December 3, 2017
Oil Slips From Two-Year High as Doubts Over OPEC Meeting Linger
A rising U.S. rig count and continuing uncertainty over OPEC’s strategy to extend supply cuts pushed oil prices lower following a week in which they hit their highest close in more than two years.
Futures slid as much as 2.4 percent in New York after rising 1.6 percent Friday to the most since June 2015. OPEC and Russia, partners in the oil-cuts deal, have crafted the outline of an agreement to extend curbs to the end of next year, according to people involved in the discussions. But doubts remain over the size of the reductions after the current accord expires in March, as well as which exit strategy the group will adopt. Meanwhile, drillers targeting crude in the U.S. added nine rigs last week.
"What we’re seeing is cold feet heading into the OPEC meeting," said Ashley Petersen, lead oil market analyst at Stratas Advisors in New York. "After exuberance over three weeks now, investors are getting nervous. That’s going to be the dominant driver regardless of the weekly fundamental data."
Oil has advanced about 23 percent since the start of September on speculation the Organization of Petroleum Exporting Countries and its allies will prolong output reductions to drain a global glut. OPEC and Russia are still hammering out crucial details for an extension, the people involved in the conversations said last week. Russia wants the deal to include new language that would link the size of the curbs to the health of the oil market, they said.
Click for a TOPLive Q&A with oil strategist Julian Lee at 9 a.m. New York time.
"The consensus is building that Russia may not want to have a situation where they’re ready to restrict supply without any qualifications," Bart Melek, the global head of commodity strategy at TD Securities in Toronto, said by phone. "They don’t want to move prices too high to incentivize unconventional producers to produce."
West Texas Intermediate for January delivery settled at $58.11 a barrel on the New York Mercantile Exchange, after falling to an intraday low of $57.55. News that Cushing, Okla., crude inventories fell by 2 million barrels last week helped spur the mid-day rebound.
"That’s almost the primary reason that we’re so close to $60 in WTI," Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by telephone.
Still, trepidation about Thursday’s gathering in Vienna will continue to keep crude lower, Lynch said. "There’s fear that stronger prices will lead to changes in production quotas."
Read our OPEC Reality Check to see what’s at stake for each producer
Brent for January delivery settled at $63.84 a barrel on the London-based ICE Futures Europe exchange, after rising 1.8 percent last week. The global benchmark crude traded at a premium of $5.73 to WTI.
Oil-market news:
- Transcanada plans to resume service on its Keystone crude pipeline Nov. 28 at reduced rates, after shutting line Nov. 16 because of a leak in South Dakota.
- Crude inventories in Cushing, Okla., fell 2 million barrels in the week ended Nov. 24, according to a forecast compiled by Bloomberg.
- Iraq’s hitting a couple of speed bumps as it gears up for 2018 oil sales, after making unprecedented moves to sell one-time cargoes this year in addition to supplies under long-term contracts.
- OECD fuel inventories were 140 million barrels above the five-year average in October, down from record of more than 380 million, according to the text of a speech on Monday by OPEC Secretary General Mohammad Barkindo.
February 26, 2018
Days After Parkland, Its Business as Usual at a Florida Gun Show 0
by MeDaryl • Cars • Tags: business, businessweek, Congress, culture, Donald John Trump, Florida, Gun Control, guns, Las Vegas, Miami, National Rifle Association, texas
It’s another week after another mass shooting in the U.S., and something finally feels different. In the days following the Feb. 14 school shooting in Parkland, Florida, that killed 17 students and faculty members, a vociferous movement of young people has risen up to say enough is enough. The generation that grew up in the wake of the 1999 carnage in Columbine is demanding new gun restrictions. The teenagers are adding a fresh voice to a gun control debate that has plodded, despite a number of high-profile massacres in the past several months, from the record-setting Las Vegas incident that killed 58 to the shooting a few weeks later at a Baptist church in Sutherland Springs, Texas, that killed 26.
But as students plan protests and schedule a sit-down with President Donald Trump to discuss gun violence, it’s important to remember what they’re up against. Three-in-10 American adults own a gun, and three-quarters of them think that doing so is fundamental to their sense of freedom, according to a 2017 Pew poll. This engrained culture of gun rights was on display over the weekend, where it was business as usual at a Miami-area gun show. Merchants displayed hunting knives, tactical gear, and semiautomatic assault rifles, including the same AR-15 model used by 19-year-old Nikolas Cruz, just an hour north, at Marjory Stoneman Douglas High School, in neighboring Broward County. At the Miami weapons bazaar, parents pushed babies up and down aisles of carefully stacked magazines and ammo; older children played with toy firearms.
Gun shows are a staple in the American firearms community, with several thousand held annually. Gun control activists have called for closing the “gun show loophole,” which allows some gun sellers to perform a transaction without running a background check on the buyer. According to data collected by Pew, the majority of gun owners, 77 percent, advocate ending the loophole, but a proposed bill to do just that found little traction in Congress when it was introduced last March.
Indeed, the state of gun control legislation appears to be divorced from public sentiment. According to the Pew poll, among gun owners, 89 percent support a proposal that would prevent the mentally ill from purchasing a gun, 82 percent support barring those on the no-fly list from buying guns, 54 percent support a federal gun sales database, and 48 percent support a ban on assault-style weapons such as AR-15s. These measures, though, often dissipate in the legislation process. Congress, which promised a bipartisan bump stock ban after the device was used in the Las Vegas shooting, failed to deliver. On Tuesday, Trump signaled a willingness to consider a bump stock ban, directing his attorney general, Jeff Sessions, to draft rules prohibiting the accessories.
In a sign of how hard it will be to change the state’s gun laws, on Feb. 20, Florida legislators voted against an assault rifles ban as students from Parkland watched in the gallery. A similar proposal failed to gain traction in the wake of the 2016 Pulse nightclub shooting that left 49 dead. The state is home to some of the nation’s most lax gun laws and a governor with an A+ rating from the National Rifle Association. Marion Hammer, head of the Florida gun lobby, was involved in the state’s notorious Stand Your Ground law and supported the state’s concealed carry initiative. In a state where concealed carry is popular, the license allows those shopping at a gun show to avoid the three- to five-day waiting period.
At the weekend gun show in Miami, few people wanted to talk on the record, stating they’d been misrepresented in the past in the media. Many simply sighed when asked about the AR-15 first made infamous in the Sandy Hook shooting in 2012. The price tag on one read $449. Asked what it would take to buy one on the spot, a salesman replied, “If you have a Florida driver’s license and a concealed weapons permit, you can walk out with one today.” Short of that, you need to go through a background check and the mandatory waiting period.
Many of the talking points seemed similar. Multiple sellers mentioned that a 19-year-old who wanted to inflict mass casualties could just as easily buy a Ferrari and mow people down by speeding on a busy street. A common refrain was that gun owners are good people in favor of smart regulation but that an outright ban would never work, as there were already millions of guns in public hands.
Robert Geisler, a 34-year-old from Orlando, was working behind the busy, large booth for gun retailer Shoot Straight Florida. Business sometimes picks up after a mass shooting, he said, though this show is always busy. “We’re on pace to do the exact same amount of sales as we did about a month ago when we were here,” he said. The conversation soon turned to the AR-15 and all the misconceptions that Geisler said surround the weapon. “There’s a lot of guns that are like that, that have been out for a long time that shoot just as far and shoot just as fast. It’s gotten a bad name since that Sandy Hook thing,” Geisler said, referring to the 2012 killing of 20 elementary school students and six staff members. “The gun has been around since the Vietnam era, it’s just in the last 25 or 30 years where these kids have been using them in the school shootings.”
“We are a free society,” Robert’s uncle, Scott Geisler, 56, said as he walked over and talked at length about all the reasons why someone might want to purchase an AR-15 for self-defense instead of a simple handgun. “People want some choices,” he said. “They like that look. They grew up with it. They see it, they see it on TV, and they like to own it. It’s a sexy rifle.”
The conversation shifted to a changing society and video games. “Society has changed,” the elder Geisler continued. “The kids have changed. We didn’t grow up playing with all these Game Boys or these PlayStations with shoot’em-up programs and going to schools and shooting up schools, shooting up whatever. We didn’t grow up with that. Now these kids think it’s fun and it’s a toy, and it’s not.” As Geisler spoke, a child played with a toy gun nearby as his mother looked at handguns.
Meanwhile, in the hours after Trump announced the possibility of a ban on bump stocks, prices for the accessories went wild on the resale market. On Gun Broker, a firearms auction website, Slide Fire-branded bump stocks were selling for between $245 and $1,200. The devices usually retail for between $99 and $199.
Read more: https://www.bloomberg.com/news/articles/2018-02-21/days-after-parkland-it-s-business-as-usual-at-a-florida-gun-show