Oil prices are falling slightly on Wednesday after a strong rise in the previous session.
The market rise on Tuesday was promoted by the forecasts of a cold snap in the USA and also by the weakening of the dollar after the publication of the statistical data, which showed a slowdown in inflation in the states in November.
In addition, the market continues to be supported by the situation with the Keystone pipeline, which was closed last week, and expectations of increased demand in China as a result of the easing of quarantine restrictions, Market Watch said.
The cost of February futures for Brent crude oil on London’s ICE Futures Exchange was $80.51 a barrel by 7:10 a.m. KSC on Wednesday, down $0.17 (0.21%) from the previous session’s closing price. Those contracts rose $2.69 (3.5%) to $80.68 a barrel at the close of trading on Monday.
The price of WTI futures for January oil fell by $0.11 (0.15%) to $75.28 per barrel at electronic trades of New York Mercantile Exchange (NYMEX) by that time. By the close of previous trading the cost of these contracts increased by $2.22 (3%) to $75.39 a barrel.
Canada’s TC Energy, the operator of Keystone, plans to partially open the pipeline Wednesday and fully return it to service Dec. 20, Bloomberg reported, citing sources.
The focus for traders Wednesday is last week’s U.S. energy inventory data, to be released by the Energy Department at 5:30 p.m. CSC.
American Petroleum Institute (API) data released the day before showed a 7.819 million barrel increase in U.S. oil inventories for the week ended Dec. 9.
Insurance company “Busin” (Kyiv) in January-September 2022 collected UAH 151.9 million of gross premiums, which is 71.57% less than a year earlier, the rating agency “Standard-Rating” reported in the information on updating the credit rating / financial strength rating of the insurer at the level of “uaAA+” on the national scale based on the analysis of its reporting for the specified period.
It is noted that the proceeds from individuals for this period decreased by 48.05% – to UAH 1.175 million, from reinsurers more than doubled – to UAH 23.714 million.
Insurance payments sent to reinsurers for the first nine months of 2022 compared to the same period of 2021 decreased by 77.76% – to UAH 105.182 million. As a result, the reinsurers’ participation ratio in insurance premiums decreased to 69.26%.
Net premiums decreased by 23.70% – to UAH 46.682 million, earned premiums – by 30.91%, to UAH 52.596 million.
For three quarters of 2022, the company paid UAH 649 thousand of insurance indemnities, which is 76.59% less than in the same period of 2021. Thus, the level of payments decreased by 0.09 p.p. to 0.43%.
The financial result from operating activities of the IC amounted to UAH 11.269 million, net profit increased almost sixfold to UAH 41.863 million.
The company’s assets as of September 30, 2022 decreased by 34.66% to UAH 421.839 million, equity increased by 19.78% to UAH 180.522 million, liabilities decreased by 51.23% to UAH 241.317 million, cash and cash equivalents increased by 13.50% to UAH 197.89 million.
IC “Busin” was registered in February 1993. It specializes in risky types of insurance. It is a member of a number of professional and industry associations – League of Insurance Organizations of Ukraine, National Club of Insurance Payments, International Association of Aviation Insurers (UA), Nuclear Insurance Pool, American Chamber in Ukraine, British Business Club.
The National Bank of Ukraine has cancelled licenses for four financial companies and one credit union, and excluded two credit unions from the State Register of Financial Institutions, according to the regulator’s website.
According to the NBU, the decisions of December 12, all licenses of Holastis Financial Company LLC, Maximum Financial Company LLC and Credit Finance Ukraine Financial Company LLC have been annulled.
As reported, on October 19, 2022 the mentioned institutions have been applied sanctions in the form of temporary suspension of licenses to provide financial services due to non-provision of information and documents about the ownership structure requested by the National Bank of Ukraine. As of the moment of taking decision on cancellation of licenses the violations have not been eliminated.
Besides, LLC “FC “Plaza Inves” has its license for provision of financial leasing services revoked due to failure to provide any financial service under this license during 12 months since the day of its issuance.
CC “Ukrainian Oshchad Center” is also excluded from the State Register of financial institutions due to the cancellation of all previous licenses and CC “Elliada” on the basis of its own application, guided by the special procedure during martial law.
The Verkhovna Rada has passed a new draft law “On the media.”
A total of 299 people’s deputies voted for the relevant draft law No. 2693-d at the plenary session of parliament in Kiev on Tuesday, parliamentarian Yaroslav Zheleznyak (Golos faction) said on his Telegram Channel.
The bill defines the legal framework for the activities of entities in the media sector in Ukraine, as well as the basis of state administration, regulation and supervision (control) in this area.
In particular, the legislative field introduces the concept of “online media”. Voluntary registration, which guarantees legislative protection, is envisaged for them.
According to the Draft Law, if a registered subject in the sphere of online media commits a gross violation, the regulator applies a fine to it. In case of a second or third gross violation within one month after the application of the fine, the decision on which has not been cancelled in accordance with the procedure established by law, a fine of double the amount is imposed.
There is a ban on the distribution of registered online media by court order – this measure applies in the case of a fourth gross violation within one month, if for the previous similar violations fines were applied, the decisions on which have not been canceled in the prescribed manner by law.
The bill also provides for a temporary ban on the distribution of unregistered online media, which is 14 calendar days. The temporary ban is applied in case of a significant violation, if within one month five fines were applied to the subject for such violations and the decision on them has not been canceled in the manner prescribed by law.
As reported, MPs passed the bill in the first reading on August 30. During the preparation of the document for the second reading MPs submitted 2332 amendments and suggestions.
Ukrainian President Vladimir Zelensky has called on French business to invest in the Ukrainian food industry.
Speaking by video link at the “Solidarity with the Ukrainian People” conference in Paris on Tuesday, Zelensky recalled that this year “through joint efforts we managed to stop the unfolding of the global food crisis.”
“We have already exported more than 13 million tons of grain. Thanks to our Grain from Ukraine initiative, we will help the poorest countries,” he said.
“But we also send humanitarian cargo to export, mostly raw materials, and we can send processed products. Right now there is a need to build a whole industry that will be export-oriented and definitely have consumers, and definitely give profit,” Zelensky said.
It would be right, he said, “if French business has already assessed the prospects and came to Ukraine. The same is in the energy, machine building, defense industry, transport and other industries.
Oil prices rose for the second consecutive session on expectations of increased demand in China as a result of easing quarantine restrictions while supply in the market decreased due to the closure of the Keystone oil pipeline.
Canada’s TC Energy, which suspended operation of the pipeline last week, is troubleshooting the issues and has not yet presented a plan to bring Keystone back online.
The shutdown of the pipeline, which connects oil fields in southern Canada and refineries in the U.S. Gulf Coast, reduced global supply by 600,000 barrels per day (bpd), while “the supply-demand balance there was already weak,” said Manish Raj, chief financial officer of Velandera Energy Partners, cited by Market Watch.
The price of February futures for Brent crude oil on London’s ICE Futures exchange is $79.12 a barrel by 7:10 a.m. CST on Tuesday, up $1.13 (1.45%) from the previous session’s close. Those contracts rose $1.89 (2.5%) to $77.99 a barrel at the close of trading on Monday.
The price of WTI futures for January oil grew by $1.01 (1.38%) to $74.18 per barrel at electronic trades of New York Mercantile Exchange (NYMEX). By the close of preious trading the cost of those contracts rose by $2.15 (3%) to $73.17 a barrel.
Both types of oil finished last week at their lowest level since December 2021, losing more than 11% over the week.
China’s ambassador to the United States, Qin Gang, said Monday that Beijing would continue to ease quarantine restrictions and expect to see an increase in foreign tourist arrivals in the near future. But the incidence of COVID-19 in the country continues to rise, and experts at the consulting firm FGE warned of the possibility of an unexpected tightening of restrictions by Beijing.
“Investor optimism about China’s easing of covey measures and likely increase in oil demand outweighs fears of a downturn in other parts of the world,” said Vishnu Varathan, an analyst at Mizuho Bank Ltd. in Singapore, quoted by Bloomberg.
