- 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.
- Nat Gassteady ahead of EIA report
March 14 2013 10:32 AM
Nat Gas futures have continued to remain above the old upper range support level of $3.50/mmbtu for the longest period of time since the beginning of the winter heating season. In fact the spot contract breached the $3.66/mmbtu resistance level for the second time this week and this time it actually settled above. Currently $3.66/mmbtu is now the new support area with the next resistance at $3.76/mmbtu. Nat Gas futures have been in a steady upward trend since bottoming in mid- February. This is the strongest rally in Nat Gas prices since the fall of 2012.
- Brent Below $109 as Global Demand Wanes
March 14 2013 8:24 AM
Brent crude oil fell further on Thursday morning and traded at $108.68 at 9:28 GMT. The commodity faced pressure from waning global demand after the two largest consumers, the US and China, struggled with stalling growth. China's central bank worried investors by making comments about stabilizing inflation expectations. The remarks sparked concern nation's pro-growth policy could be abandoned sooner than expected. Original forecasts for a hefty demand from the nation could be reduced as a result.
- API report bullish for oil
March 13 2013 8:30 AM
The oil complex ended the day in negative territory with the exception of the spot WTI contract which ended the day with a modest gain. The main feature in the oil complex was the strong narrowing of the Brent/WTI spread. The April spread narrowed by about a $1/bbl today. On a continuation chart basis the spot spread is currently at the same level (about $17/bbl) that the spread was trading at just prior to the announcement of the Seaway bottleneck issue. Cushing stocks have been in a topping pattern and could be entering into a destocking pattern.
- OPEC Report Weighs on Brent Prices
March 13 2013 8:28 AM
Brent crude oil fell following the OPEC's monthly report which decreased growth forecasts in both the US and the eurozone. The commodity traded at $109.68 at 8:07 GMT on Wednesday morning following the report's release. The OPEC report not only decreased the growth expectations in both the US and the eurozone, but also forecast increasing US oil output. Even though the report predicted demand growth to remain steady, the data put pressure on Brent prices.
- Oil Explorers Beware: Hackers Are Eyeing What You Know
March 12 2013 10:58 AM
While most would think that the risks junior oil and gas companies are taking in exploring new frontiers as far away as the remote reaches of Africa are related to government instability and conflict, another risk they face is right at home and lies right beyond their network firewalls. Cyber security breaches are becoming more common place as the ranks of junior companies swell and take on new exploration venues with a great deal of energy. But at home their firewalls are not safe and hackers are being paid to find out what juicy exploration news is being discussed in their boardrooms.
- Brent Below $110 Ahead of OPEC Market Reports
March 12 2013 8:51 AM
Brent crude oil continued to slide on Tuesday morning, trading at $109.72 at 6:58 GMT following news of weak Chinese industrial data. China's National Bureau of Statistics released figures that showed a higher than expected consumer price index increase of 3.2 percent in February. Also troubling was annual industrial production growth data from January and February, which combined at 9.9 percent, was at its lowest since October 2012.
- Nat Gs slightly lower on profit taking selling
March 11 2013 11:44 AM
Nat Gas futures continue to trade above the $3.50/mmbtu breakout area (now support) suggesting that the market may be in the the early stages of a new leg to the upside. The market is currently going through a very light round of profit taking selling but the futures market still remains technically supported at the moment. If the market is able to get through the $3.66/mmbtu resistance level the next upside testing area would be around the $3.75/mmbtu level. From a technical perspective the Nat Gas futures market remains in an uptrend that has now been in play since bottoming in mid-February.
- RBOB higher for the third day in a row
March 11 2013 9:04 AM
The latest macroeconomic data out of China overnight shows that the main economic growth engine of the world is still growing but not at the pace many expected it would be growing by now. China's industrial production increased by 9.9% in the first two months of 2013 but it is the weakest start to a year since 2009. Retail sales increased by 12.3% but it was below the market consensus of around 13.8%. The new leadership now takes the reins with growth showing signs of slowing while inflation pressures are starting to build. As I have been indicating the pace of growth of the Chinese economy is not going to result in a growth spurt in oil consumption over and above what has already been projected anytime soon.
- Brent Dips Below $111 on Chinese Data
March 11 2013 8:58 AM
Brent crude oil fell below $111 on Monday morning and traded at $110.58 at 7:38 GMT after Chinese data shook investor confidence in the nation's recovery. Chinese inflation was at a 10-month high in February, sparking concern that policy changes are in order. Weak factory output and consumer spending compounded fears that the nation's growth and recovery was off track.
- Rally continues for second day
March 08 2013 1:58 PM
The post EIA inventory rally continues for a second day as the spot Nat Gas futures contract has remained above the key $3.50/mmbtu level for the second day in a row. On the premise that the market settles above the new support level of $3.50/mmbtu we may see another new leg to the upside in the short term. Again I will caution the futures market has struggled to remain above the $3.50/mmbtu since early November of last year having failed each time it has moved above it.
- Oil prices mixed
March 08 2013 9:25 AM
RBOB is higher for the second day in a row while the rest of the complex is now in negative territory. The oil complex is certainly not participating to the fullest extent along with the equity markets which have hit new all time highs in both Europe and the US. WTI has separated itself form Brent for the last several days as the Brent pipeline system resumes production sending the Brent/WTI spread down strongly and now trading below the range support level that has been in play since early February. The entire oil complex is in a technical bottoming pattern with some of the commodities in the complex ahead of others.
- Brent Rises on Chinese Data, But Gains Are Limited By Pipeline Restart
March 08 2013 9:21 AM
Brent crude oil traded at $111.11 on Friday morning at 9:27 GMT after better than expected Chinese data; but an increase in North Sea supply capped gains. According to CNBC, although Chinese oil imports fell last month, data showed that the oil consuming giant's exports increased by 20 percent in February, beating expectations and fueling speculation that the nation will keep oil demand high in 2013. The decrease in oil imports was attributed to lower demand during the Lunar New Year break.
- Asia to Drive Oil Prices in the Future
March 07 2013 8:56 AM
Brent crude oil traded at $110.96 at 8:55 GMT on Thursday morning as investors waited for the European Central Bank meeting to come to a close. The commodity has suffered massive losses from its $119 high earlier in the year as global economic data began to paint a troubling picture of future demand for oil.
- What's the Deal with Steel?
March 07 2013 8:52 AM
Is steel a steal? If prices for the metal really are at a near-term bottom, then now might be a good time to consider adding some cold, hard steel to your portfolio. Longbow Research showed an interest in the sector on Wednesday and initiated coverage on four names in the steel space and upgraded another. If you’re into that sort of thing, there are plenty of articles that will take you through the fundamentals. Basically, if you’re looking for companies with a lot of debt, less than impressive margins and P/E’s so high that you scratch your head and ask why, you’re in the right place.
- Nat Gas futures hovering below $3.50 level
March 06 2013 2:42 PM
Currently Nat Gas futures are struggling to stay above the key technical breakout level of $3.50/mmbtu. As of this writing the futures price is now marginally below the $3.50 level and acting much as it did during the breakout in the second half of January. The way the market is trading and even if we do get a settlement above the $3.50/mmbtu level I am moving my view back to neutral until the market sorts out which way it truly wants to head. This week's inventory repot will be bullish but we are simply running out of winter and quickly approaching the lower demand shoulder season.
- Peak Oil Is Almost Here and There's No Magic To Counter It: Interview with Dave Summers
March 06 2013 1:11 PM
This where we stand, and it's a fairly bleak view: Peak oil is almost here, and nothing new (with the possible but unlikely exception of Iraq) is coming online anytime soon and while the clock is ticking - forward movement on developing renewable energy resources has been sadly inadequate. In the meantime, the idea that shale reservoirs will lead the US to energy independence will soon enough be recognized as unrealistic hype. There are no easy solutions, no viable quick fixes, and no magic fluids. Yet the future isn't all doom and gloom – certain energy technologies do show promise. We had a chance to speak with well known energy expert Dave Summers where we cut through the media noise and take a realistic look at what our energy future holds.
- Brent Gains Momentum on US Optimism
March 06 2013 8:59 AM
Positivity about the US economy helped support Brent prices on Wednesday morning and the renewed optimistic sentiment drove prices to $111.38 at 10:00 GMT. The Dow Jones industrial average reached a record closing high on Tuesday after the US economy showed signs of strength. The sudden increase was attributed to data that showed the US service sector quickened at a rate unseen since last year. The surge in equity markets lent support to Brent as investors gained confidence that the US economy was picking up despite uncertainty over the recent “sequester”.