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S-Oil to Supply Oil Products to Aramco's Trading Unit

FILE PHOTO: The Saudi Aramco logo is pictured at the company's oil facility in Abqaiq, Saudi Arabia, October 12, 2019. REUTERS/Maxim Shemetov/File Photo
FILE PHOTO: The Saudi Aramco logo is pictured at the company's oil facility in Abqaiq, Saudi Arabia, October 12, 2019. REUTERS/Maxim Shemetov/File Photo
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S-Oil to Supply Oil Products to Aramco's Trading Unit

FILE PHOTO: The Saudi Aramco logo is pictured at the company's oil facility in Abqaiq, Saudi Arabia, October 12, 2019. REUTERS/Maxim Shemetov/File Photo
FILE PHOTO: The Saudi Aramco logo is pictured at the company's oil facility in Abqaiq, Saudi Arabia, October 12, 2019. REUTERS/Maxim Shemetov/File Photo

South Korea’s third-biggest refiner, S-Oil, has signed a contract to supply a total of 3.1 trillion won ($2.66 billion) of refined oil products to Saudi Aramco’s trading arm, it said on Wednesday.

A regulatory filing showed the firm will supply up to 10 million barrels of diesel, up to 15 million barrels of naphtha, up to 11 million barrels of jet fuel and up to 8 million barrels of gasoline to Aramco Trading Singapore under the contract, valid between Jan. 1 and Dec. 31, 2020.

S-Oil’s top shareholder is Saudi Aramco.

Oil prices were mixed on Wednesday as worries about the coronavirus outbreak and swelling US crude inventories weighed on prices, counter-balanced by talk that OPEC could extend oil output cuts.

The Organization of the Petroleum Exporting Countries wants to extend production cuts, currently planned till the end of March, until at least June, and could deepen reductions should oil demand in China fall significantly due to the coronavirus, OPEC sources said.

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Gold Gains as Dollar off 2-month Highs on Fed Rate Cut Expectations

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
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Gold Gains as Dollar off 2-month Highs on Fed Rate Cut Expectations

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk

Gold extended gains after the release of the latest data on US producer prices on Friday, as the US dollar pulled back from two-month highs on heightened expectations for a Federal Reserve rate cut in November.

Spot gold rose 0.7% to $2,647.55 per ounce by 1316 GMT. US gold futures gained about 1% to $2,665.

US producer prices were unchanged in September, pointing to a still-favorable inflation outlook and supporting views that the Fed would cut interest rates again next month.

"After stronger-than-expected US jobs data and higher-than-expected inflation data, the market is a bit split on how many rate cuts we will see from the Fed over the coming months," UBS analyst Giovanni Staunovo said, Reuters reported.

Data on Thursday showed US consumer prices rose slightly more than expected in September, but the annual increase in inflation was the smallest in more than 3-1/2 years.

Slowly cooling inflation and a US job market that remains strong but at the risk of deteriorating give a green light for more interest-rate cuts in coming months, Fed policymakers indicated on Thursday.

The CME FedWatch tool shows markets currently see an 84.4% chance of a 25-basis-point rate reduction in November and a 15.6% probability of the Fed keeping rates on hold.

"Gold prices are likely to stay volatile in the short term, but we look for higher prices as we look for further rate cuts by the Fed," Staunovo said.

Gold is on track for its second straight week of declines after prices retreated from a record high of $2,685.42 hit last month.

Physical gold dealers in India charged premiums for the first time in two months this week as the upcoming festival season attracted some jewellery buying.

Spot silver rose 0.7% to $31.41 per ounce and platinum climbed 1.2% to $979.20. Both metals were headed for weekly declines.

Palladium firmed 0.2% at $1,071 and was up nearly 6% for the week.