Representatives Speaker Nancy Pelosi added to hopes that the stimulus measures would be passed by Congress, saying, “I hope so. That’s the plan,” for an agreement to be reached the following week. Pelosi will continue talks with Treasury Secretary Steven Mnuchin later in the day.

However, with Republicans still opposed to the measures’ price tag, it remains to be seen whether both parties will reach a consensus.

The Federal Reserve struck a positive note, with Chicago Federal Reserve Bank President Charles Evans saying that the current rise in U.S. COVID-19 cases may not dent the recovery too much, remaining “reasonably optimistic” that unemployment will fall to 5.5% by the end of 2021. Evans’ colleagues at the Fed called for more fiscal support to complement unprecedented monetary aid, and the central bank is due to release its ‘Beige Book’ economic survey later in the day.

Across the Atlantic, investors continue to monitor the progress of Brexit talks between the U.K. and the European Union (EU). Both sides called for the other to compromise to save the fast-deteriorating talks.

Swiss gold exports to China and India decreased in September, importing record volumes of bullion from Hong Kong instead and exporting the yellow metal to the U.K., according to customs data. Other data showed that holdings in SPDR Gold Trust (P:) fell 0.23% to 1,269.93 tons on Tuesday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Oil Falls After Report Points to Surprise Crude Stockpile Gain By Bloomberg

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© Reuters. Oil Falls After Report Points to Surprise Crude Stockpile Gain

(Bloomberg) — Oil dropped toward $41 a barrel in New York after an industry report pointed to a surprise increase in American crude stockpiles, countering optimism over a potential U.S. stimulus agreement.

The American Petroleum Institute reported crude inventories climbed by almost 600,000 barrels, according to people familiar with the data. That would be the second gain in three weeks if confirmed by government figures on Wednesday. Futures advanced on Tuesday as U.S. lawmakers moved closer to a package to bolster the economic recovery from the virus-driven downturn.

Oil’s recovery is facing pressure from a resurgent coronavirus and expanding supply from Libya, despite China offering some support to demand. OPEC+ has warned the market faces a precarious outlook, with key ally Russia saying that the group won’t be making any decision on the direction of its output cuts before a ministerial meeting scheduled for Nov. 30-Dec. 1.

“Oil fundamentals are weak and will come home to roost if the stimulus hopes are dashed again,” said Vandana Hari, the founder of consultancy Vanda (NASDAQ:) Insights. “Crude is being held hostage by the U.S. stimulus drama.”

Brent’s prompt timespread was 35 cents a barrel in contango on Wednesday, compared with 51 cents at the start of the month. The narrowing spread signals that concerns about over-supply have eased.

U.S. gasoline and distillate supplies declined last week, while crude inventories at the key storage hub of Cushing increased by 1.17 million barrels, the API reported on Tuesday. Nationwide crude stockpiles were forecast to drop by 1.38 million barrels, according to the median estimate in a Bloomberg survey.

©2020 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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