Brent Hits $60 Per Barrel Following Saudi Remarks

Pump jacks pump oil at an oil field on the shores of the Caspian Sea in Baku, Azerbaijan, October 5, 2017. Picture taken October 5, 2017. REUTERS/Grigory Dukor
Pump jacks pump oil at an oil field on the shores of the Caspian Sea in Baku, Azerbaijan, October 5, 2017. Picture taken October 5, 2017. REUTERS/Grigory Dukor
TT

Brent Hits $60 Per Barrel Following Saudi Remarks

Pump jacks pump oil at an oil field on the shores of the Caspian Sea in Baku, Azerbaijan, October 5, 2017. Picture taken October 5, 2017. REUTERS/Grigory Dukor
Pump jacks pump oil at an oil field on the shores of the Caspian Sea in Baku, Azerbaijan, October 5, 2017. Picture taken October 5, 2017. REUTERS/Grigory Dukor

Oil prices jumped about 2 percent on Friday, with global benchmark Brent crude rising above $60 per barrel, on support from Saudi Crown Prince Sheikh Mohammed bin Salman for extending an OPEC-led deal to rein in output.

The Organization of the Petroleum Exporting Countries, plus Russia and nine other producers, have cut output by about 1.8 million barrels per day (bpd) to get rid of a supply glut. The pact runs to March 2018 and they are considering to extend it.

The Saudi Crown Prince told Reuters this week he was in favor of extending the term of the agreement.

Russian President Vladimir Putin has also made similar remarks.

"OPEC welcomes the clear guidance from the Crown Prince of Saudi Arabia on the need to achieve stable oil markets and sustain it beyond the first quarter of 2018,” OPEC's Secretary General Mohammad Barkindo told Reuters on Friday.

"Together with the statement expressed by President Putin this clears the fog on the way to Vienna on Nov. 30."

Meanwhile, Exxon Mobil Corp (XOM.N), the world’s largest publicly traded oil producer, posted a higher-than-expected quarterly profit on Friday.

“A 50 percent increase in earnings through solid business performance and higher commodity prices is a step forward in our plan to grow profitability,” Darren Woods, Exxon’s chief executive officer, said in a statement.

Third-quarter net income jumped to $3.97 billion, or 93 cents per share, from $2.65 billion, or 63 cents per share, in the year-ago period. Exxon said Hurricane Harvey dented quarterly earnings by 4 cents per share.

Production rose about 2 percent to 3.9 million barrels of oil equivalent per day.

French oil and gas major Total (TOTF.PA) also reported a 29 percent jump in third-quarter net profit as project ramp-ups and new investments lifted production, joining a list of energy companies benefiting from higher crude prices.

“The group took full advantage of the favorable environment thanks to the performance of its integrated model and its strategy to reduce its breakeven point,” Chief Executive Patrick Pouyanne said in a statement.

Also on Friday Eni (ENI.MI) said it swung to a profit in the quarter.

Total’s net adjusted profit for the quarter hit $2.7 billion, in line with the average of forecasts from analysts polled by Reuters.



Euro 2024 Tourism to Bring 1$ Billion to Germany, Study Shows 

The words "Welcome to Berlin" can be read shortly before sunrise on a display in the fan zone (Platz der Republik) against the backdrop of the Reichstag and the TV tower in Berlin on Friday, June 14, 2024. (dpa/AP)
The words "Welcome to Berlin" can be read shortly before sunrise on a display in the fan zone (Platz der Republik) against the backdrop of the Reichstag and the TV tower in Berlin on Friday, June 14, 2024. (dpa/AP)
TT

Euro 2024 Tourism to Bring 1$ Billion to Germany, Study Shows 

The words "Welcome to Berlin" can be read shortly before sunrise on a display in the fan zone (Platz der Republik) against the backdrop of the Reichstag and the TV tower in Berlin on Friday, June 14, 2024. (dpa/AP)
The words "Welcome to Berlin" can be read shortly before sunrise on a display in the fan zone (Platz der Republik) against the backdrop of the Reichstag and the TV tower in Berlin on Friday, June 14, 2024. (dpa/AP)

Germany, the host of Euro 2024, can expect a 1 billion euro ($1.07 billion) boost to its economy thanks to foreign tourists traveling to the country for the soccer games, the ifo institute forecasts.

This corresponds to about 0.1% of economic output in the second quarter of the year, with Germany´s hospitality and food retail sectors set to benefit the most from the games, the country's top economic research institute said.

"However, the effect is only short-lived, so that exports of services due to returning tourists are likely to fall again after the end of the European Championship in the third quarter and remain the same on balance," ifo researcher Gerome Wolf said.

More than an additional 600,000 foreign tourists and 1.5 million additional overnight stays are expected during the Championship, according to the institute's calculations based on the numbers from the FIFA World Cup hosted by Germany in 2006.

The German Economy Ministry also expects a temporary upturn in consumer-facing sectors after very subdued retail sales this year, but not to the same extent as during the 2006 World Cup.

Experts agree that the overall effect of the Euro 2024 on Europe’s largest economy also depends on how the German national team performs in the tournament.

Their match against Scotland will kick off the tournament on Friday evening.