- Brent Bearish As Saudi Output Rises
February 20 2013 9:31 AM
Brent traded below $118 on Wednesday as Saudi Arabia planned to produce more crude in the second quarter of 2013. The commodity traded steadily at $117.31 at 8:10 GMT on Wednesday morning. According to CNBC, an oil industry source said that Saudi Arabia plans to fulfill rising Chinese oil demand by increasing its output in the second quarter, but the exact volume of the increase has not been confirmed. An increase on the supply side drove prices down, but is also expected to drive economic recovery within the global market.
- Nat Gas higher on short covering
February 19 2013 2:31 PM
For the third week in a row Nat Gas futures are staging a short covering rally ahead of the weekly Nat Gas inventory report. The market is also getting an assist from the round of cold temperatures experienced so far this week along major parts of the country. Whether or not the rally is going to hold through the inventory report is a big question since this week's inventory withdrawal will be below both last year and the five year average and thus a bearish report.
- Brent Wavers Ahead of Italian Elections
February 19 2013 9:40 AM
Brent crude oil traded evenly above $117 on Tuesday as American markets reopened after a holiday. The commodity traded at $117.30 as markets looked ahead to Italian elections in the eurozone. Without much news, the commodity wavered and reflected doubts about the eurozone's stability in the face of political instability. Italian elections are set for next week, and investors are becoming nervous as former Prime Minister Silvio Berlusconi has been gaining popularity.
- The End of the Shale Era: Big Shift in Junior Oil Exploration – Interview with Chris Cooper
February 19 2013 9:33 AM
The oil and gas game can be a tricky one for junior companies, but if played right the pay-off can be massive. At a time when juniors are risking a lot in volatile venues in the Middle East and Africa, Canada's Aroway Energy (ARW) is planting its feet firmly in homeland soil and in conventional plays.
- Oil markets quiet on US Holiday and start of IP week in London
February 18 2013 10:10 AM
Today will be a quiet day in the US with all of the exchanges closed for the Presidents Day holiday. Only electronic trading will be open in the US. In addition IP week gets underway in London today which should contribute to today being an even quieter and lower liquidity day than normal. The spot WTI contract is starting the week in negative territory while everything else in the oil complex is showing a small gain for the session so far. Asia is getting back to normal as China returns from its week long Lunar New Year Holiday.
- Brent Rises After Unsuccessful Talks in Iran
February 18 2013 10:07 AM
Brent crude oil began the week trading steadily below $118 as geopolitical tension and an overall positive sentiment regarding the global economy supported prices. The commodity traded at $117.89 at 8:45 GMT on Monday morning. Data last week put pressure on Brent prices after eurozone nations posted large drops in GDP, indicating the region still had a long way to go toward recovery.
- CME Announces Open Interest Record in WTI Futures
February 15 2013 10:48 AM
CME Group, the world's leading and most diverse derivatives marketplace, announced it reached a record in open interest for its global benchmark NYMEX Light Sweet Crude Oil (WTI) futures contracts yesterday, February 13, 2013. Open Interest for NYMEX WTI reached 1,665,014 contracts, compared to 1,664,400 on May 11, 2011, the last record for this contract.
- Brent Slips on Eurozone GDP
February 15 2013 9:29 AM
Brent crude oil dipped to $117.53 at 11:30 GMT on Friday after weak eurozone data signaled that the region's economy had a long road to recovery ahead. GDP data from the euro zone showed an economic contraction of 2.3 percent in the fourth quarter of 2012. The bloc's economy shrank at its quickest pace since the height of the global economic crisis in late 2009.
- Nat Gas prices lower on bearish inventory report
February 14 2013 2:56 PM
With precious little time left to the current winter heating season the bulls got another disappointment as the EIA weekly inventory report was bearish versus the market consensus and neutral at best versus the normal five year average net withdrawal for the same week (see below for a more detailed discussion). The spot Nat Gas futures price has breached the lower end ($3.20/mmbtu) of the trading range that has been in play since November. It is still too early in the session to conclude that this will be a more lasting move into a new, lower trading range or rather the market being just in a mode of the weak longs moving to the sidelines.
- Brent Steady as Supply Woes Balance Demand Worries
February 14 2013 9:07 AM
Brent crude oil traded steadily at $118.13 at 9:43 GMT on Thursday morning following news that the US and Iran failed to reach an agreement in talks about Iran's nuclear program. The commodity has been gaining momentum as the world's largest economies show signs of improvement and support speculation that the global economy is on the mend. However, data from the eurozone on Thursday dampened this sentiment as GDP figures for the fourth quarter of 2012 showed that Germany and France both contracted more than expected.
- Beijing's Pollution Alarms Neighbors
February 14 2013 8:35 AM
The good news for the Chinese leadership is that their fiscal policies have paid off, producing both the world's second largest economy and the globe's leading creditor nation in less than a generation. The less good news is that the country's hell-bent drive towards industrialization has brought in its train a host of collateral problems, not the least of which is pollution. Last month Beijing's air pollution soared past levels considered hazardous by the World Health Organization.
- Oil prices higher ahead of weekly inventory report
February 13 2013 9:23 AM
The oil complex is starting the day with small gains ahead of this morning's EIA oil inventory report as the market digests the recently released IEA Monthly Oil report (see below for more details). The EIA and OPEC both increased their projection for global oil demand growth versus last month's reports with the IEA surprising the market by decreasing their forecast versus last month. It shows a bit of disagreement as to the extent of what many are suggesting is a turning of the corner to a faster growth pattern for the global economy. The IEA report is mildly bearish for oil while the EIA and OPEC reports were mildly bullish. Thus on average I would have to say a neutral round for the monthly projections. Next on the docket is the weekly oil inventory report this morning.
- Nat Gas prices closer to testing lower end of trading range
February 13 2013 9:20 AM
Nothing has changed in my view... the spot Nat Gas contract has a higher probability of testing the lower end ($3.20/mmbtu) of the trading range before making any major move to the upside. The weather is now currently in a pretty decent warm-up along the high demand east coast and the latest NOAA six to ten day and eight to fourteen day forecasts are certainly not overly bullish or suggestive that there is going to be a major increase in heating related Nat Gas demand during the second half of February. If the rest of the heating season does not get hit with a late season cold spell not only will the spot futures contract breach the lower end of the trading range but the probability of it testing the psychological $3/mmbtu level will increase quickly.
- Brent Strong on OPEC Report
February 13 2013 8:24 AM
Brent crude oil traded steadily below $119 on Wednesday morning after the US Energy Information Administration and the Organization of the Petroleum Exporting Countries both increased their outlook for oil consumption based on recent signs of recovery within the global market.
- Arctic draws oil money with stability, shallow seas
February 12 2013 9:33 AM
It may not be this year, but Royal Dutch/Shell and other oil companies will be back to drill in northern Alaska's seas, drawn by political stability and shallow waters. Weary of Middle Eastern turbulence, alarmed by Argentina's nationalization of Spanish group Repsol's assets, and shocked by the Islamist siege of an Algerian gas plant, companies are looking to unexploited parts of the Arctic.
- Oil prices steady
February 12 2013 9:15 AM
Oil prices are starting the day modestly higher after a downward move for most of the complex on Monday... except WTI. The main feature of the complex on Monday was the modest round of profit taking selling of the March Brent/WTI spread which narrowed around $2/bbl but is holding the support level of about $21/bbl. The spread is still well above the levels it was at just prior to the announcement of the bottleneck on the Seaway pipeline. The spread is still in a short term uptrend and yesterday's sell-off in the spread can still only be categorized as a downside correction as technical support has held (for now) and the fundamentals remain bullish for the spread. If the $21/bbl level is breached the next support level is around the $19.50/bbl level.
- Brent Dips on Eurozone Concern
February 12 2013 9:11 AM
Brent crude oil lost some of its momentum on Tuesday morning after eurozone concerns moved to the forefront and overshadowed positive growth in China. The commodity traded at 118.08 at 7:30 GMT on Tuesday.
- Can Leak Detection End the Pipeline Impasse? Interview with Adrian Banica
February 11 2013 9:38 AM
Pipelines used to be things that were just built without blinking. It is said that there are enough pipelines now in the US to encircle the Earth 25 times with enough left over to also tie a bow around it. Today, getting a pipeline built is not so easy - there are too many environmental concerns and the industry has become highly polarized. But here's one thing that could bring everyone together: pipeline safety technology. And it's something we all want, especially for those who live along the thousands of miles of aging pipeline routes that carry hazardous liquids.
- Nat Gas prices steady
February 08 2013 11:51 AM
The decline in Nat Gas futures prices yesterday were tempered a bit by the cold nearby temperatures, a major storm along the northeast and a short term forecast from NOAA that is more supportive for additional Nat Gas related heating demand than the forecasts from earlier in the week. That all said the spot Nat Gas futures prices is still solidly trading within the $3.20 to $3.50/mmbtu trading range that has been in play since early November of 2012.
- Brent Poised For Another Week of Gains
February 08 2013 11:41 AM
Brent crude oil reached toward $118 on Friday morning and set itself up for a fourth straight week of gains. The commodity has found strength in economic data from some of the top oil consuming nations whose economies have been picking up. Brent traded at $117.76 at 10:45 GMT on Friday morning after Chinese data showed that exports grew by 25 percent and shattered analysts' 17 percent prediction. The nation's imports also produced impressive figures, increasing by 29 percent. China's better than expected data encouraged speculation that the global economy is on the mend.