Market round-up: Power PLFs trend lower in June

Sluggish demand and the onset of the monsoon weighed on the plant load factors (PLFs) in the power sector during June. When compared to a year back, the overall PLF declined by 6.4 percentage points to 48.9%, excluding renewables. PLF fell sharply across coal and nuclear plants though it rose in the hydro segment. Emkay Global Financial Services Ltd explained in a recent report that the fall in PLF was partly because 23.4% of the current installed capacity in power has been added in the last three years at a time when demand expanded by a paltry 2.8% compound annual growth rate.

Oil sceptics exit as market dispels gloom to flirt with $50

As pessimism over oil dissipates and investors flirt with $50 a barrel again, short-sellers are getting out of the way.

Hedge funds are the most upbeat about West Texas Intermediate (WTI) crude in three months after bets on declining prices shrank. Meanwhile, signs that the shale boom is slowing and the market is moving closer to balance set the mood for futures to jump 8.6% last week.

Hints of relief came from everywhere. Saudi Arabia, Kuwait and the United Arab Emirates pledged to ship less crude. Halliburton Co. said shale explorers are “tapping the brakes,” and producers from ConocoPhillips to Statoil ASA slashed spending plans. US oil stockpiles fell to the lowest since January.

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