Brent Steady Near $105 Ahead of FED Minutes
May 20 2013 9:03 AM
Brent crude oil traded steadily at $104.62 on Monday morning at 5:58 GMT as the commodity inched towards $105 on improving economic data and strong equity markets. However, a tepid demand outlook and market oversupply kept a lid on prices. Last week, the International Energy Agency forecast both waning oil demand growth and increasing supply which put pressure on Brent prices. At the moment, the markets are well supplied; and with most of the world's largest consumers struggling to kick start their economies, crude demand has shown no signs of improvement.
Transocean Has Bittersweet News For Carl Icahn
May 17 2013 2:30 PM
A sweeping majority of Transocean shareholders voted down Icahn's proposal for a $4 a share dividend and voted out chairman Michael Talbert.
Strong Dollar Weighs on Brent Prices
May 17 2013 8:03 AM
A strong dollar and demand worries kept Brent under pressure on Friday morning after news that the US Federal Reserve may end its monetary stimulus lifted the greenback. Brent is poised to end the week with little change and traded at $104.15 at 9:41 GMT on Friday morning. CNBC reported that three Federal Reserve officials were calling for an end to the US central bank's monetary stimulus program. The news strengthened the dollar and made oil more expensive to holders of other currencies. Moving forward, most will be watching for major changes in the dollar, as the greenback is expected to drive oil prices in the short term.
Abercrombie Signs On To Workers' Rights Accord in Bangladesh
May 16 2013 12:06 PM
Abercrombie & Fitch Co. (NYSE:ANF) has joined several other retailers in signing an accord aimed at improving factory safety in Bangladesh.
Oil prices starting the day in negative territory
May 16 2013 7:55 AM
Oil prices continued their decline for the sixth trading session (basis WTI) in row as the current fundamentals point to lower prices. The market remains focused on projections for lower oil demand growth, robust supply and building inventories. Yesterday total crude oil and refined product inventories built again in the US by 2.6 million barrels (see below for a more detailed discussion on this week's inventory report). Further adding to the concern in the market has been macroeconomic data that continues to suggest that the global economy is faltering. Yesterday GDP data out of Europe showed France now moving into recession with the overall EU recession deepening a tad last quarter.
Nat Gas steady ahead of EIA inventory report
May 16 2013 7:49 AM
Nat Gas futures remain in a short term upward move with the spot contract now remaining above the key $4/mmbtu for the third day in a row. As I have been discussing in detail in the newsletter I view the current move above the $4/mmbtu to be primarily technically driven as the current fundamentals have not changed and are neutral at best. The spot contract is now in a $4 to $4.16/mmbtu trading range. Whether or not the market is going to be able to remain in this range and even move above it will be very dependent on what is in store with the upcoming summer cooling season (yet to get underway).
Brent Nears $103 on Falling Stockpiles
May 16 2013 7:44 AM
Brent crude oil slid toward $103 on Thursday following an unexpected drop in US factory output. The data added to uncertainty about future demand and brought Brent prices down to $103.14 at 9:20 GMT on Thursday morning. A steep drop in US factory output caused concern among investors who worried about the state of the global economy. Many attributed the lack of demand for exports to the ongoing eurozone recession and sluggish growth in China.
Chinese Rush To Ghana For Gold, Monopolize Small-Scale Mines
May 15 2013 1:13 PM
The people of Shanglin county in southern China have ventured to an unlikely place to seek their fortunes.
Nat Gas futures still above $4/mmbtu level
May 15 2013 8:31 AM
For the first time in well over a week the spot Nat Gas contract was able to settle above the key $4/mmbtu technical resistance area. The market has been in the midst of a short covering rally since trading began on Monday. The majority of the upside move and breaching of the $4/mmbtu is mostly driven by a technical move as the overall fundamentals have not changed all that much over the last week or so. Technically the spot futures contract is now in a new higher trading range of $4/mmbtu on the support side and $4.16/mmbtu as the upper resistance level. I am still of the view that the market will need fundamentals support to sustain a move to the upside from current levels.
Frances falls into recession
May 15 2013 8:27 AM
The growing market concern over the weakening oil fundamental picture is continuing to pressure oil prices with the complex declining for the fourth trading session in a row. The fact that the US dollar index was also strong yesterday contributed to the selling in the oil pits. The rally in equity markets… normally a positive driver for oil prices… was largely ignored with the strong US dollar and prospects for weaker demand turning out to be the main negative price drivers for the complex.
Brent Slips as Supply Outpaces Demand
May 15 2013 8:20 AM
Brent crude oil slid toward $102 on Wednesday as rising supply and waning demand kept a lid on prices. The commodity traded at $102.22 at 7:47 GMT on Wednesday morning. The Wall Street Journal reported that a figures from the International Energy Agency on Tuesday showed that output from the Organization of Petroleum Exporting Countries increased to 30.7 million barrels per day from 200,000 bpd. According to the IEA, that exceeds the world's needs by about 1.8 million barrels.
Oil prices still on defensive
May 14 2013 8:54 AM
Oil prices are drifting lowering in overnight trading as the bearish fundamental outlook continues to weigh on prices. Both Brent and WTI have declined for the last several trading sessions with both now back into a new lower trading range. Although the IEA did not lower its oil demand forecast (see below for the highlights from today's report) it did paint a bearish picture on the supply side indicating that the market is biased to the oversupplied side of the equation. The short to medium term fundamental outlook remains the same… oil demand is faltering, supply is robust and growing and US crude oil inventories are at the highest level since the 1930's.
Brent Steadies on Hopes of US Recovery
May 14 2013 8:48 AM
Brent crude oil neared $103 on Tuesday as hopes that the US economy was getting back on track countered the commodity's losses due to waning demand. Brent traded steadily at $102.92 at 6:12 GMT on Tuesday morning. The commodity suffered losses on Monday after Chinese refineries dropped their processing to an eight month low. Businessweek reported that the nation's refining slipped to 9.36 million barrels per day, eight percent lower than December's record. China's apparent oil demand also fell to an 8 month low in April and reconfirmed concern about the nation's lack of recovery.
CFTC Investigating Commodities Markets
May 14 2013 1:25 AM
The CFTC is investigating the legitimacy of more than 1 million energy and metals transactions by the biggest traders.
Oil prices lower on China data
May 13 2013 8:39 AM
Overnight the economic data out of China was yet another sign that the main economic and oil demand growth engine of the world is slowing. China's factory output growth for the month of April came in below expectations. China's April industrial output increased to 9.3 percent in April but below the 9.5 percent market consensus. Fixed asset investment also came in below the expectations growing by 20.6 percent in the first four months of 2013 compared to the same timeframe last year. The market was expecting a growth rate of 21 percent.
Brent Under Pressure From Chinese Data
May 13 2013 8:34 AM
Brent crude oil ended last week on a low and settled at $102.94 at 7:42 GMT on Monday morning. The commodity suffered after implied oil demand and refinery crude in China fell and added to suspicion that the number two oil consuming nation's economy was still struggling.
Will Oil Futures Stop the Fed’s QE Program?
May 13 2013 8:11 AM
The sell-side analysts and economists are reminding retail investors that risk assets in the United States have been on quite a tear to the upside recently. A correction now lasts a matter of days, if not hours before the bulls push equity prices even higher.
Oil prices on the defensive
May 10 2013 8:38 AM
Although it looks like the oil market is heading for its third weekly gain in a row the market has been retracing in overnight trading. The spot WTI contract remains above its breakout level of $95/bbl which was breached earlier in the week while the rest of the complex is hovering very close to it range support level. The oil complex remains in a battle between faltering oil demand growth and the support coming from the very easy monetary policies in many areas of the global economy.
Brent Remains Near $104 on Mixed US and Chinese Data
May 10 2013 8:28 AM
Brent crude oil traded steadily near $104 on Friday morning as mixed signals kept the commodity trading in a tight range. Brent traded at $104.11 at 8:05 GMT on Friday morning after positive US data gave the commodity a lift, but uncertainty in China kept a lid on prices.
Oil prices starting the session lower
May 09 2013 8:38 AM
Oil prices are drifting lower after a positive trading session in WTI on Wednesday. Although WTI traded in positive territory throughout most of Wednesday's session the rest of the complex struggled to add gains. WTI gained on the back of a lower than expected build in US crude oil inventories along with the third week in a row of declines in Cushing inventories. That said the overall oil fundamentals remain bearish with crude oil stocks still at all-time record highs. In addition there is no sign that global oil consumption is likely to go through a sudden growth spurt anytime soon.