Citigroup Inc.’s


C 2.11%

third-quarter profit slumped 34% and the bank set aside billions of dollars to cover potential losses in the coronavirus recession.

Citigroup posted a profit of $3.23 billion, or $1.40 a share, down from $4.91 billion, or $2.07 a share, one year ago. Analysts had expected 91 cents a share, according to FactSet. In the second quarter, profit had fallen to 50 cents a share.

Revenue in the consumer bank fell as people continued to struggle through the recession. The Wall Street operations turned in higher revenue as trading surged in the uncertain market and bankers helped nervous companies raise cash and sell stocks and bonds to ride out the downturn. JPMorgan Chase & Co., which also reported results Tuesday, followed a similar pattern, though its overall profit rose 4%.

Still, the results were better than the second quarter’s and topped analyst expectations. The bank slowed the pace of bulwarking for its loan portfolio, socking away another $2.26 billion of loan-loss provisions in the quarter. It had put more than $7 billion aside in each of the past two quarters.

Citigroup has had its own upheaval as well. Chief Executive Michael Corbat surprised analysts when he announced last month he would retire in February, handing the reins to bank President Jane Fraser. Last week, regulators hit Citigroup with a $400 million fine and orders to take expensive, time-consuming steps to improve its risk management infrastructure. Citigroup’s shares are down 43% this year, underperforming the KBW Nasdaq Bank Index’s 30% drop.

Total revenue fell 7% to $17.3 billion from $18.57 billion. Analysts had expected $17.21 billion.

In the consumer bank, revenue dropped 13% and profit declined 30%.

The investment and corporate banking operations held up better than the consumer bank. Companies continued to raise new money from stocks

(Bloomberg) — Oil dropped for a second day as operations in the U.S. Gulf of Mexico started to resume following Hurricane Delta and Libya took a major step toward reopening its biggest field.

Futures in New York fell toward $40 a barrel after closing down 1.4% Friday as oil workers in Norway called off a strike. Crude explorers and tugboat operators got back to work on Saturday after Delta, which had seen about 92% of oil production and 62% of gas output shuttered. The hurricane and hopes for more U.S. fiscal stimulus contributed to a price jump of almost 10% last week.

Libya’s National Oil Corp. lifted force majeure on the western deposit of the Sharara field and instructed its operator to resume production, according to a statement on Sunday. Sharara’s output will reach its daily capacity of almost 300,000 barrels in 10 days, a person with knowledge of the situation said.



graphical user interface: Oil Tapering


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Oil Tapering

The resumption of supply from the North African country is an added headache for the OPEC+ alliance as it considers whether to proceed with a plan to restore more output in January. With coronavirus cases accelerating in many countries, the group faces a tough decision at its next policy meeting on Nov. 30-Dec. 1.

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“We have supply coming back to the market, while there is still plenty of concern over demand, with the flaring up in Covid-19 cases in parts of Europe,” said Warren Patterson, head of commodities strategy at ING Bank NV in Singapore. With Libya coming back, the market is close to balance, but it will depend on demand assumptions, he said.

Prices
West Texas Intermediate for November delivery fell 0.8% to $40.28 a barrel on the New York Mercantile Exchange at 10:14 a.m. in SingaporeThe contract rose 9.6% last

(Bloomberg) — Oil fell for a second day as operations in the U.S. Gulf of Mexico started to resume following Hurricane Delta and Libya took a major step toward reopening its biggest field.

Futures in New York dropped below $40 a barrel after closing down 1.4% Friday as oil workers in Norway called off a strike. Crude explorers and tugboat operators got back to work on Saturday after Delta, which had seen about 92% of oil production and 62% of gas output shuttered. The hurricane and hopes for more U.S. fiscal stimulus contributed to a price jump of almost 10% last week.

Libya’s National Oil Corp. lifted force majeure on the western deposit of the Sharara field and instructed its operator to resume production, according to a statement on Sunday. Sharara’s output will reach its daily capacity of almost 300,000 barrels in 10 days, a person with knowledge of the situation said.



graphical user interface: Oil Tapering


© Bloomberg
Oil Tapering

The resumption of supply from the North African country is an added headache for the OPEC+ alliance as it considers whether to proceed with a plan to restore more output in January. With coronavirus cases accelerating in many countries, the group faces a tough decision at its next policy meeting on Nov. 30-Dec. 1.

Video: Hurricane Delta roils oil rigs, squeezes gasoline prices (Fox Business)

Hurricane Delta roils oil rigs, squeezes gasoline prices

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Prices
West Texas Intermediate for November delivery fell 1.5% to $39.99 a barrel on the New York Mercantile Exchange at 8:18 a.m in Singapore.The contract rose 9.6% last week.Brent for December settlement dropped 1.5% to $42.22 on the ICE Futures Europe exchange after declining 1.1% on Friday.

Iraq expects crude prices to remain at around $41 to $42 a barrel this year before rising to $45

TOKYO (Reuters) – The dollar inched up in early Monday trade as riskier currencies slipped after negotiation on a U.S. stimulus package ran into resistance and as the yuan dropped after China’s central bank took a measure seen as aimed at curbing its strength.

The euro slipped 0.15% to $1.1818

while the Australian dollar shed 0.25% to $0.7223

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The yen was little changed at 105.65 to the dollar

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The U.S. dollar index edged up to 93.104 <=USD>, bouncing back from Friday’s near-three-week low of 92.997. The index saw its biggest loss in six weeks on Friday on hopes that a deal for new U.S. stimulus would be reached.

President Donald Trump on Friday offered a $1.8 trillion coronavirus relief package in talks with House Speaker Nancy Pelosi – moving closer to Pelosi’s $2.2 trillion proposal.

But Trump’s offer drew criticism from several Senate Republicans, many of whom are uneasy about the nation’s growing debt and concerned a deal would cost Republicans support in the upcoming presidential election, denting the risk-on mood.

Still, with Nov. 3 election only weeks away, investors bet that Democrat Joe Biden is more likely to win the U.S. presidency and offer a larger economic package.

“On the whole, the big picture has not changed that much,” said Kyosuke Suzuki, director of forex at Societe Generale.

The offshore Chinese yuan dropped after the People’s Bank of China (PBOC) said it will lower the reserve requirement ratio for financial institutions when conducting some foreign exchange forwards trading.

Analysts said the measure could keep the yuan’s strength in check by encouraging the use of forwards.

“The authorities have not stood in the way of yuan strength, but this move could be seen as a sign that they want to slow the pace of appreciation,”

U.S. Oil Industry Prioritizes Output Over Debt

Photographer: Angus Mordant/Bloomberg

Oil slipped a second day as operations in the Gulf of Mexico began to resume following Hurricane Delta, Libya stepped up plans to restart production and oil workers in Norway called off a strike.

Futures in New York fell as much as 0.9%, after declining 1.4% on Friday. U.S. Gulf operators are beginning to restart production after the storm made landfall on Friday. Delta’s approach had seen about 92% of oil production and 62% of gas output shuttered.

Libya took a major step toward reviving its battered oil industry by reopening its biggest field. The Sharara field will initially pump 40,000 barrels of crude a day, before reaching its capacity of almost 300,000 barrels in 10 days, a person with knowledge of the situation said.

The resumption of supply from Libya is an added headache for OPEC and its allies as they mull whether to proceed with plans to further taper production curbs in January. With coronavirus cases accelerating in many countries, the cartel faces a difficult decision at its next policy meeting on Nov. 30-Dec. 1 to stay the course or delay the increase in production.

Oil Tapering

OPEC+ created a three phase program of production cuts in response to the plunge in demand brought about by the coronavirus pandemic

Sources: OPEC and Bloomberg News

Prices
  • West Texas Intermediate for November delivery fell 25 cents to $40.35 a barrel on the New York Mercantile Exchange at 9:11 a.m Sydney time.
    • November WTI declined 59 cents to settle Friday at $40.60 a barrel. The contract rose 9.6% last week.
  • Brent for December settlement eased 29 cents to $42.56 a barrel. Dec. Brent lost 49 cents to end Friday’s session at $42.85 a barrel. The benchmark posted a 9.1% weekly gain.

Crude rallied last week