Morning Briefing: Oil nears $50 on stock draw reports, Fed speaker backs Dec rise

Morning Briefing: Oil nears $50 on stock draw reports, Fed speaker backs Dec rise

Morning Briefing: Oil nears $50 on stock draw reports, Fed speaker backs Dec rise Oil nears $50 on stock draw reports, Fed speaker backs Dec rise
Oil prices fell sharply in the previous session but rebounded overnight into Wednesday on reports of a larger US stockpile draw.

The American Petroleum Institute says that there was a 7.6 million-barrel decline in US stocks in the past week. The price of West Texas Intermediate is nearing $50 despite a stronger US dollar.

Meanwhile, markets are focusing on the words of Chicago Fed president Charles Evans who backs a December rate hike if data remains strong. Speaking at an event in New Zealand, Evans said "I am less concerned about the timing of the next increase than I am about the path over the next three years.”

Asian indexes closed mixed with Tokyo and Hong Kong higher while Sydney and Seoul declined. Shanghai is still closed for public holidays.

In Europe, markets are lower as the Evans speech is weighed along with a report suggesting that the ECB might wind-in its bond-buying program. With data released Wednesday showing weaker manufacturing and services PMI for Italy and France and only a slight rise for Germany, investors are concerned about any reduction in stimulus from the central bank.

Wall Street and Toronto are expected to open higher. US non-manufacturing data is due later.
 
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North America (previous session)
US Dow Jones 18,168.45 (-0.47 per cent) -1.75 per cent +8.30 per cent
TSX Composite 14,521.00 (-1.14 per cent) -1.86 per cent +7.15 per cent
 
Europe (at 4.30am ET)
UK FTSE 7,051.28 (-0.33 per cent) +2.50 per cent +11.94 per cent
German DAX 10,539.23 (-0.70 per cent) -1.19 per cent +7.44 per cent
 
Asia (at close)
China CSI 300 3,253.28 (+0.27 per cent) -1.84 per cent +1.57 per cent
Japan Nikkei 16,819.24 (+0.50 per cent) -1.28 per cent -6.59 per cent
 
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
51.58
(+1.40 per cent)
49.38
(+1.42 per cent)
1274.10
(+0.35 per cent)
U$0.7577
 
Aus. Dollar
U$0.7615

 
Alaska oil discovery
A Dallas-based oil exploration firm has discovered 6 billion barrels under Arctic waters in Alaska.

Caelus says that there are potentially 2.4 billion recoverable barrels in its Smith’s Bay project. The additional reserves almost match the 2.86 billion barrels of proved reserves in 2014.

In a statement, Caelus CEO Jim Musselman said it was an exciting discovery for the state: “It has the size and scale to play a meaningful role in sustaining the Alaskan oil business over the next three or four decades.”