The oil complex has been driven by supply concerns amid prospects that most significant driver in oil price sentiment.

SINGAPORE: Oil prices edged lower on Monday as a rising rig count in the United States pointed to higher production, but prices held near more than three-year highs and were on track to rise for a second consecutive month.

The oil complex has been driven by supply concerns amid prospects of the United States reimposing sanctions on Iran, while OPEC-led producers continue to withhold supplies.

Brent crude futures, the international benchmark, dipped 34 cents, or 0.5 percent, to $74.30 a barrel in early trading. Prices climbed as high as $75.47 last week, levels not seen since November, 2014.

U.S. West Texas Intermediate (WTI) crude futures were at $67.98 a barrel, down 12 cents, or about 0.2 percent, from their last settlement.

"There's a small drop in trading this morning but volumes are low and there's not much commitment in the selling. The overall trend is positive and there's potential for the market to close higher again today," said Michael McCarthy, chief marketing strategist at CMC Markets.

"The underlying strength in crude markets is quite impressive and a lot of it is predicated by sanctions... Other than that it's the demand picture around the globe, and if that continues we could see higher prices."

U.S. drillers added five oil rigs in the week to April 27, bringing the total count to 825, the highest level since March 2015, General Electric's Baker Hughes energy services firm said.

"The increase in rigs is modestly bearish for oil prices because increasing rigs is usually associated with increasing supply," Bill O'Grady, chief market strategist at Confluence Investment Management said in an email.

"However, the increase in rigs was modest and this news is overshadowed by other things, including Angola's production decline, the potential for an end to the Iranian nuke deal, continued threats by Houthis to Saudi oil shipping and infrastructure."

U.S. crude production has soared more than 25 percent since mid-2016 to a record 10.59 million barrels per day (bpd). Only Russia currently produces more, at around 11 million bpd.

Brent prices have gained nearly 6 percent this month, buoyed by expectations the United States will renew sanctions.

U.S. President Donald Trump has until May 12 to decide whether to restore sanctions on Iran that were lifted after an agreement over its disputed nuclear programme.

"Precisely what happens with Tehran's nuclear program remains the most significant driver in oil price sentiment," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA.

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Market Update: Singapore stocks log best week in nine months, Malaysian shares rise

Singapore shares posted their best weekly advance since January, helped by a rally in property developers and lenders, while Malaysian equities also rose over the last five days to snap a two-week losing run.

Singapore's FTSE Straits Times index rose 0.9% to 3,291.29 on Friday, taking its rally this week to 2.2%. UOL Group added 5.3% since last Friday, pacing gains for real estate developers. DBS Group Holdings led banking stocks higher, climbing 3.2% this week. On Friday, UOL Group was up 4.3% and DBS by 0.8%.

Property Singapore stocks in the city-state gained this week after City Developments bought a residential site worth more than S$900 million ($660 million), reigniting optimism for Singapore's real estate market, according to at least two brokerages. Shares of City Developments rose 2.3% this week.

Lenders climbed for a third consecutive week, tracking a rise in U.S. bond yields amid optimism over tax reforms in the world's largest economy. Singapore rates are heavily influenced by the U.S. and a rising interest rate scenario helps the net interest rate margin outlook for banks. The benchmark 10-year U.S. bond yield is trading near a four-month high.

Gains in Singapore stocks this week were also helped by a record run on Wall Street that saw all three major U.S. equity benchmarks repeatedly scale record highs.

The FTSE Bursa Malaysia KLCI ended up 0.3% to 1,764 on Friday, rising 0.5% this week. AMMB Holdings and RHB Bank were the week's top performers, adding at least 2.4% each, rebounding from last week's losses. On Friday, AMMB rose 0.2% and RHB ended little changed.

The market is expected to trade sideways in the coming week as investors await fresh catalysts which include Malaysia's upcoming 2018 fiscal budget, said Pong Teng Siew, head of research at Inter-Pacific Securities in Kuala Lumpur. "It looks like it's going to be a very quiet week ahead," with funds seen holding back positioning ahead of the budget announcement expected in the final week of this month, said Pong. His forecast model indicates a "very narrow" 14-point upside and downside for the KLCI for the whole week.

Foreign outflows from Malaysia's stock market dwindled to 29 million ringgit ($6.8 million) this week through Thursday, after last week's outflow of nearly 1 billion ringgit.

Construction and property developer WCT Holdings advanced 2.3% on Friday after is subsidiary won a contract for completion of Light Rail Transit Line 3 (LRT3) and other associated works for 640 million ringgit.

Gabungan AQRS climbed 6.4% after securing LRT3 contract worth 1.21 billion ringgit.

 

Source - nikkei.com

Asia stocks gain as Brexit fears ebb slightly, safe-havens retreat

secure-haven property and currencies like gold, authorities bonds and the yen retreated.
MSCI's broadest index of Asia-Pacific stocks out of doors Japan (MIAPJ0000PUS) rose 1 percentage.
Australian stocks (AXJO) delivered 1.2 percentage and South Korea's Kospi (KS11) rose 1.1 percent.
Japan's Nikkei (N225) climbed extra than 2 percent, helped by a retreat in the lately bullish yen.
"individuals who have been threat averse are reversing their positions," said Yoshinori Shigemi, worldwide marketplace strategist at JPMorgan (NYSE:JPM) Asset control in Tokyo.
"Sentiment changed into extraordinarily bad closing week, but it's getting better now, though we should not be overly positive."
3 British opinion polls beforehand of the european club referendum on June 23 confirmed the "continue to be" camp recovering a few momentum, although the general picture remained certainly one of an calmly split citizens.
global markets, buffeted this month by Brexit woes, had a breather at stop of ultimate week from a 3-day suspension in British campaigning following the fatal assault on lawmaker Jo Cox, a sturdy supporter of britain staying in the ecu.
"it is tough to assume the market's calmer tone to end final week is going to be an ongoing theme this week, mainly as Brexit campaigning and the release of opinion polls has resumed once more," wrote strategists at ANZ.
"To be fair, the unhappy homicide of uk politician Jo Cox may additionally see the rhetoric from both camps get toned down particularly. however markets will nonetheless, no question, swing approximately with movements in opinion polls, just as they did final week."
The pound in the meantime climbed 1.6 percent to $1.4589 , extending a restoration from last week's two-month trough of $1.4013. It jumped 1.9 percentage to 152.42 yen (GBPJPY=R), pulling properly far from a three-12 months trough of one hundred forty five.34 set on Thursday. [FRX/]
The euro rose 0.7 percent to $1.1360 .
The secure-haven yen, which had soared to a 22-month high of 103.555 in keeping with greenback final week on Brexit woes, pulled again. The greenback became up zero.five percent at 104.630 yen .
The Australian dollar, visible as a difficult measure of risk sentiment, changed into up 0.6 percentage at $0.7442 to place similarly distance among a two-week trough of $0.7286 touched late closing week.
The greenback index (DXY) touched an eleven-day low of 93.563 because the dollar gave again floor against most of its most important peers, apart from the yen.
Dovish comments from St. Louis Fed President James Bullard on Friday also weighed at the U.S. foreign money.
In commodities, crude oil costs extended profits as easing Brexit worries and a weaker dollar helped the commodity after six immediately days of declines. [O/R]
U.S. crude (CLc1) won zero.nine percent to $forty eight.forty two a barrel and Brent crude (LCOc1) became up zero.7 percent at $49.fifty two in step with barrel.
Gold fell because the modern day ebb in threat aversion dented investor demand for secure-haven property. Spot gold changed into down 1.2 percentage at $1,282.seventy three an oz., hiking down from a near two-yr high of $1,315.fifty five scaled closing week.
The U.S. Treasury 10-year note yield (US10YT=RR) rose to as excessive as 1.6610 percentage, pulling returned sharply from a four-12 months low of one.5180 plumbed on Thursday. the 10-12 months jap government bond yield also hovered considerably above a record low touched ultimate week.

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