Commodities

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.

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.

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.

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.

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.

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.

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.

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.

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.