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Crude oil futures decline
May 16th, 2013
Crude Oil – West Texas Intermediate crude fell for the fifth time in six days amid signs of economic weakness in the U.S. and Europe that threaten fuel demand.
Crude oil futures slid as much as 0.4 percent in New York. U.S. industrial production dropped the most in eight months in April, manufacturing in the New York region unexpectedly shrank in May and the euro-area economy contracted more than forecast in the first quarter. A measure of U.S. fuel consumption declined by 584,000 barrels last week to 18.5 million barrels a day, Energy Information Administration data yesterday showed.
“All the key players on the demand side basically see muted growth,” said David Lennox, a resource analyst at Fat Prophets in Sydney. “That will put significant downward pressure on crude prices. The EIA numbers, especially diesel, have shown for the last couple of weeks a weakening trend.”
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Brent crude oil futures fall
May 9th, 2013
Crude Oil Futures – Brent futures fell for a third session as crude inventories in the U.S. increased. Iraq resumed oil exports via Turkey today after a halt caused by sabotage to a pipeline.
Brent dropped as much as 0.8 percent. Total U.S. crude stockpiles rose by 230,000 barrels, according to the Energy Department. Iraq’s state-run North Oil Co. repaired the pipeline to Turkey following a bombing attack yesterday in the city of Mosul. The weekly U.S. jobless claims will be announced at 8:30 a.m. Washington time and are expected to show an increase to 335,000, according to a Bloomberg survey.
“The market looks to be taking stock, awaiting the next economic data,” said Michael Hewson, a market analyst at CMC Markets Plc in London who expects WTI to peak at $98 this year. “It’s a demand story at the moment as inventories keep rising. We need positive economic news to stop the fall and that could come with the weekly jobless claims.”
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Crude oil futures tumble
May 1st, 2013
Crude Oil Futures – West Texas Intermediate crude tumbled as U.S. inventories reached an 82-year high amid signs of economic slowdown in the U.S. and China.
Futures headed for the biggest loss in almost six months after the Energy Information Administration said stockpiles jumped to 395.3 million barrels in the seven days to April 26, the most since the government began gathering weekly data in 1982. According to monthly data, they were last at this level in 1931. U.S. companies added fewer workers than forecast in April, and China’s manufacturing grew at a weaker pace, separate reports showed.
“WTI, in our view, is prone to some downward pressure,” said Michael Wittner, the head of oil-market research at Societe Generale SA in New York. “The U.S. is very comfortably supplied. The macroeconomic data flow continues to be weak.”
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Crude oil futures rises
April 24th, 2013
Crude Oil Futures – West Texas Intermediate crude rose to a one-week high amid speculation that the European Central Bank will cut its key interest rate to a record low. Futures maintained gains after a report showed that U.S. supplies rose less than analyst estimated.
Prices climbed as much as 1.9 percent as banks including UBS AG and Royal Bank of Scotland Group Plc (RBS) forecast that the ECB will cut borrowing costs to 0.5 percent. The Energy Information Administration said supplies rose 947,000 barrels to 388.6 million. Inventories were projected to increase 2 million barrels, according the median of 11 analyst responses in a Bloomberg survey.
“The world’s central banks are in the driver’s seat right now,” said David McAlvany, chief executive officer of McAlvany Financial Group in Durango, Colorado, which manages $520 million. “The market is well supplied and demand is weak. The fundamentals indicate that prices should be $5-to-$10 lower.”
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April 9th, 2013
West Texas Intermediate rose for a second day after China reported inflation eased more than forecast last month. U.S. crude stockpiles probably increased to the highest level in 22 years, a Bloomberg survey showed.
Crude oil futures gained as much as 0.5 percent in New York after advancing the most in almost two weeks yesterday. Goldman Sachs Group Inc. (GS) forecast that supplies at the U.S. delivery hub in Cushing, Oklahoma, will shrink at the end of next month, and pushed back its recommendation for trading the discount on WTI versus Brent. U.S. crude inventories climbed by 1.5 million barrels in the week to April 5 to 390 million, according to a Bloomberg survey before the Energy Department releases data tomorrow.
“Any healthy demand for oil will have to come from Asia or the Middle East,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark. “Hopes for a Chinese money bazooka have increased.”
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April 2nd, 2013
West Texas Intermediate crude slid for a second day amid speculation that U.S. inventories climbed to the highest level in more than 22 years.
Crude oil futures fell as much as 0.5 percent in New York. U.S. crude supplies probably increased 2.3 million barrels last week, according to a Bloomberg News survey of analysts before a government report tomorrow. Prices slipped yesterday after data showed U.S. manufacturing grew less than forecast in March. Exxon Mobil Corp. (XOM) is developing a plan to repair a damaged section of the Pegasus pipeline that moves crude to Gulf Coast refineries. The line was shut because of a leak.
“It is possible to have another sharp build in crude stocks that could set a bearish tone,” Myrto Sokou, an analyst at Sucden Financial Ltd. in London, said in an e-mail. “The weak U.S. PMI data adds some pressure to the oil market, raising renewed concerns about a possible slowdown in oil demand. Prices are in consolidation mode, struggling to find some direction ahead of the U.S. economic releases,” including one today on factory orders.
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March 28th, 2013
West Texas Intermediate traded near its highest in five weeks and was set for a quarterly gain after U.S. government data showed refineries raised operating rates.
Crude oil futures rose as much as 0.4 percent in New York and have gained 5.2 percent in the past three months. Refineries ran at 85.7 percent of capacity last week, up 2.2 percentage points from the prior week and the most since January, figures from the Energy Department showed yesterday. U.S. crude stockpiles increased 3.3 million barrels, according to the report. They were forecast to gain 1.33 million barrels, an earlier Bloomberg News survey showed.
“Fundamentals remain well-balanced,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark. “Global oil demand remains near all-time highs.”
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March 26th, 2013
West Texas Intermediate crude advanced to the highest level in almost five weeks as U.S. orders for durable goods climbed more than forecast in February. WTI’s discount to Brent was the narrowest since July.
Crude oil futures gained for a third day after the Commerce Department said bookings for goods meant to last at least three years rose 5.7 percent, the most since September and more than the 3.9 percent forecast by economists surveyed by Bloomberg. The spread between WTI and Brent, Europe’s benchmark, has shrunk as U.S. refinery demand and North Sea output have increased.
“The durable goods number is higher than expected and it shows the U.S. economy is on good footing,” said Tariq Zahir, a New York-based commodity fund manager at Tyche Capital Advisors. “You are continuing to see the Brent-WTI spread contract massively. It looks like the U.S. economy is doing better than Europe.”
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March 5th, 2013
Crude oil futures rebounded from the lowest level in 10 weeks as traders speculated recent declines may have been excessive, while a North Sea pipeline system remained shut after a platform leak.
Both West Texas Intermediate and Brent futures rose as much as 0.6 percent. The Brent pipeline system was closed for a third day after an oil leak was discovered March 2 on the Cormorant Alpha platform, according to Abu Dhabi National Energy Co. (TAQA) PJSC, the operator known as Taqa. U.S. crude stockpiles probably increased for a seventh week, the longest stretch since May, a Bloomberg News survey showed before Energy Department data tomorrow.
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January 24th, 2013
Crude oil climbed after reports pointed to accelerating global growth and as the spread between West Texas Intermediate crude in the U.S. and London’s Brent narrowed on speculation the Seaway pipeline will soon resume full shipments.
Crude oil futures rose 0.8 percent as U.S. jobless benefit claims fell to a five-year low. WTI’s discount to Brent widened yesterday after Enterprise Products Partners LP (EPD) said capacity was limited on Seaway, cutting shipments from the central U.S. to the Gulf Coast. An Energy Information Administration report showed crude supplies rose last week.
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