- 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.
- Oil prices lower ahead of EIA inventory report
April 03 2013 9:16 AM
Oil prices are drifting lower ahead of this morning's EIA oil inventory report and after the API reported a much larger than expected build in crude oil but partially offset by a larger than expected draw in gasoline stocks. At the moment the market is mostly focused on the potential of the surplus of crude oil in the US starting to once again increase. In addition the market is still digesting the impact the shutdown the Pegasus pipeline may have on the supply and demand balances in the mid-west and US Gulf coast as well as in Canada.
- Credit Suisse Lowers Price Targets on Commodities, Prices Sink
April 03 2013 9:11 AM
Commodity markets traded lower in early trade Wednesday following a new note from Credit Suisse highlighting that they expect weakness in commodity markets over the next few years. The analysts at Credit Suisse slashed their price targets for nearly every commodity for 2013 and 2014 on both lower demand forecasts but more so due to higher supply forecasts.
- Weak Manufacturing Data Across the Globe Pressures Brent Prices
April 03 2013 9:07 AM
Brent crude oil fell under pressure on Wednesday morning after weak data and growing inventories worried investors. The commodity fell for a second day and traded at $110.19 at 9:00 GMT.
- Brent Crude Oil May Contract - Forecast by Daytradeideas.com
April 03 2013 8:29 AM
Brent Crude formed a bullish inverse head & shoulders as hoped & we made it all the way to our measured target of 111.20/50. We suggested to exit all longs here & try shorts with a stop above 111.95. The market has now topped at 111.79 so this has all worked perfectly for the second time.
- WTI Crude Oil May Contract - Forecast for 04/03 by Daytradeideas.com
April 03 2013 8:25 AM
WTI Crude hit strong 6 month trend line resistance at 97.35 to fall back very quickly once again. The market could have topped out now after the 1 month rally and we look for 96.39 today. Below here we have good support at 95.85 which held yesterday for the second day & could again today. However any longs here need a stop below 95.50 for continued losses down towards 94.82/65. We should see a good bounce from here so worth exiting shorts & trying longs with a stop below 94.35.
- Oil prices mostly lower
April 02 2013 8:51 AM
A mixed performance in the oil complex to start the week with Brent, Gasoil and HO all adding value while WTI and RBOB declined on the day. Mixed economic data along with a mid-west to US Gulf Coast pipeline flow interruption were the main price drivers in a light activity session as Europe was still closed on Monday. Cyprus is still evolving while the latest PMI data out of the US disappointed and China's factory activity… although still growing… also disappointed compared to the market expectations. There is a full schedule of macroeconomic data this week culminating in the ever important US nonfarm payroll report on Friday.
- Brent Ticks Up on Saudi Expectations for Demand Growth
April 02 2013 8:10 AM
Brent crude oil traded at 110.80 at 8:55 GMT on Tuesday morning after chopping trading on Monday pushed the commodity past $111. Reuters reported that Saudi Arabian oil minister Ali Al-Naimi made statements on Monday indicating that demand for the country's crude oil is likely to rise over the next couple of months due to an expected recovery in the Asian market.
- Exxon Pipeline Leak Widens Brent-WTI Gap
April 01 2013 3:23 PM
Exxon Mobil (NYSE:XOM) has itself in another sticky situation: for the second time this month a ruptured pipeline has resulted in a significant spill. This time, damage wasn’t relegated to the wilderness, as crude oil was found flowing through the streets and pooling at the curbs of Mayflower, Arkansas.
- Nat Gas futures lower on upcoming warming trend
April 01 2013 2:42 PM
The latest NOAA forecasts that hit the airwaves over the weekend are presenting a noticeably different picture than those issued just last week. The latest temperature forecasts as now suggesting that spring may finally be arriving. Both the six to ten day and eight to fourteen day forecasts are projecting above normal temperatures across most of the US with very warm temperatures projected for the eastern third of the country in the 8 to 14 day forecast.