- Nat Gas prices gaining ground
April 15 2013 9:39 AM
Most risk asset market are starting the week in negative territory after China's latest GDP number for the first quarter came in at 7.7 percent or 0.2 percent below the fourth quarter level. The market was expecting an 8 percent growth rate. China is the main global economic and commodity growth engine of the world. With China looking like it is also entering a slowing pattern demand for energy and most other major commodity markets is likely to falter and thus act as a downside catalyst for prices. With the rest of the world in a mediocre economic pattern falling oil and commodity prices could be a strong positive for the global economy.
- Brent Hits Nine Month Low on Chinese Data
April 15 2013 9:35 AM
Commodities started out the week on a low note after tumbling on Friday in response to weak data from some of the world's largest economies. Brent crude oil hit a new nine month low on Monday morning and traded at $101.46 at 7:12 GMT.
- Oil remains on the defensive
April 12 2013 8:55 AM
With all three forecasting agencies (IEA, EIA and OPEC) painting a weakening picture for global oil demand growth for 2013 coupled with a disappointing weekly oil inventory snapshot this week the oil complex has been moving lower for the last several days. This month all three agencies reduced their growth forecast for oil. This is the third month in a row that the IEA lowered its projection. This has resulted in a bearish view starting to permeate around the market and a realization that slow economic growth in some countries like the US is not enough to result in a strong growth spurt in oil consumption.
- IEA Follows Suit and Lowers Oil Consumption Growth
April 12 2013 8:47 AM
Brent crude oil neared an eight month low on Friday morning as investors worried about global demand growth. The commodity traded at $104.19 at 7:09 GMT and according to CNBC, some analysts are expecting the commodity to continue sliding as low as $103.51.
- Brent Falls After OPEC Cuts Demand Expectations
April 11 2013 8:44 AM
Brent crude oil slid to $105.51 at 6:36 GMT on Thursday morning amid growing concern about global demand caused by higher inventories and reduced global demand forecasts. Following the US Energy Information Administration's revised, lower 2013 oil demand projection earlier in the week, the Organization of Petroleum Exporting Countries followed suit and trimmed its forecast for oil demand growth as well.
- OPEC Again Cuts 2013 Oil Demand Forecast
April 10 2013 1:12 PM
In its oil market report, OPEC cited renewed concern about the euro zone and Japanese economies.
- Oil prices lower ahead of EIA inventory report
April 10 2013 8:53 AM
After a few days of short covering the oil complex is starting today's session on the defensive after a bearish API fundamental snapshot along with a weak demand projection by the EIA in their monthly Short Term Energy Outlook report. Oil prices are drifting lower ahead of this morning's EIA oil inventory report. I still view the movement in the oil complex on Monday and Tuesday as mostly driven by short covering after last week's strong declines. The fundamentals are becoming more bearish but the technicals are improving slightly and once again are starting to show the early signs of forming a bottom. All of the commodities in the complex are in a trading range with WTI and Brent currently near the upper end of the range while refined products are in about the middle of the range. The external oil price drivers… equities and the US dollar were both supportive for oil on Tuesday.
- Brent Reaches Above $106 on Chinese Data
April 10 2013 8:43 AM
Brent crude oil traded steadily at $106.08 at 9:21 GMT on Wednesday morning after positive Chinese data gave markets a boost. The commodity has been under pressure as many of the world's largest consumers weather financial problems and attempt to regain momentum after recessions. After several months of disappointing data, China released import and export data that rallied the markets and renewed optimism that the second largest oil consuming nation's recovery was back on track
- Is Tunisia the New Hot Spot for Energy Investors? Interview with John Nelson
April 09 2013 9:42 AM
Until recently Tunisia was considered to be a minor league and relatively underexplored venue in Africa's rapidly expanding oil & gas scene. This situation has quickly changed with new bid rounds and forced relinquishments creating an opportunity for new companies to come in. Major American E & P companies like Shell have jumped at the opportunity to acquire ground that had been dominated for decades with little to no work conducted, mostly by European State oil & gas companies in this former French protectorate. For the first time major spending has been committed to test Tunisian basins which are arguably equally prolific as those in neighbouring environments with more work performed, such as Libya.
- Oil prices continue higher on light short covering
April 09 2013 9:15 AM
Oil prices spent all of Monday's trading session in positive territory mostly as a result of a mild short covering rally after last week's strong losses. The rally in oil prices was also supported by activity by the MEND group in Nigeria who supposedly killed several policemen in the oil rich Niger Delta region. Another failed meeting between Iran and the West over the weekend was marginally bullish for oil prices. With the west and Iran yet to move closer to an agreement… or even schedule another round of talks… strongly suggests that the existing sanctions on Iran will not be eased anytime soon with additional sanctions now a possibility keeping oil off of the market. In addition to the above the evolving situation with North Korea is also modestly impacting the overall market sentiment.
- Brent Trades at $105 as Global Demand Wanes
April 09 2013 9:05 AM
Brent crude oil dipped below $105.00 on Monday after choppy trading brought prices down. The commodity reached above $105.00 on Tuesday morning following data that showed China's inflation eased in March and traded at $105.18 at 6:23 GMT. Oil prices have been under heavy pressure this year as slow growth in the world's top consumers have reduced demand and raised oil inventories.
- Nat Gas holding Friday's gains
April 08 2013 1:27 PM
The Nat Gas futures market is holding the gains from last Friday's rally and actually adding to them. The spot contract has been hovering either side of the new resistance area of $4.16/mmbtu with no decisive move much above it as of this writing. The cash market is following the futures contract with most cash prices higher so far today. The Georgia Power coal plant shut down has been the main catalyst for the rally since late Thursday evening. In fact even with an upside miss in last week's EIA inventory report the May futures contract was settling into a lower trading range until the coal shutdown hit the media airwaves. It was this event that quickly pushed prices back above the $4/mmbtu level with the market settling well above this resistance level on Friday.
- Oil prices higher on short covering
April 08 2013 8:42 AM
The oil complex is starting the week in positive territory after a week of strong losses. In fact WTI experienced the largest weekly loss in six months while the Brent/WTI spread narrowed to the lowest level since June of last year. It is much too early to say if the oil complex is in the early stages of a bottoming pattern or just a mild short covering rally.
- Brent Finds Support From BoJ's Stimulus Plan
April 08 2013 8:30 AM
Brent crude oil gained modestly on Monday, ticking up to $105.26 at 9:22 GMT. The commodity has been under pressure recently as slowing global growth and decreased demand has caused inventories to rise and put pressure on Brent prices. Data from the US showed that American employers fell short of expectations and added just 88,000 jobs rather than the anticipated 200,000. The figures confirmed that hiring rates were at their slowest pace in nine months and underscored worries that the number one oil consuming nation was still struggling to recover.
- Is McDonald’s Still a Safe Investment?
April 05 2013 9:56 AM
With shares of McDonald’s Corp. (NYSE:MCD) trading at around $100.63, is MCD an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
- Oil prices drifting lower
April 05 2013 9:02 AM
The risk off trading pattern has been the dominant pattern for most of the week (so far). Everything in the oil complex is lower for the week with WTI leading the way down resulting in a modest short covering based widening of the May Brent/WTI spread. The Brent/WTI spread is mostly driven by the potential for inventories to temporarily increase in Cushing as a result of the Pegasus pipeline shutdown. The macroeconomic data has been mostly negative this week with the main event… US nonfarm payroll data… set to hit the media airwaves at 8:30 AM EST today.
- Brent Tumbles on US Jobs Data
April 05 2013 8:54 AM
Brent crude oil continued its tumble on Friday morning and fell to 106.40 at 7:23 GMT. The commodity hit a five month low on Thursday after US jobless data fueled fear that the oil consuming giant's economy was not recovering as quickly as originally expected.
- Gas Starts Flowing from Israel's Levant Basin, What Now?
April 04 2013 9:07 AM
The first gas has started flowing from Israel's supergiant Tamar gasfield in the Levant Basin. Where it will go will redraw the Mediterranean energy map and the geopolitics that goes along with it. The Tamar field stakeholders announced on 30 March that the gas had started flowing, raising the value of Texas-based Noble Energy Inc. (NYSE: NBL), which holds a 36% stake, and Israel's two Delek Group subsidiaries, which each hold a 15.6% stake.
- Oil prices mixed
April 04 2013 8:41 AM
Yesterday was definitely a risk off trading session with most risk assets getting hit with a strong round of selling… including the oil complex. The weekly EIA oil inventory report was mixed with a larger than expected build in crude oil but with offsetting draws in refined products (see below for a more detailed discussion on this week's report). However, the macroeconomic data hitting the media airwaves was mostly biased to the bearish side setting off a round of selling in equities adding to the negative sentiment in the oil complex and broader commodity markets.
- Brent Under Pressure From Poor Global Demand
April 04 2013 8:34 AM
Brent crude oil tumbled on Wednesday after poor demand outlook and rising stockpiles put pressure on prices. The commodity steadied at $107.16 on Thursday morning at 11:00 GMT after falling more than three percent on Wednesday. Jobs data from the US that indicated the nation's recovery wasn't as strong as some had thought decreased the global demand outlook and sent Brent prices downward. The commodity plunged even further after reports showed that US oil inventories were at their highest level since 1990.