Page 24 - ARUBA TODAY

Tuesday 16 May 2017 BUSINESS
A24

Oil’s well: Saudis, Russians

Rising energy stocks help send S&P 500 to record back extension of
cuts in oil output
By STAN CHOE Monday’s rise for crude Monday even after North been rallying not only in MOSCOW (AP) — Rus-
AP Business Writer helped oilfield services Korea launched a missile the United States but also sia and Saudi Arabia said
NEW YORK (AP) — A spurt provider Halliburton jump over the weekend and its in Europe and other areas Monday they want to ex-
in oil prices on Monday $1.37, or 3 percent, to leader promised more mis- that have been struggling tend oil production cuts
revived energy stocks, $46.51 for one of Monday’s sile tests. The worldwide for years. through the first quarter of
which have been among biggest gains in the S&P “ransomware” cyberat- The recent run of calm- 2018, in a move the two
the year’s worst perform- 500. Energy companies tack continued to spread ness is a sharp turnaround major producers say would
ers, and helped push the across the index rose 0.6 on Monday, which sent cy- from the start of last year, support the market price.
broader market back to Oil prices rose on the an-
record highs. nouncement that the
The Standard & Poor’s 500 countries want to extend
index climbed 11.42 points, the deal, which encom-
or 0.5 percent, to 2,402.32, passes both nations in the
edging past its prior record Organization of the Pe-
set last week. troleum Exporting Coun-
The Dow Jones industrial tries and some non-OPEC
average gained 85.33 countries like Russia.
points, or 0.4 percent, to The Russian Energy Minis-
20,981.94, the Nasdaq try says extending the cuts
composite gained 28.44, through March 31, 2018,
or 0.5 percent, to 6,149.67 would show “producers’
and the Russell 2000 index determination to ensure
of smaller stocks rose 11.15 stability, predictability and
points, or 0.8 percent, to incremental development
1,393.92. of the market.”
Energy stocks helped lead Russia and Saudi Arabia
the way after the price of will now hold consulta-
oil jumped on expecta- tions with other producers
tions that the global glut of “with the aim of achieving
crude may ease. complete consensus” on
A wide group of oil-produc- the extended production
ing countries has already A man walks to work on Wall Street, near the New York Stock Exchange, in New York. A spurt in oil cuts before the scheduled
cut production in hopes of prices on Monday revived energy stocks, which have been among the year’s worst performers, OPEC meeting May 25 in
supporting the price of oil, and helped push the broader market back to record highs. Vienna.
and Russia and Saudi Ara- (AP Photo/Mark Lennihan) “I met the managers of
bia said they want to ex- all the main oil and gas
tend the cuts through the percent. bersecurity stocks like Fire- when twitchy investors companies in the country,
first three months of 2018. Companies that produce Eye and Symantec higher, were quick to sell on wor- and the minister of energy,
Benchmark U.S. crude rose metals and other basic while politicians in Wash- ries about the global econ- behind closed doors and
$1.01, or 2.1 percent, to materials, along with fi- ington wonder whether omy. we discussed this issue,”
settle at $48.85 per barrel. nancial stocks, were also Republicans’ odds of im- “We do really see this pre- Russian President Vladimir
Brent crude, the interna- strong. plementing tax cuts and vailing sense of compla- Putin said in comments
tional standard, rose 98 The day’s rally continued a other pro-business policies cency,” said Jon Adams, reported by Russian news
cents to $51.82 a barrel. calm push higher for stocks have diminished. senior investment strategist agencies. “We support this
The price of oil has swung in recent weeks. Markets For the most part, signs of a at BMO Global Asset Man- proposal.”
sharply in recent years, around the world have strengthening global econ- agement. “I don’t think we The international bench-
from more than $100 three been making modest, me- omy and improving cor- see any dark clouds on the mark for crude oil was up
years ago to less than $30 thodical gains as investors porate profits have been horizon, but I wouldn’t be $1.35, of 2.7 percent on the
last year, as concerns wax shrug off a long list of po- enough to allay investors’ surprised to see a 5 to 10 day, at $52.19 a barrel on
and wane that supplies will tential concerns. fears and push markets to percent drawdown from the news.
overwhelm demand. South Korean stocks rose new heights. Profits have now to year-end.” In late November, OPEC
Anheuser-Busch boosts spending to adapt to market agreed to cut produc-
tion by 1.2 million barrels a
day, the first such reduc-
NEW YORK (AP) — Anheus- the company said Monday 2 percent, including a 1.6 say how many new jobs it tion agreement since 2008.
er-Busch is upgrading its it will invest in its U.S. opera- percent volume decline in expects this year’s U.S. in- The following month, 11
U.S. breweries and plans to tions this year, marking an North America. vestments to create. It has non-OPEC oil-producing
build two new distribution increase compared with The same thing is hap- added around 2,500 jobs countries pledged to cut
centers as it adapts to an recent years. pening with non-alcoholic since 2013, the company another 558,000 barrels a
increasingly fragmented It’s a portion of the $3.7 drinks. PepsiCo CEO Indra said. Anheuser-Busch em- day, bringing the overall
beer market. billion in global capital ex- Nooyi has said the industry ploys more than 17,000 reduction to 1.8 million bar-
The maker of Budweiser, penditures that the Belgian is becoming more “niche,” people in the U.S. rels a day.
Bud Light and Stella Artois company had already and that PepsiCo needs to In 2015, Anheuser-Busch Oil producers have been
says the upgrades and new budgeted for 2017. learn how to thrive amid had said it expects to in- trying to boost prices, as
distribution centers in Los Anheuser-Busch has strug- that growing complexity. vest $1.5 billion from that crude futures trade around
Angeles and Columbus, gled to boost sales volumes The investment announced year to 2018. The Monday $50 a barrel,
Ohio will allow it to store a as craft beers grow increas- by Anheuser-Busch Mon- announcement was an up- less than half their level
greater variety of products ingly popular in an already day includes upgrades to date, with the company from early 2014, though
and get them to custom- crowded marketplace. breweries in Fort Collins, saying it is spending $2 bil- above the low of below
ers faster. The measures are In 2016, total volume at Colorado and St. Louis, Mis- lion from this year through $30 in early 2015.q
part of the $500 million that Anheuser-Busch declined souri. The company did not 2020. q