Oil climbs high in Monday

Oil price today rose to $49.31 by the end of Monday and capped the biggest three-day gain in 25 years after OPEC said it’s ready to talk to other global producers to achieve ‘fair prices’ and the U.S. government reduced its crude output estimates.

Crude traded in New York surged 27 percent in three days, the most since August 1990 when Iraq invaded Kuwait. The contract has climbed more than 20 percent from its closing low on Aug. 24, meeting the common definition of a bull market. The Organization of Petroleum Exporting Countries, responsible for about 40 percent of the world’s supply, said in a monthly publication it’s willing to talk, “but this has to be on a level playing field.”

Prices erased last week’s drop to a six-year low as the OPEC comments and signs that the U.S. shale boom is fading faster provided optimism that a global supply glut will evaporate sooner than estimated. A measure of oil-price fluctuations rose to a five-month high as traders sought protection from market swings.

“The market turned around on two pieces of news,” Phil Flynn, senior market analyst for Price Futures Group Inc. in Chicago, said by phone. “The EIA cut its U.S. output estimates and OPEC says its ready to talk to others about cutting output.”

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Friday, New Low Price For Oil in 2015

The Oil price dropped today and record a new lowest at $39.89 for first time since 2009 in New York.

Prices have tumbled almost 35 percent since this year’s peak in June as producers maintain output even after an oversupply pushed prices into a bear market. WTI could drop to $32 on the persisting global surplus, Citigroup Inc. said in a report Aug. 19. Concerns that China’s economic growth will reduce demand also weighed on futures.

“It’s clear that the major producers, the Saudis, Russians, the U.S. and others, are battling for market share,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by phone.

West Texas Intermediate for October delivery dropped $1.20, or 2.9 percent, to $39.94 a barrel at 1:03 p.m. on the New York Mercantile Exchange.

The U.S. Energy Information Administration said crude supplies rose 2.62 million barrels last week. The unexpected U.S. inventory gain followed signs that OPEC members are planning to boost production. A Chinese manufacturing gauge sank to the lowest level since the financial crisis, increasing concern that demand will wane in the world’s second-largest oil consumer.

Brent for October settlement fell 3 percent to $45.21 a barrel on the London-based ICE Futures Europe exchange.

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Dubai closing a priceless deal with Apple

Apple Inc. will have the one million deal with United Arab Emirates this year by owning an exemption from foreign ownership laws in the United Arab Emirates that will allow it 100 percent control of operations in the country, according to two people with knowledge of the matter.

The dispensation was a condition for the world’s largest listed company to set up in the U.A.E., the people said, asking not to be identified as the plans are private. Apple will open its first Middle East store in Dubai this year and then Abu Dhabi after securing the privileges, according to the people.

Under local regulations, all businesses operating in the U.A.E. must be 51 percent owned by Emiratis or a company wholly owned by them unless they are based in free-zones. The government is working on a new foreign investment law that would allow 100 percent foreign ownership in some industries, Minister of Economy Sultan Al Mansoori said in March.

“Apple was licensed in the U.A.E. through the Ministry of Economy according to the requirements of, and in compliance with the Commercial Companies Law, as well as the ministerial resolution on foreign company branches,” Ahmad Al-Hosani, director of trade registration at the Ministry of Economy, said in an e-mailed statement.

The U.A.E. is an attractive market for Apple, whose iPhone business makes up 63 percent of its revenue in the most recent quarter. There are about 17 million active mobile subscriptions in the U.A.E. and 61 percent of them are smartphones, according to the Telecommunications Regulatory Authority. The iPhone 5s was the most popular handset in the country in the fourth quarter of 2014, the latest figures from the regulator show.

US Dollar up again

Due to new positive economic data from the United States, The US Dollar found a good support this week and moved higher against a basket of major currencies on Tuesday, after data showing that U.S. housing starts rose to an almost eight-year high in July.

The Commerce Department reported that housing starts rose 0.2% to an annual pace of 1.21 million units, the highest level since October 2007.

It was the fourth straight month that housing starts remained above a one million-unit rate.

Building permits fell 16.3% in July, but that was after three consecutive months of strong gains.

The encouraging data came as investors were looking ahead to Wednesday’s minutes of the Federal Reserve’s July meeting, which it was hoped would provide more clarity on its plans to hike short-term interest rates for the first time since 2006.

The US dollar index, which tracks the greenback against a basket of six major rivals, rose to 97.02 from around 96.82 ahead of the data.

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China lift the yellow metal

Gold price rose up to day in spite of a stronger dollar, as the People’s Bank of China resumed its efforts to stabilize its currency nearly a week after it fell to its lowest level in more than three years.

On the Comex division of the New York Mercantile Exchange, gold for December delivery traded between $1,113.10 and $1,122.20 a troy ounce, before settling at $1,118.80, up 6.10 or 0.55%. Last week, gold futures rose by more than 1.5% after dropping below $1,090.00 an ounce – posting one of its strongest weeks of the Summer period. The precious metal is still down by more than 2.4% over the last month as the aftershocks from a 10-day skid in mid-July, its longest losing streak in nearly two decades, continue to be felt. Since peaking above $1,200 an ounce in the middle of June, gold futures have fallen in value by more than 5%.

Gold likely gained support at $1,093, the low from August 11 and was met with resistance at $1,133.80, the high from July 20.

In Beijing, the People’s Bank of China (PBOC) maintained its push to stabilize the yuan, days after its currency suffered its most tumultuous week in years. During Monday morning’s daily fix, the PBOC moved its currency only 0.1% from its midpoint against the dollar, as USD/CNY rose modestly 0.06% to 6.3949. By comparison, the Chinese central bank moved the yuan nearly 2% below the midpoint of the currency pair on two consecutive days last week, as the remnibi fell to its lowest level in four years.

Previously, the PBOC set the midpoint, or central parity rate of its currency, after receiving a range of dollar-yuan prices from a host of Chinese state-owned banks. In turn, the central bank responded by adjusting the value of the yuan anywhere between 2% above or below the midpoint. Last week, however, the PBOC shifted its policy by declaring that the midpoint would instead be based off the value of the previous session’s close.

China is the world’s largest producer and second-largest consumer of gold behind India.

Over the weekend, the International Monetary Fund hinted that the seismic yuan reforms may bring China closer to a floating rate system, shifting away from its current managed float regime. In a staff report on key macroeconomic issues affecting Chinese economic growth, the IMF suggested that significant exchange rate flexibility could help the world’s second-largest economy integrate more effectively into the global financial markets.

“We believe that China can, and should, aim for an effectively floating exchange rate regime within 2–3 years,” wrote Markus Rodlauer, IMF mission chief for China, in the report. “In this regard, the IMF noted that the new mechanism for determining the central parity of the Renminbi announced by the central bank is a welcome step as it should allow market forces to have a greater role in determining the exchange rate.”

Metal traders also await the release of the Federal Open Market Committee’s minutes from its July meeting for further indications from the Federal Reserve later this week on the timing of a potential interest rate hike. While the Fed is expected to raise its benchmark for short-term interest rates before the end of the year, it has not indicated if it will do so during its September or December meeting.

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Black August for the Oil

The crude oil price fell to the lowest price possible from 6 years ago and from the beginning of August and the price moving up and down tightly with less than 4 dollars per barrel change.

On the New York Mercantile Exchange, WTI crude for September delivery traded between $41.46 and $42.92 a barrel before settling at $42.33, up 0.10 or 0.22% on the session. For the week, Texas Long Sweet futures fell approximately 2% amid a rough, volatile stretch of trading over the past five days. On three of the five sessions on the week, WTI crude moved in an up or down direction by at least 2.45%. Over the last month of trading, U.S. crude futures are still down by roughly 22%, suffering one of its worst periods in a decade.

On the Intercontinental Exchange (ICE), brent crude for September delivery wavered between $48.76 and $49.84 a barrel before closing at $48.91, down 0.73 or 1.47%. The spread between the international and the U.S. benchmarks of crude narrowed to 6.58, down from Thursday’s level of 7.36 at the close.

Oil services firm Baker Hughes (NYSE:BHI) said in its Weekly Rig Count on Friday that U.S. oil rigs increased by two to 672 last week for the week ending on August 7, marking the fourth straight week of weekly builds. Oil rigs have gradually moved higher after experiencing builds in six of the last seven weeks, following more than 25 weeks of weekly draws. Last fall, the U.S. oil rig count peaked above 1,600.

Earlier this week, the U.S. Energy Information Administration said U.S. crude inventories for the week fell by 1.7 million barrels, in line with expectations for a 1.6 million decline. The moderate draw extends sharp declines from a week earlier when U.S. crude stockpiles plunged by 4.4 million barrels in the final week of July. At 453.6 million, crude inventories nationwide remain near its highest level at this time of year in at least 80 years.

Investors have been more focused on steady production declines, as U.S. crude output fell below 9.4 million barrels per day last week to its lowest level since early-May. At the same time, OPEC announced that its output increased by 100,000 bpd in July to 31.5 million bpd even as Saudi Arabia experienced a mild dip in production. A surge in Iranian output helped push OPEC production to its highest level in three years.

As crude prices threaten to drop into the low to mid $30s, some of the smaller members of OPEC have called on the world’s largest cartel to step in to stabilize prices. On Tuesday, Venezuela president Nicolas Maduro said the nation has advised OPEC leaders to call an emergency meeting to discuss a strategy for combating the rapidly falling prices. Oil sales comprise roughly 45% of the Venezuelan Federal budget and 12% of its GDP.

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Samsung ready to compete with Apple

Samsung Electronics Co. could not attract the interest of the technology lovers lately by the Edge nor the Note 5 while Apple planning to post Apple 6 in the market, Samsung have a plan to stand for that.

Samsung will get the jump on Apple before the expected September release of successors to the iPhone 6 and iPhone 6 Plus, which have won over premium users. The 5.7-inch (14.5-centimeter) screens and addition of payments are meant to help Samsung stand out from the array of inexpensive devices by Chinese vendors using the same Android software.

“Samsung used to unveil its Note series in September,” said Greg Roh, an analyst at HMC Investment Securities Co. in Seoul who rates the stock a buy. “The latest unveiling comes about a month earlier, showing it can no longer tolerate losing the oversized phone market to Apple.”

A botched strategy saw Samsung misread demand for the S6 models released in April, failing to produce enough three-sided screens for the Edge while the regular version struggled against the bigger iPhones.

Losing Billions

Samsung’s global smartphone market share fell more than 3 percentage points in the second quarter amid a surge in sales for iPhones and devices from Huawei Technologies Co., Lenovo Group Ltd. and Xiaomi Corp. Samsung had 21.7 percent of the market and Apple 14.1 percent, according to researcher International Data Corp.

Samsung has lost more than $43 billion in market value from the year’s peak in March after posting its fifth straight quarterly profit decline.

“It’s a mature market,” Jean-Daniel Ayme, deputy president of Samsung Mobile in Europe, said in an interview in London. “But we’re very confident when we look at the behavior of consumers around the world that there is still a lot of demand for innovation and new technology.”

The digital wallet is seen as helping Samsung compete against Google Inc. and EBay Inc.’s PayPal for a slice of the U.S. mobile-payments market, which Forrester Research estimates could be worth $142 billion by 2019.

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