- Oil prices mixed ahead of EIA inventory report
March 27 2013 9:15 AM
After three strong up days the spot WTI contract is on the defensive this morning ahead of today's EIA oil inventory report. WTI is now in a new higher technical trading range with $94.50 the support area and $97 the current resistance level. Last night's API inventory report showed a much larger than expected build in crude oil stocks in the US which is currently keeping a short term cap on prices until the more widely followed EIA report is issued later this morning.
- Brent Nears $109 on US Economic Data
March 27 2013 9:09 AM
Robust US economic data sent Brent crude oil prices upward, but conflicting data and uncertainty in the eurozone mitigated gains. The commodity traded at 108.94 at 8:02 GMT on Wednesday morning as the demand outlook began to brighten. Reuters, reported that US home prices had their biggest yearly gain in over six years in January, which fueled speculation that the number one oil consumer picked up speed early in the first quarter of 2013.
- OIl firm across the board
March 26 2013 9:59 AM
The oil complex was able to hold onto gains even as the Cyprus relief rally the sent most risk asset market higher early in the session did not last very long. Equities and many risk asset markets ended Monday's session in negative territory as market participants once again started to be concerned that the conditions of the Cyprus deal could be the new standard for future bailout deals in Europe. The macroeconomic front was mostly quiet yesterday with traders and investors moving their focus slowly away from Cyprus and toward the value drivers that have been in play… especially the state of the global economy.
- Brent Steady Above $108 As Relief From Cyprus Deal Fades
March 26 2013 7:57 AM
Brent crude oil traded steadily at $108.12 at 7:12 GMT on Tuesday morning after the Cyprus bailout deal averted an immediate financial crisis, but caused uncertainty about its potential to set a precedent for future banking restructures. The last minute agreement between Cypriot officials and the EU involves a large scale reorganization of Cyprus' banks in exchange for a 13 billion euro rescue fund.
- Cyprus likely to impact prices this week
March 25 2013 8:14 AM
WTI was once again the strongest oil commodity in the complex on Friday with the Brent/WTI spread narrowing to the lowest level since July of 2012 based on the spot continuation chart. The combination of crude oil production running at normal to even above normal levels in the North Sea and Cushing crude oil stocks continuing in a destocking pattern have been the main reasons why the spread has narrowed for the last six weeks in a row.
- Brent Gains on Cyprus Deal
March 25 2013 8:05 AM
Brent crude oil began the week with gains and traded at $108.27 at 10:15 GMT on Monday morning. The commodity found support after eurozone leaders reached a last minute deal for Cyprus' bailout and averted a financial meltdown and possible eurozone exit.
- As Cyprus Collapses, It's a Race to the Mediterranean Gas Finish Line
March 22 2013 12:52 PM
Cyprus is preparing for total financial collapse as the European Central Bank turns its back on the island after its parliament rejected a scheme to make Cypriot citizens pay a levy on savings deposits in return for a share in potential gas futures to fund a bailout. On Wednesday, the Greek-Cypriot government voted against asking its citizens to bank on the future of gas exports by paying a 3-15% levy on bank deposits in return for a stake in potential gas sales. The scheme would have partly funded a $13 billion EU bailout.
- Refiners on East, Gulf Coasts Scaling Back Oil Imports
March 22 2013 10:25 AM
The ongoing slide in U.S. crude oil imports, which this year are expected to fall to the lowest levels since 1996, primarily reflects reduced shipments to refiners along the East Coast and Gulf of Mexico, the Energy Information Administration said.
- Oil prices firm
March 22 2013 8:30 AM
Oil lost its bid on Thursday after negative energy sensitive manufacturing data from Europe offset the marginally positive gain in the manufacturing index from China. Even Germany... the main growth engine in Europe dropped into the contraction mode with its PMI falling below the 50 threshold. Europe seems to be falling deeper into recession while the US continues to grow... but only slowly. The PMI data released yesterday for the US increased marginally.
- Eurozone Breakup Woes Weigh on Brent
March 22 2013 8:24 AM
Brent crude oil headed for a second week of losses on Friday as it traded at $107.56 at 7:00 GMT. The commodity has been under pressure ever since the European Union announced the controversial terms for Cyprus' bailout.
- Oil lower on weak PMI data out of Europe
March 21 2013 10:17 AM
The oil complex gained ground across the board on Wednesday on a combination of a supportive weekly oil inventory snapshot along with a mild up move in equities ( and lower US dollar) supported by the US Central Bank FOMC concluding their monthly meeting with no change in their ultra accommodative monetary policy for the near future. Both the external price drivers as well as the fundamentals supported yesterday's move to the upside. Overnight oil prices are drifting lower even as China's manufacturing sector continued to expand. However, the flash PMI data for the euro zone declined again for the month of March while Germany's manufacturing index surprisingly dropped below the expansion threshold level and into to the contraction zone.
- Brent Steady On Chinese PMI Data
March 21 2013 8:11 AM
Brent crude oil traded steadily at $108.55 at 6:55 GMT on Thursday morning after positive data from China offset recent concerns about the state of Cyprus' financial sector. Chinese manufacturing data contributed to speculation about a better global demand outlook and propped up Brent prices. According to CNBC, the HSBC Purchasing Managers' Index for March was 51.7, up from 50.4 in February.
- U.S. Oil Stocks Drop for First Time in 9 Weeks
March 20 2013 12:02 PM
U.S. commercial crude oil inventories fell for the first time in nine weeks, though supplies remain "well-above the upper limit of the average range" for this time of year, according to the Energy Information Administration. Nationwide crude supplies, excluding the Strategic Petroleum Reserve, totaled 382.7 million barrels during the week ended March 15, down 0.3% from the previous week, the administration said March 20 in its Weekly Petroleum Status Report.
- Brent Gains Modestly on Optimism About a Cyprus Deal
March 20 2013 8:16 AM
Brent crude oil gained modestly on Wednesday morning as investors remained hopeful that the US Federal Reserve would continue its stimulus plan and European Union leaders would reach a deal with Cyprus regarding the conditions of its bailout. The commodity traded at $108.07 at 10:40 GMT on Wednesday morning.
- Brent Below $109 Ahead of Cypriot Vote
March 19 2013 8:33 AM
Brent crude oil traded steadily below $109 as Cypriot leaders prepared to meet and discuss the controversial terms of their forthcoming bailout. The commodity traded at $108.91 at 11:46 GMT on Tuesday morning after eurozone leaders agreed to give lawmakers in Cyprus more control over the implementation of the levy.
- Cyprus sell-off hits Sunday night trading
March 18 2013 8:38 AM
In what I have been viewing as the oil complex starting to put in a technical bottom the spot WTI contract has now increased for the second week in a row. Support from the external price drivers (currencies & equities) as well as a surprisingly large 1.5 million barrel draw from Cushing crude oil inventories this week were some of the highlights that are continuing to mitigate a collapse in oil prices. Even with a Cyprus sell-off underway as of this writing oil is currently off only 0.6 percent. The spot WTI contract has been moving higher for the last week or so since bottoming just below the $90/bbl level. The spot Brent contract has been trading in more of a sideways trading range over the last week but it is also showing signs of trying to form a technical bottom. News that the North Sea Oseberg field experienced a power outage and a gas leak provided fundamental support for Brent. With the North Sea running at normal production levels this new unscheduled interruption is now something to watch closely.
- Nat Gas futures starting the week higher
March 18 2013 8:35 AM
The Nat Gas market blew through two resistance areas last week after yet another bullish weekly EIA inventory report. Colder than normal temperatures have continued to result in an atypical high level of Nat Gas heating related demand. With colder than normal temperatures forecast for the eastern two-thirds of the US through the end of March there is still going to be atypical net withdrawals from inventory through the aforementioned time period. This is going to result in the deficit versus last year continuing to grow through March while the surplus versus the five year average will continue to narrow (see EIA projections for winter ending inventory levels).
- Brent Falls Following Cyprus Deal
March 18 2013 8:32 AM
Brent crude oil slid lower on Monday morning following news that eurozone leaders have agreed to lend money to Cyrus if the country imposes a levy on banks to help fund the rescue package. The commodity traded at $108.33 at 10:33 GMT on Monday as the nation's government prepared to vote on the law. The unusual terms of the bailout have caused many to worry that levy could become a precedent for future government funding needs. Investors pulled their money from surrounding eurozone countries in fear that their accounts could receive the same treatment.
- Brent Gains on US Jobs Data
March 15 2013 7:55 AM
Brent crude oil ticked up on Friday morning and traded at 109.28 after data from the US pointed to a better global demand outlook and the threat of supply interruption in the Middle East lent support to the commodity. The US released strong jobs data which added to mounting evidence that the nation was well on its way to a steady recovery. Unemployment benefit claims in the US dropped for the third week in a row, a sure sign that the economy was on the mend.
- OIl prices drifting lower
March 14 2013 10:41 AM
WTI was the only commodity in the oil complex that was able to hold onto to a small gain on Wednesday. However, overnight WTI has given back yesterday's small gain. Once again the main feature in the oil market was another large narrowing move of the Brent/WTI spread. The push lower came after the EIA showed a surprisingly large 1.5 million draw in Cushing inventories even as refinery utilization rates in PADD 2 declined by 2.7 percent as the spring refinery maintenance season gets underway. In fact over the last two weeks refinery run rates in PADD 2 have declined by 8.3 percent or a decline in crude oil inputs by about 325,000 bpd. Oil is moving out of the region in spite of the declining demand for crude oil.