New oil equipment arrives in Venezuela after years of lack of investment

A bidding document and market participants reported on Wednesday that Kuwait Petroleum Corporation sold 85,000 tons of full-grade naphtha, at a premium of more than $120 per ton, above Japanese benchmark prices for the second half of December, on an over-the-board basis at the port of arrival.

The tender document showed that the shipment is scheduled to be loaded between November 1 and 11.

A naphtha trader said that the state-owned Kuwait Petroleum Corporation had placed the last previous bid for 55,000 tons for the same loading time, at a premium of between $70 and $75 per ton above standard Japanese prices based on delivery at the port of arrival as well.

The tender is the third for the Kuwait Petroleum Corporation this October, bringing the total quantities sold so far this month to 175 thousand tons through tenders.

The Norwegian company DNO announced, on Wednesday, an increase in net production in the North Sea to 85,364 barrels of oil equivalent per day, compared to 77,324 barrels of oil equivalent per day in the third quarter of 2026.

Oil prices achieved from the North Sea increased to $99.6 per barrel from $72 per barrel the previous year.

The company reported, in its operating results for the third quarter, that gas prices achieved from the North Sea rose to $122.9 per barrel of oil equivalent, compared to $63.8 per barrel of oil equivalent.

Crude oil sales from the Kurdistan region of Iraq jumped by nearly two-fold to 28,058 barrels of oil equivalent per day from 14,449 barrels of oil equivalent per day in the third quarter of 2026, compared to “zero” during the second quarter of 2026.

Oil prices achieved in Kurdistan rose to $38.5 per barrel from $31.2 per barrel during the third quarter of 2026, according to the company’s statement.

The company resumed production in Kurdistan at the end of last June after operations stopped for security reasons following the US-Israeli attacks on Iran in late February 2026.

Total production in the “Tawki” and “Fishkhabur” oil fields operated by the company in Kurdistan rose to 73,219 barrels per day from 46,572 barrels per day a year ago.

Chinese stocks continued to decline during trading on Wednesday, approaching their lowest levels in about a year, as the wave of selling deepened in companies linked to artificial intelligence supply chains, while inflation data showed a discrepancy between rising production costs and weak consumer demand. On the other hand, the yuan recorded a slight increase against the dollar, amid anticipation of US inflation data and the Federal Reserve’s directions.

The CSI 300 index of leading stocks fell by 0.3 percent by the mid-session break, while the Shanghai Composite Index stabilized with little change, and the Hang Seng Index in Hong Kong rose by 0.2 percent.

The pressure on the market came after data showed that producer prices in China rose during September at the fastest pace in more than four years, driven by the rise in oil and basic commodity prices, while consumer price inflation came below analysts’ expectations.

This discrepancy reflects a challenge for the Chinese economy, as companies face rising costs of raw materials and energy, while weak domestic demand limits their ability to pass these increases on to consumers, which may put pressure on profit margins.

Technology stocks were the most affected by the wave of selling, as investor appetite for companies benefiting from the artificial intelligence boom continues to decline.

The fifth generation communications index fell by 1.5 percent, while the “Star 50” index, which includes advanced technology companies, fell by 1.1 percent, and the stock of “Zhongji Innolight,” one of the prominent companies that manufactures optical transmitters and receivers used in artificial intelligence data centers, lost about 2.6 percent.

These movements indicate the continued revaluation of technology stocks, after a previous rise that raised the prices of a number of companies related to artificial intelligence infrastructure.

On the other hand, energy stocks benefited from the rise in oil prices and concerns regarding Saudi supplies, as the coal index rose by 1.2 percent, the energy index rose by about 2 percent, and basic consumer goods stocks increased by 0.7 percent, indicating that some investors are moving towards sectors less linked to the fluctuations of technological growth.

In Hong Kong, shares of major technology companies recovered by 1.6 percent, although the technology index remained near its lowest levels in two years.

Chinese indices are currently approaching levels seen about two years ago, when Beijing launched a broad stimulus package that boosted stock prices and raised hopes of the beginning of a long upward wave, before the market entered a downward trend that lasted three months.

In light of these developments, HSBC analysts reduced their targets for the end of 2026 for the Shanghai Composite, CSI 300, and Shenzhen Composite indices by rates ranging between 9 and 15 percent.

The bank set its new targets at 4,100 points for the Shanghai Index, 4,800 points for the CSI 300 Index, and 14,500 points for the Shenzhen Index, which are levels that indicate the possibility of an increase ranging between 8 and 15 percent compared to current levels.

Although value stocks have outperformed growth stocks since July, the bank's analysts believe that this trend may be temporary, in light of the decline in valuations for growth stocks and the improvement in their profit expectations.

In the currency market, the Chinese yuan rose slightly against the dollar, supported by the decline of the US currency from its highest levels in 18 months.

The yuan opened trading at 6.6935 to the dollar, before rising to 6.6919 by 03:04 GMT, achieving slight gains compared to the close of the previous session.

The People's Bank of China had set the daily reference rate at 6.7249 yuan to the dollar, the strongest level since February 2, 2023, although it was 327 points weaker than Reuters estimates.

The Chinese trading system allows the yuan to move within a range of 2 percent up or down around the daily reference rate.

The Chinese currency has risen by 0.2 percent since the beginning of October, and by about 4.5 percent since the beginning of the year, while the yuan was trading in foreign markets at 6.6923 to the dollar.

China Securities analysts expect the yuan to continue its gradual rise during the remainder of 2026, suggesting it will reach a range between 6.6 and 6.7 to the dollar by the end of the year.

Analysts believe that China's trade surplus and cautious monetary policy management provide support for the currency, despite the continued impact of dollar movements and cross-border capital flows.

On the other hand, OCBC Bank analysts warned of the possibility of the yuan entering a stage of technical consolidation in the near term, especially if the pace of strengthening the daily reference rate stops.

Markets are awaiting the release of US consumer price data, in addition to statements by Federal Reserve officials, to obtain new indicators about the path of US interest rates and its impact on the dollar and Asian currencies.

The dollar index fell by 0.08 percent to 102.10 points, as investors re-evaluated the strength of the US currency after its recent rise.

Wednesday's movements reveal a clear discrepancy in Chinese markets. While stocks are under pressure from weak domestic demand and correcting technology valuations, the yuan benefits from a trade surplus and a weaker dollar.

The direction of the markets during the coming period will remain dependent on the ability of companies to maintain the growth of their profits, the extent of improvement in internal demand, in addition to developments in energy prices and US monetary policy.