By Brian Baskin
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Crude futures added to last week's rally Monday as the market opened for the first time since Friday's report of the biggest increase in U.S. employment in three years.
Light, sweet crude for May delivery traded $1, or 1.2%, higher at $85.87 a barrel on the New York Mercantile Exchange, with the day's intraday peak of $85.97 the highest since October 2008. Brent crude on the ICE futures exchange traded 93 cents, or 1.1%, higher at $84.94 a barrel.
The latest high represented a delayed reaction to Friday's report from the U.S. Labor Department of a 162,000 gain in nonfarm payrolls in March. Most markets, including oil, were closed that day for Good Friday, meaning the current trading day is the first chance for investors to react to the data.
Although the number of new jobs came in below the economists' consensus forecast, any decline in unemployment is welcome news after months of improving economic conditions without job creation. Lower unemployment also helps demand for gasoline by increasing the number of commuters.
With the jobs picture finally appearing to improve, oil's recent gains may have more staying power. Prices have topped $83 a barrel several times this year, only to quickly fall back as investors worried that futures had risen faster than the gradual economic recovery warranted.
"You had a breakthrough...the economy is trying to mend itself and that caused the market to break through these resistance areas," said Tony Rosado, a broker with GA Global Markets. Oil at "$88 is just around the corner."
Oil prices had already risen 5.7% last week before the jobs figure came out, largely on signs that economic activity in Asia remains strong. Traders have largely tied their outlook--and $80 a barrel crude--to a rapid increase in demand in China and other developing economies, as the U.S. recovery has been slow to gain momentum.
Friday's jobs report likely doesn't change that dynamic, as U.S. demand is still expected to see anemic growth this year.
"This expected oil demand improvement during the second half of this year can be a powerful driving force regardless if it is actually realized or not," wrote Jim Ritterbusch, president of the trading advisory firm Ritterbusch and Assoc. in Galena, Ill.
Front-month May reformulated gasoline blendstock, or RBOB, recently traded 2.11 cents, or 0.9%, higher at $2.3448 a gallon. May heating oil traded 2.84 cents, or 1.3%, higher at $2.2451 a gallon.
-By Brian Baskin, Dow Jones Newswires; 212-416-2453;
brian.baskin@dowjones.com.
Showing posts with label CRUDE OIL NEWS. Show all posts
Showing posts with label CRUDE OIL NEWS. Show all posts
Monday, April 5, 2010
Thursday, March 11, 2010
UPDATE 8-Oil ends at 8-week high on gasoline inventory drop
* U.S. gasoline stocks show surprise drawdown
* Profit-taking wipes out some gains
* OPEC now thinks 2010 world demand will rise 880,000 bpd
* Coming up: Weekly jobless claims report on Thursday
(Recasts first paragraph)
By Rebekah Kebede
NEW YORK, March 10 (Reuters) - Oil prices settled at an eight-week high on Wednesday in choppy trading after a government report showed that gasoline stocks in the United States dropped unexpectedly.
U.S. crude for April delivery settled 60 cents higher at $82.09 per barrel, after reaching $83.03.
London ICE Brent for April settled at $80.48, up 57 cents.
"Today's EIA data certainly has a bullish undertone with both gasoline and distillates off much more than expected," said Chris Jarvis, senior analyst, Caprock Risk Management, Hampton Falls, New Hampshire.
"Given the fact that we are heading into the driving season, a drop in gasoline supplies will drive bullish sentiment. Couple that with the dollar starting to weaken again and equities rallying and we wouldn't be surprised to see crude oil break out of this $80 level and march towards the $90 level in the coming months."
Gasoline stocks in the world's largest energy market showed a surprise drop of 2.9 million barrels to 229 million barrels last week, the U.S. Energy Information Administration (EIA) reported. [EIA/S]
And U.S. commercial crude oil stockpiles rose 1.4 million barrels to 343 million barrels in the week to March 5 -- below the 1.9 million barrels rise that analysts had been expecting.
Distillate stocks, which include heating oil and diesel, fell by 2.2 million barrels, far more than the 900,000 barrel draw predicted by the market.
Wall Street stocks rose on Wednesday, lifted by bank and technology shares.[.N]
The U.S. dollar slipped against a basket of currencies. A weaker greenback typically supports oil prices as it makes dollar-denominated commodities such as oil less expensive for holders of other currencies. [USD/]
A report showing that China's imports of crude oil in February rose to the second highest on record on a daily basis was also supportive for oil prices. [ID:nTOE62808W]
OPEC SEES DEMAND RISING
Earlier, the Organization of the Petroleum Exporting Countries (OPEC) had given a mild boost to prices when it said it now thought the world would need 28.94 million barrels per day of its crude this year -- an increase of 190,000 bpd from its previous assessment. [ID:nLDE6291EF]
It said total world demand was likely to rise by 880,000 bpd in 2010, up from a previous estimate of 810,000 bpd.
OPEC meets next week in Vienna to discuss output and analysts expect it to keep targets unchanged. [ID:nLDE62715Z]
OPEC members have suggested prices around $70 to $80 are reasonable, and on Monday, Algeria said levels in the low $80s were fair. [ID:nLDE61P1NL]
The group's biggest producer, Saudi Arabia, will reduce crude supply in April to a major Asian buyer, but will keep full contracted volumes to others. [ID:nTOE62406V] (Additional reporting by Robert Gibbons, Gene Ramos, Eileen Moustakis in New York, Jo Winterbottom in London; Editing by Lisa Shumaker)
* Profit-taking wipes out some gains
* OPEC now thinks 2010 world demand will rise 880,000 bpd
* Coming up: Weekly jobless claims report on Thursday
(Recasts first paragraph)
By Rebekah Kebede
NEW YORK, March 10 (Reuters) - Oil prices settled at an eight-week high on Wednesday in choppy trading after a government report showed that gasoline stocks in the United States dropped unexpectedly.
U.S. crude for April delivery settled 60 cents higher at $82.09 per barrel, after reaching $83.03.
London ICE Brent for April settled at $80.48, up 57 cents.
"Today's EIA data certainly has a bullish undertone with both gasoline and distillates off much more than expected," said Chris Jarvis, senior analyst, Caprock Risk Management, Hampton Falls, New Hampshire.
"Given the fact that we are heading into the driving season, a drop in gasoline supplies will drive bullish sentiment. Couple that with the dollar starting to weaken again and equities rallying and we wouldn't be surprised to see crude oil break out of this $80 level and march towards the $90 level in the coming months."
Gasoline stocks in the world's largest energy market showed a surprise drop of 2.9 million barrels to 229 million barrels last week, the U.S. Energy Information Administration (EIA) reported. [EIA/S]
And U.S. commercial crude oil stockpiles rose 1.4 million barrels to 343 million barrels in the week to March 5 -- below the 1.9 million barrels rise that analysts had been expecting.
Distillate stocks, which include heating oil and diesel, fell by 2.2 million barrels, far more than the 900,000 barrel draw predicted by the market.
Wall Street stocks rose on Wednesday, lifted by bank and technology shares.[.N]
The U.S. dollar slipped against a basket of currencies. A weaker greenback typically supports oil prices as it makes dollar-denominated commodities such as oil less expensive for holders of other currencies. [USD/]
A report showing that China's imports of crude oil in February rose to the second highest on record on a daily basis was also supportive for oil prices. [ID:nTOE62808W]
OPEC SEES DEMAND RISING
Earlier, the Organization of the Petroleum Exporting Countries (OPEC) had given a mild boost to prices when it said it now thought the world would need 28.94 million barrels per day of its crude this year -- an increase of 190,000 bpd from its previous assessment. [ID:nLDE6291EF]
It said total world demand was likely to rise by 880,000 bpd in 2010, up from a previous estimate of 810,000 bpd.
OPEC meets next week in Vienna to discuss output and analysts expect it to keep targets unchanged. [ID:nLDE62715Z]
OPEC members have suggested prices around $70 to $80 are reasonable, and on Monday, Algeria said levels in the low $80s were fair. [ID:nLDE61P1NL]
The group's biggest producer, Saudi Arabia, will reduce crude supply in April to a major Asian buyer, but will keep full contracted volumes to others. [ID:nTOE62406V] (Additional reporting by Robert Gibbons, Gene Ramos, Eileen Moustakis in New York, Jo Winterbottom in London; Editing by Lisa Shumaker)
Wednesday, March 10, 2010
DJ OIL FUTURES: Nymex Crude Flat, Oil Inventory Jump Feared
NEW YORK, Mar 10, 2010 (Dow Jones Commodities News via Comtex) --
By Brian Baskin
Of DOW JONES NEWSWIRES
Crude futures were nearly unchanged Wednesday, avoiding adding to the previous day's losses due to strength in the gasoline market.
Light, sweet crude for April delivery recently traded 3 cents higher at $81.52 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 9 cents, or 0.1%, higher at $80 a barrel.
Oil prices are still trading near their 2010 peak, but are unlikely to press higher before the release of U.S. oil inventory data, due out at 10:30 a.m. EST from the Energy Information Administration. The American Petroleum Institute, an industry group, reported a 6.5-million-barrel increase in crude stockpiles on Tuesday, raising fears that weak demand will reinflate supplies over the next few months.
Futures have traded between $70 and $80 a barrel for most of the last five months largely on the expectation that rising demand would soon draw down inventories in the U.S., the world's biggest oil consumer. Recently inventories have leveled off at well above average levels, but promising economic data has lifted many commodity markets, including oil.
Analysts gave an average forecast for a 1.7-million-barrel increase in oil inventories, according to a Dow Jones survey.
"The inventory data hasn't been a driver of price lately ... (but) if we build again, I have to believe we'll get some kind of correction," said Tom Bentz, a broker and analyst with BNP Paribas Commodity Futures Inc.
The API also reported a 3.2-million-barrel drop in gasoline stockpiles, where the consensus forecast was for an increase of 100,000 barrels. That decline has given new lift to an already buoyant gasoline market, where traders are anticipating strong summer demand out of the U.S. With U.S. gasoline consumption representing about 10% of total world oil demand, gains in the fuel's futures contract often boost oil prices as well.
"The gasoline market remains on a roll ... and it appears that the bullish gasoline momentum of the past month still has some room to run," wrote Jim Ritterbusch, president of the trading advisory firm Ritterbusch and Assoc. in Galena, Ill.
Analysts are also expecting distillate stockpiles, including heating oil and diesel, to drop by 700,000 barrels, while the API reported a 2.8-million-barrel decline in the category.
Front-month April reformulated gasoline blendstock, or RBOB, recently traded 89 points, or 0.4%, higher at $2.2692 a gallon. April heating oil traded 52 points, or 0.3%, higher at $2.0950 a gallon.
China, with oil demand second only to the U.S., provided additional support to prices after reporting a 20% increase in crude imports in February.
-By Brian Baskin, Dow Jones Newswires; 212-416-2453; brian.baskin@dowjones.com.
(END) Dow Jones Newswires
03-10-10 0906ET
By Brian Baskin
Of DOW JONES NEWSWIRES
Crude futures were nearly unchanged Wednesday, avoiding adding to the previous day's losses due to strength in the gasoline market.
Light, sweet crude for April delivery recently traded 3 cents higher at $81.52 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 9 cents, or 0.1%, higher at $80 a barrel.
Oil prices are still trading near their 2010 peak, but are unlikely to press higher before the release of U.S. oil inventory data, due out at 10:30 a.m. EST from the Energy Information Administration. The American Petroleum Institute, an industry group, reported a 6.5-million-barrel increase in crude stockpiles on Tuesday, raising fears that weak demand will reinflate supplies over the next few months.
Futures have traded between $70 and $80 a barrel for most of the last five months largely on the expectation that rising demand would soon draw down inventories in the U.S., the world's biggest oil consumer. Recently inventories have leveled off at well above average levels, but promising economic data has lifted many commodity markets, including oil.
Analysts gave an average forecast for a 1.7-million-barrel increase in oil inventories, according to a Dow Jones survey.
"The inventory data hasn't been a driver of price lately ... (but) if we build again, I have to believe we'll get some kind of correction," said Tom Bentz, a broker and analyst with BNP Paribas Commodity Futures Inc.
The API also reported a 3.2-million-barrel drop in gasoline stockpiles, where the consensus forecast was for an increase of 100,000 barrels. That decline has given new lift to an already buoyant gasoline market, where traders are anticipating strong summer demand out of the U.S. With U.S. gasoline consumption representing about 10% of total world oil demand, gains in the fuel's futures contract often boost oil prices as well.
"The gasoline market remains on a roll ... and it appears that the bullish gasoline momentum of the past month still has some room to run," wrote Jim Ritterbusch, president of the trading advisory firm Ritterbusch and Assoc. in Galena, Ill.
Analysts are also expecting distillate stockpiles, including heating oil and diesel, to drop by 700,000 barrels, while the API reported a 2.8-million-barrel decline in the category.
Front-month April reformulated gasoline blendstock, or RBOB, recently traded 89 points, or 0.4%, higher at $2.2692 a gallon. April heating oil traded 52 points, or 0.3%, higher at $2.0950 a gallon.
China, with oil demand second only to the U.S., provided additional support to prices after reporting a 20% increase in crude imports in February.
-By Brian Baskin, Dow Jones Newswires; 212-416-2453; brian.baskin@dowjones.com.
(END) Dow Jones Newswires
03-10-10 0906ET
DJ OIL FUTURES: Crude Oil Trends Down On Stronger Dollar
DJ OIL FUTURES: Crude Oil Trends Down On Stronger Dollar
(Recasts top.)
By Edward Welsch
Of DOW JONES NEWSWIRES
Crude oil settled slightly lower as the stronger dollar
weighed on prices,though futures hovered near their highest
point in eight weeks, with the front-month contract holding
above $80 a barrel for the fifth day in a row.
Oil remained near the top of its recent trading range as
traders bet that seasonal factors would sustain prices, as
the return of spring usually means supply is reduced as
refineries temporarily shut down for maintenance and demand
for gasoline increases ahead of the summer driving season.
Analysts, however, warned there were few signs of real
recovery in oil demand, while supplies remained at their
highest levels in decades.
Light, sweet crude for April delivery settled down
38 cents, or 0.5%, at $81.49 on the New York Mercantile
Exchange. Brent crude on the ICE futures exchange closed
down 56 cents, or 0.7%, at $79.91 a barrel.
Oil prices declined nearly $2 a barrel in overnight
trading Tuesday as losses in overseas equity markets,
a lower open for U.S. stocks and a stronger dollar against
the euro weighed on dollar-denominated oil prices.
But a rally in U.S. technology stocks after Cisco
Systems Inc. (CSCO)unveiled a new router Tuesday led the
broader equity market higher during the day, helping crude
oil trim its losses.
Crude oil has failed to hold five streaks above $80 a
barrel over the last six months, and analysts viewed the
latest run above that level with some skepticism.
"I think the bulls are making an extreme push with the
understanding that they're up against the top of the
current range, so it's now or never for them," said
Stephen Schork, editor of the oil and gas newsletter
The Schork Report. "They're thinking, 'If we don't push
it up to $85 range it will go down to $70-$75,'" he said.
There was little reaction in the oil markets to the
U.S. Department of Energy's monthly energy outlook
published midday Tuesday. Although the agency raised its
2010 oil consumption outlook to 1.5 million barrels per
day from 1.2 million and forecast prices above $80 per
barrel, it projected that average prices at the pump would
remain below $3 a gallon through 2011.
"The market didn't know how to react," Schork said.
"[The report] said we're likely looking at $80 oil for the
foreseeable future, while retail gasoline prices don't
reflect $80 oil."
Energy analyst Jim Ritterbusch of Ritterbusch
& Associates told clients in a note Tuesday that the higher
market reflected traders betting too heavily and too early
on seasonal strength in gasoline prices.
"Just as the gasoline market has led the complex higher
for more than 3 weeks, further price weakness is almost
certain to be led by the RBOB," he wrote. "Some guidance
in this regard should be forthcoming during the next couple
of sessions from the [American Petroleum Institute and
U.S. Energy Information Administration] stats as well as
financial developments capable of forcing a sharp move in
either the stock market or dollar."
Front-month April reformulated gasoline blendstock,
or RBOB, settled down 2.89 cents, or 1.3%, to $2.2603 a
gallon. April heating oil settled down 1.57 cents, or
0.8%, to $2.0898 a gallon.
The American Petroleum Institute, a trade group,
reported Tuesday afternoon that crude oil stocks rose by
6.5 million barrels last week, gasoline stocks declined
3.2 million barrels, distillate stocks include diesel and
heating oil declined 2.8 million barrels and refinery
utilization declined 0.7 percentage point to 80.9%.
Analysts surveyed by Dow Jones Newswires forecast that
crude oil stocks rose 1.7 million barrels last week while
gasoline inventories rose by 100,000 barrels. Distillate
stocks are expected to have fallen by 700,000 barrels.
Refinery utilization rates are seen having risen
0.1 percentage point to 82% of capacity.
Front-month crude oil prices declined slightly to
$81.45 a barrel in after-market electronic trading after
the API data was released, while front-month heating oil
and distillates both rose a fraction of a cent.
The U.S. Energy Information Administration will publish
its data Wednesday morning.
More information on settlements and highs and lows for
futures on Nymex and ICE platforms can be found by searching
for the following headlines:
Nymex Light Crude Oil Close
Nymex Harbor RBOB Gasoline Close
Nymex Heating Oil Close
ICE Brent Crude Oil Close
ICE Gas Oil Close
-By Edward Welsch, Dow Jones Newswires; 613-237-0669;
edward.welsch@dowjones.com
DJ Nymex Globex Energy Futures Hourly Price Update
DJ Nymex Globex Energy Futures Hourly Price Update
Last Change Bid Ask Previous
Settlement
Crude Oil ($/bbl.)
APR0 81.29 -0.20 81.27 81.29 81.49
MAY0 81.66 -0.20 81.63 81.66 81.86
JUN0 82.10 -0.20 82.07 82.11 82.30
Heating Oil ($/gal.)
APR0 2.0910 +0.0012 2.0892 2.0908 2.0898
MAY0 ... ... 2.1000 2.1033 2.1026
JUN0 ... ... 2.1129 2.1169 2.1165
RBOB Gasoline ($/gal.)
APR0 2.2603 UNCH 2.2616 2.2627 2.2603
MAY0 2.2625 +0.0002 2.2608 2.2673 2.2623
JUN0 ... ... 2.2525 2.2605 2.2558
Natural Gas ($/mmBtu)
APR0 4.516 UNCH 4.507 4.517 4.516
MAY0 4.575 UNCH 4.570 4.577 4.575
JUN0 ... ... 4.626 4.644 4.643
Data delayed at least 30 minutes
Prices in U.S. Dollars
Source: Thomson Reuters
Monday, March 8, 2010
Oil May Pull Back on Risk Trends After Resistance Break
Mar 08, 2010 (DailyFX via COMTEX) -- Oil prices have taken out key resistance but risk trends may help see a pull-back in the near term. Gold and silver may turn lower as a business economists' survey calls for Fed rate hikes in the next 6 months.
Commodities - Energy
Oil May Pull Back on Risk Trends After Resistance Break
Crude Oil (WTI) $82.30 +$0.80 +0.98% Prices negated the bearish implications of a Rising Wedge that had been taking shape over recent weeks, breaking above the formation's upper boundary to test horizontal resistance at $82.23. Continued bullish momentum eyes the next barrier at $83.52. The economic calendar is empty, leaving oil to trade with risk sentiment. Indeed, the percent-change correlation between the price of crude and the MSCI World Stock Index stands at 0.76. European shares are not showing directional conviction in early trade but US equity index futures have slipped into negative territory, giving up all their Asia-session gains. This may prove to be hinting that sellers are positioning to take the reins, with initial support at the broken wedge top (now at $81.17). Commodities - Metals
Gold, Silver May Decline on US Fed Rate Hike Outlook
Gold $1136.85 +$2.21 +0.19% Gold continue to consolidate below support-turned-resistance below $1142.76 at a rising trend line established from the swing bottom in early February, finding support above the $1118.60-1125.13 region. The semi-annual survey from the National Association of Business Economists (NABE) may be the most significant driver of price action in the near term. The report showed that most respondents believe the Fed will raise interest rates by 25-50bps within six months, which may weigh on inflation expectations and put downward pressure on gold as the go-to hedge against runaway prices.
Silver $17.46 +$0.10 +0.59% As with gold, the semi-annual survey out of the NABE may be the most significant near-term driver of price action, offering sellers the upper hand heading into US trading open. Technically, prices continue to inch higher along resistance marked by a rising trend line connecting major swing highs from early February, with a move lower seeing initial support at $16.80. For real time news and analysis, please visit http://forexstream.dailyfx.com
To receive future articles by email, please contact Ilya at ispivak@dailyfx.com
Commodities - Energy
Oil May Pull Back on Risk Trends After Resistance Break
Crude Oil (WTI) $82.30 +$0.80 +0.98% Prices negated the bearish implications of a Rising Wedge that had been taking shape over recent weeks, breaking above the formation's upper boundary to test horizontal resistance at $82.23. Continued bullish momentum eyes the next barrier at $83.52. The economic calendar is empty, leaving oil to trade with risk sentiment. Indeed, the percent-change correlation between the price of crude and the MSCI World Stock Index stands at 0.76. European shares are not showing directional conviction in early trade but US equity index futures have slipped into negative territory, giving up all their Asia-session gains. This may prove to be hinting that sellers are positioning to take the reins, with initial support at the broken wedge top (now at $81.17). Commodities - Metals
Gold, Silver May Decline on US Fed Rate Hike Outlook
Gold $1136.85 +$2.21 +0.19% Gold continue to consolidate below support-turned-resistance below $1142.76 at a rising trend line established from the swing bottom in early February, finding support above the $1118.60-1125.13 region. The semi-annual survey from the National Association of Business Economists (NABE) may be the most significant driver of price action in the near term. The report showed that most respondents believe the Fed will raise interest rates by 25-50bps within six months, which may weigh on inflation expectations and put downward pressure on gold as the go-to hedge against runaway prices.
Silver $17.46 +$0.10 +0.59% As with gold, the semi-annual survey out of the NABE may be the most significant near-term driver of price action, offering sellers the upper hand heading into US trading open. Technically, prices continue to inch higher along resistance marked by a rising trend line connecting major swing highs from early February, with a move lower seeing initial support at $16.80. For real time news and analysis, please visit http://forexstream.dailyfx.com
To receive future articles by email, please contact Ilya at ispivak@dailyfx.com
Saturday, March 6, 2010
A Bull Trend Matures as Crude Moves on to $82 following NFPs
Mar 05, 2010 (DailyFX via COMTEX) -- Scheduled event risk was generally a disappointment for those seeking out volatility; but the data, combined with the stable backdrop of advancing risk appetite, would nonetheless push crude higher. A commodity of industrialization and speculation, oil extended its recently choppy trend to test yet another prominent, even number: $82.
North American Commodity Update
Commodities - Energy
Crude Oil (LS NYMEX) - $81.92 // $1.71 // 2.13% Scheduled event risk was generally a disappointment for those seeking out volatility; but the data, combined with the stable backdrop of advancing risk appetite, would nonetheless push crude higher. A commodity of industrialization and speculation, oil extended its recently choppy trend to test yet another prominent, even number: $82. Aside from signifying the highest level for the commodity in nearly two months, this figure also has a history amongst speculators as the turning point for the October 21st peak and reversal. For technical traders, a stall and collapse from here would further a 'head-and-shoulders' formation. Otherwise, the distracted advance of the past month would not have to push much further to surmount 16-month highs at $84. Speculative interest is certainly carrying its weight when it comes to this securities appreciation. Matching general pace and bearing in the equities market, oil traders have seen their optimism fortified by the progress made towards buttressing the Greek economy and ensuring its financial troubles do not spread to the rest of the European Union and perhaps beyond. Additional austerity cuts from the government itself were a considerable gesture; but it was the nation's ability to successfully raise funds that provided investors some level of confidence. Nonetheless, fear has not yet fully dissipated. Should the market doubt the EU's resolve to lend whatever is necessary to bolster Greece or fear that troubles in Spain and Portugal could swamp effective rescue measures; the financial stability of the region could once again stoke anxiety.
For near-term speculative interest, the US labor data for February carried its own influence over this capital markets. From a speculative standpoint, the data would print close to the market's forecasts. From a purely economic standpoint, the data would offer a modest boost to growth forecasts and thereby the outlook for energy demand. In fact, many commentators believe that had February snowstorms not been a factor, the month would have shown a net increase in payrolls. Nonetheless, putting this report into context, the world's largest economy is still suffering from net job losses when the unemployment rate is already at 9.7 percent. Considering the subsequent influence this has on consumer spending, the outlook for a robust recovery that leverages energy demand is relatively mute. In the meantime, supply is still extraordinarily high. The increase in the Department of Energy's crude oil inventory figures (extending the longest series of weekly increases since May) pushed US stockpiles to its highest level since August at 341.6 million barrel. It will be difficult to work off these excessive supplies and compensate for the slack capacity at refineries and further up the supply chain. Looking forward, the OPEC meeting on the 17th could provide a better assessment of production plans from the world's largest collective supplier of petroleum productions.
Friday, March 5, 2010
ANALYSIS-MEast oil demand to outpace world with petrodollars
* Subsidised fuel encourages energy consumption growth
* Middle East to exceed global energy demand growth
* Saudi Arabia, Iran to drive demand growth
By Luke Pachymuthu and Jennifer Tan
DUBAI/SINGAPORE, March 5 (Reuters) - Middle East oil demand could grow by nearly 5 percent in 2010, outpacing a modest recovery in global energy demand as the world's top oil exporting governments continue spending petrodollars to boost economies, analysts said.
Oil export income has fuelled expansion in the region, and given governments the cash to spend their way through the global economic downturn. Cheap subsidised fuel has encouraged rapid energy consumption growth that some regional governments have struggled to meet.
OPEC's top two producers Saudi Arabia and Iran would drive more than half the Middle East's oil demand growth.
The Paris-based International Energy Agency (IEA) expected demand growth in 2010 in the region of 320,000 barrels per day (bpd) or 4.5 percent, to reach a total of 7.55 million bpd, said Eduardo Lopez, a senior oil demand analyst at the IEA.
That was over twice the IEA's forecast 2010 global oil demand growth of 1.8 percent, the first growth year in three years after recession cut fuel use.
PFC Energy estimates product demand to grow about 3.85 percent in 2010.
Rising diesel and gasoline demand would spur demand growth of 130,000 bpd in top oil exporter Saudi Arabia in 2010, taking total demand for the Arab world's largest economy to 2.76 million bpd. That was higher than demand for Brazil and close to Russia's fuel consumption.
"In Saudi Arabia, the main demand driver comes from the transportation sector, although power generation is also important," said Victor Shum an analyst with energy consultancy Purvin & Gertz Inc.
BLOWS
Reserves accumulated during the oil price rally of 2002-2008 had given the Saudi economy a cushion to absorb the blows the global crisis dealt the region over the past two years.
Steady gains in oil prices during 2009 meant that it had to draw less on those reserves than it would have in a lower price environment.
Saudi Arabia's real GDP growth is expected to be 3.8 percent in 2010, well up from 0.2 percent in 2009 as state spending remains high and private consumption picks up, a Reuters poll showed.
The kingdom would cut diesel exports by 19 percent to around 105,000 bpd in 2010 as domestic demand absorbed more Saudi refinery output.
Seasonal diesel demand peaks in the summer as the population run air conditioning units hard to counter soaring desert temperatures. This year, that peak was likely to be higher than ever as power demand rises.
"Diesel is on par with gasoline in terms of demand growth not only from the transportation but also as power demand continues to accelerate seasonality will increase," said consultancy PFC Energy in a February Gulf Energy report.
In Iran, the world's fifth-largest oil exporter, demand would rise 110,000 bpd to 1.86 million bpd, up more than 6 percent of the year and reversing a contraction in 2009.
Iran's product demand shrunk 5.1 percent in 2009, with diesel accounting for nearly half this decline, according to PFC Energy.
Insufficient supply from domestic refineries and electrol issues have had an impact on demand growth in Tehran.
Despite its massive oil reserves, the Islamic Republic lacks the refineries to meet domestic demand. It imports the shortfall from international markets and then subsidises the price at the pump to offer some of the cheapest gasoline in the world.
"Demand has been largely driven by transportation...downside risk (is) economic slowdown, political uncertainty (domestic and international)," Lopez said.
The IEA is expecting Iran's oil demand to grow by 6.3 percent, Lopez said.
Politicians in the United States have targeted this reliance on international supply as a weakness it may exploit through sanctions to put pressure on Tehran to halt uranium enrichment.
The U.S. and its allies suspect Iran covertly aims to develop atomic arms, while Tehran says its nuclear programme is for electricity generation.
The more demand increases, the more Iran depends on foreign fuel suppliers and the more exposed it is to U.S. political pressure on suppliers to stop selling fuel to Iran.
"Iran's refineries cannot keep pace with demand growth," Shum said." Imports have rapidly increased from essentially none in 2005 to more than 100,000 bpd today."
Smuggling too has played a part in Iran's demand. The country's gasoline is cheaper than its neighbours, encouraging exports.
TWO STORIES
Oil demand in the UAE is the tale of two contrasting economic stories in Dubai and Abu Dhabi. In the former, the end of a real estate boom and a more recent debt crisis has led to the delay or cancellation of hundreds of billions of dollars worth of construction projects, impacting diesel demand.
But in Abu Dhabi, as in Riyadh, reserves fattened through windfall oil export earnings as the oil price rally allowed the government to continue spending.
Abu Dhabi is the capital of the seven-member federation of the United Arab Emirates, of which Dubai is also a member. The UAE's product demand was pegged at around 304,000 bpd in 2010, up from 294,000 bpd in 2009, according to consultancy PFC Energy.
Gas oil exports from the UAE are expected to dip about 3 percent because of the increased domestic demand.
"The demand is likely to be driven from the boom going on in Abu Dhabi. It would have been much higher if Dubai didn't have its financial problems," said a senior trader based in the Middle East.
http://graphics.thomsonreuters.com/310/ME_OILD0310.gif ==============================================================
2010 2009 2008 TOTAL PRODUCT DEMAND Middle East 4.402 mbpd 4.239 mbpd 4.165 mpbd Saudi Arabia 1.900 mbpd 1.797 mbpd 1.648 mbpd Iran 1.600 mbpd 1.566 mbpd 1.650 mbpd
*mbpd - million barrels per day ==============================================================
(Editing by Simon Webb and Sue Thomas)
* Middle East to exceed global energy demand growth
* Saudi Arabia, Iran to drive demand growth
By Luke Pachymuthu and Jennifer Tan
DUBAI/SINGAPORE, March 5 (Reuters) - Middle East oil demand could grow by nearly 5 percent in 2010, outpacing a modest recovery in global energy demand as the world's top oil exporting governments continue spending petrodollars to boost economies, analysts said.
Oil export income has fuelled expansion in the region, and given governments the cash to spend their way through the global economic downturn. Cheap subsidised fuel has encouraged rapid energy consumption growth that some regional governments have struggled to meet.
OPEC's top two producers Saudi Arabia and Iran would drive more than half the Middle East's oil demand growth.
The Paris-based International Energy Agency (IEA) expected demand growth in 2010 in the region of 320,000 barrels per day (bpd) or 4.5 percent, to reach a total of 7.55 million bpd, said Eduardo Lopez, a senior oil demand analyst at the IEA.
That was over twice the IEA's forecast 2010 global oil demand growth of 1.8 percent, the first growth year in three years after recession cut fuel use.
PFC Energy estimates product demand to grow about 3.85 percent in 2010.
Rising diesel and gasoline demand would spur demand growth of 130,000 bpd in top oil exporter Saudi Arabia in 2010, taking total demand for the Arab world's largest economy to 2.76 million bpd. That was higher than demand for Brazil and close to Russia's fuel consumption.
"In Saudi Arabia, the main demand driver comes from the transportation sector, although power generation is also important," said Victor Shum an analyst with energy consultancy Purvin & Gertz Inc.
BLOWS
Reserves accumulated during the oil price rally of 2002-2008 had given the Saudi economy a cushion to absorb the blows the global crisis dealt the region over the past two years.
Steady gains in oil prices during 2009 meant that it had to draw less on those reserves than it would have in a lower price environment.
Saudi Arabia's real GDP growth is expected to be 3.8 percent in 2010, well up from 0.2 percent in 2009 as state spending remains high and private consumption picks up, a Reuters poll showed.
The kingdom would cut diesel exports by 19 percent to around 105,000 bpd in 2010 as domestic demand absorbed more Saudi refinery output.
Seasonal diesel demand peaks in the summer as the population run air conditioning units hard to counter soaring desert temperatures. This year, that peak was likely to be higher than ever as power demand rises.
"Diesel is on par with gasoline in terms of demand growth not only from the transportation but also as power demand continues to accelerate seasonality will increase," said consultancy PFC Energy in a February Gulf Energy report.
In Iran, the world's fifth-largest oil exporter, demand would rise 110,000 bpd to 1.86 million bpd, up more than 6 percent of the year and reversing a contraction in 2009.
Iran's product demand shrunk 5.1 percent in 2009, with diesel accounting for nearly half this decline, according to PFC Energy.
Insufficient supply from domestic refineries and electrol issues have had an impact on demand growth in Tehran.
Despite its massive oil reserves, the Islamic Republic lacks the refineries to meet domestic demand. It imports the shortfall from international markets and then subsidises the price at the pump to offer some of the cheapest gasoline in the world.
"Demand has been largely driven by transportation...downside risk (is) economic slowdown, political uncertainty (domestic and international)," Lopez said.
The IEA is expecting Iran's oil demand to grow by 6.3 percent, Lopez said.
Politicians in the United States have targeted this reliance on international supply as a weakness it may exploit through sanctions to put pressure on Tehran to halt uranium enrichment.
The U.S. and its allies suspect Iran covertly aims to develop atomic arms, while Tehran says its nuclear programme is for electricity generation.
The more demand increases, the more Iran depends on foreign fuel suppliers and the more exposed it is to U.S. political pressure on suppliers to stop selling fuel to Iran.
"Iran's refineries cannot keep pace with demand growth," Shum said." Imports have rapidly increased from essentially none in 2005 to more than 100,000 bpd today."
Smuggling too has played a part in Iran's demand. The country's gasoline is cheaper than its neighbours, encouraging exports.
TWO STORIES
Oil demand in the UAE is the tale of two contrasting economic stories in Dubai and Abu Dhabi. In the former, the end of a real estate boom and a more recent debt crisis has led to the delay or cancellation of hundreds of billions of dollars worth of construction projects, impacting diesel demand.
But in Abu Dhabi, as in Riyadh, reserves fattened through windfall oil export earnings as the oil price rally allowed the government to continue spending.
Abu Dhabi is the capital of the seven-member federation of the United Arab Emirates, of which Dubai is also a member. The UAE's product demand was pegged at around 304,000 bpd in 2010, up from 294,000 bpd in 2009, according to consultancy PFC Energy.
Gas oil exports from the UAE are expected to dip about 3 percent because of the increased domestic demand.
"The demand is likely to be driven from the boom going on in Abu Dhabi. It would have been much higher if Dubai didn't have its financial problems," said a senior trader based in the Middle East.
http://graphics.thomsonreuters.com/310/ME_OILD0310.gif ==============================================================
2010 2009 2008 TOTAL PRODUCT DEMAND Middle East 4.402 mbpd 4.239 mbpd 4.165 mpbd Saudi Arabia 1.900 mbpd 1.797 mbpd 1.648 mbpd Iran 1.600 mbpd 1.566 mbpd 1.650 mbpd
*mbpd - million barrels per day ==============================================================
(Editing by Simon Webb and Sue Thomas)
Oil rises towards $81; China signals continued stimulus
* China's premier addresses National People's Congress
* Oil trades close to seven-week highs near $81
* Coming up: U.S. non-farm payrolls at 1330 GMT (Adds Strait of Malacca threat, updates prices)
By Alejandro Barbajosa
SINGAPORE, March 5 (Reuters) - Crude climbed on Friday, capping two consecutive weeks of trading above $80, after China signalled it would maintain its economic stimulus, rekindling hopes for accelerating growth to drain excess oil supplies.
China's Premier Wen Jiabao, in his annual address to the National People's Congress, said the world's second-largest oil consumer will continue an appropriately easy monetary stance and an active fiscal policy. [ID:nTOE6230AE]
U.S. crude for April gained 52 cents to $80.73 a barrel by 0810 GMT, after touching a seven-week high of $81.23 two days ago. London ICE Brent for April advanced 49 cents to $79.03.
Asian shares surged after encouraging retail sales and jobs data from the United States suggested Asia's biggest export market was stabilising. Analysts anticipate a report later on Friday to show U.S. non-farm payrolls fell in February because of severe snowstorms. [ID:nN02150933]
"Fundamentally, thanks to the cold weather in the northern hemisphere, stocks including floating storage are decreasing," said Keichi Sano, general manager of research at SCM Securities in Tokyo.
"But the market doesn't look so strong to break above the $85 level," Sano said. "Oil is trading in a very tight range despite recent fear of tightening monetary policy in China or Greece troubles, or upside potential because of Iran tensions."
China escaped the worst of the global slump by ramping up credit, slashing interest rates and launching a 4 trillion yuan ($585 billion) infrastructure programme in late 2008.
But in the past two months, China has restricted the amount of money that banks can lend by enforcing higher cash reserve ratios, aiming to prevent an over-heating of the economy.
DOLLAR
Currency movements have also been a leading factor for oil prices this year. The dollar was steady on Friday against a basket of currencies. <.DXY>
But on Thursday the dollar fell against the euro after comments by the European Central Bank reinforced the view interest rates in the region will remain low in the foreseeable future. [USD/]
A stronger dollar tends to pressure oil because it makes dollar-denominated commodities more expensive for other currency holders.
New York crude has traded in a $69-$84 range over the past few months amid uncertainty about the speed of the global economic recovery. Some traders and analysts say currency movements may play an important role in pushing prices out of those limits.
"I don't think the market can break the range yet, but the euro-dollar is moving quite crazy, so it can eventually give some reason to break," said Sano.
Friday's U.S. employment report is expected to show a loss of 50,000 jobs in February, compared with 20,000 job cuts in January, a Reuters poll of economists shows. But some market watchers said an even greater number of job losses was already priced in to the oil market.
A militant faction in Nigeria's Niger Delta said on Thursday it had blown up an oil facility operated by Italy's Agip , its second attack in as many days, and warned foreign oil companies to leave the region. There was no independent confirmation of the attack. [ID:nLDE6231CC]
Singapore said on Friday it had raised alert levels in the city-state and beefed up security at its airport and new casino resorts after a warning by its navy on Thursday of possible attacks on oil tankers in a key shipping lane. [ID:nSGE62409F] (Editing by Ed Lane)
* Oil trades close to seven-week highs near $81
* Coming up: U.S. non-farm payrolls at 1330 GMT (Adds Strait of Malacca threat, updates prices)
By Alejandro Barbajosa
SINGAPORE, March 5 (Reuters) - Crude climbed on Friday, capping two consecutive weeks of trading above $80, after China signalled it would maintain its economic stimulus, rekindling hopes for accelerating growth to drain excess oil supplies.
China's Premier Wen Jiabao, in his annual address to the National People's Congress, said the world's second-largest oil consumer will continue an appropriately easy monetary stance and an active fiscal policy. [ID:nTOE6230AE]
U.S. crude for April gained 52 cents to $80.73 a barrel by 0810 GMT, after touching a seven-week high of $81.23 two days ago. London ICE Brent for April advanced 49 cents to $79.03.
Asian shares surged after encouraging retail sales and jobs data from the United States suggested Asia's biggest export market was stabilising. Analysts anticipate a report later on Friday to show U.S. non-farm payrolls fell in February because of severe snowstorms. [ID:nN02150933]
"Fundamentally, thanks to the cold weather in the northern hemisphere, stocks including floating storage are decreasing," said Keichi Sano, general manager of research at SCM Securities in Tokyo.
"But the market doesn't look so strong to break above the $85 level," Sano said. "Oil is trading in a very tight range despite recent fear of tightening monetary policy in China or Greece troubles, or upside potential because of Iran tensions."
China escaped the worst of the global slump by ramping up credit, slashing interest rates and launching a 4 trillion yuan ($585 billion) infrastructure programme in late 2008.
But in the past two months, China has restricted the amount of money that banks can lend by enforcing higher cash reserve ratios, aiming to prevent an over-heating of the economy.
DOLLAR
Currency movements have also been a leading factor for oil prices this year. The dollar was steady on Friday against a basket of currencies. <.DXY>
But on Thursday the dollar fell against the euro after comments by the European Central Bank reinforced the view interest rates in the region will remain low in the foreseeable future. [USD/]
A stronger dollar tends to pressure oil because it makes dollar-denominated commodities more expensive for other currency holders.
New York crude has traded in a $69-$84 range over the past few months amid uncertainty about the speed of the global economic recovery. Some traders and analysts say currency movements may play an important role in pushing prices out of those limits.
"I don't think the market can break the range yet, but the euro-dollar is moving quite crazy, so it can eventually give some reason to break," said Sano.
Friday's U.S. employment report is expected to show a loss of 50,000 jobs in February, compared with 20,000 job cuts in January, a Reuters poll of economists shows. But some market watchers said an even greater number of job losses was already priced in to the oil market.
A militant faction in Nigeria's Niger Delta said on Thursday it had blown up an oil facility operated by Italy's Agip , its second attack in as many days, and warned foreign oil companies to leave the region. There was no independent confirmation of the attack. [ID:nLDE6231CC]
Singapore said on Friday it had raised alert levels in the city-state and beefed up security at its airport and new casino resorts after a warning by its navy on Thursday of possible attacks on oil tankers in a key shipping lane. [ID:nSGE62409F] (Editing by Ed Lane)
Oil Weighed Down By Dollar, Inventories
Oil prices retreated Thursday, as a stronger greenback prompted traders to book profits in oil after the prices climbed more than 2.5% over the past two sessions. Rising inventory levels also added to the pressure.
Light, sweet crude oil for delivery in April settled $0.66 lower at $80.21 per barrel in the New York Mercantile Exchange, pulling back from a seven-week high above $81 reached in the previous session.
The Euro failed to hold ground even after the European Central Bank kept its benchmark interest rate unchanged at a record low of 1%, as the buck rose following reports from the US that showed a decline in unemployment claims and rise in factory orders.
Wednesday, the European currency had cut back some of its losses against the US Dollar after Greece announced new set of austerity measures aimed at reducing its huge budget deficit, which renewed hopes for a bail-out package for the debt-ridden country.
The US Energy Department's Energy Information Administration had reported Wednesday a 4.1 million barrel-increase in crude stockpiles during the week ended February 26, much higher than an increase by 1.1 million barrels economists had anticipated.
The Labor Department reported Thursday, initial claims for jobless benefits in the US fell by 29,000, in the week ended February 27, to 469,000. Economists were expecting claims to drop to 470,000.
Orders for US manufactured goods rose by 1.7% in January, according to a report from the Commerce Department. The increase was largely in line with estimates.
However, an unexpected drop in pending home sales cast a shadow of doubt over the outlook of US housing market. The National Association of Realtors' pending home sales index fell 7.6% to 90.4 in January, countering economists' expectations for a 1.0% increase.
(Market News Provided by RTTNews)
Light, sweet crude oil for delivery in April settled $0.66 lower at $80.21 per barrel in the New York Mercantile Exchange, pulling back from a seven-week high above $81 reached in the previous session.
The Euro failed to hold ground even after the European Central Bank kept its benchmark interest rate unchanged at a record low of 1%, as the buck rose following reports from the US that showed a decline in unemployment claims and rise in factory orders.
Wednesday, the European currency had cut back some of its losses against the US Dollar after Greece announced new set of austerity measures aimed at reducing its huge budget deficit, which renewed hopes for a bail-out package for the debt-ridden country.
The US Energy Department's Energy Information Administration had reported Wednesday a 4.1 million barrel-increase in crude stockpiles during the week ended February 26, much higher than an increase by 1.1 million barrels economists had anticipated.
The Labor Department reported Thursday, initial claims for jobless benefits in the US fell by 29,000, in the week ended February 27, to 469,000. Economists were expecting claims to drop to 470,000.
Orders for US manufactured goods rose by 1.7% in January, according to a report from the Commerce Department. The increase was largely in line with estimates.
However, an unexpected drop in pending home sales cast a shadow of doubt over the outlook of US housing market. The National Association of Realtors' pending home sales index fell 7.6% to 90.4 in January, countering economists' expectations for a 1.0% increase.
(Market News Provided by RTTNews)
DJ Nymex Globex Energy Futures Hourly Price Update
Last Change Bid Ask Previous
Settlement
Crude Oil ($/bbl.)
APR0 80.64 +0.43 80.64 80.66 80.21
MAY0 81.05 +0.42 81.05 81.08 80.63
JUN0 81.52 +0.42 81.52 81.56 81.10
Heating Oil ($/gal.)
APR0 2.0820 +0.0133 2.0802 2.0812 2.0687
MAY0 ... ... 2.0887 2.0954 2.0814
JUN0 ... ... 2.1050 2.1090 2.0946
RBOB Gasoline ($/gal.)
APR0 2.2460 +0.0123 2.2455 2.2465 2.2337
MAY0 2.2485 +0.0125 2.2479 2.2512 2.2360
JUN0 ... ... 2.2406 2.2449 2.2296
Natural Gas ($/mmBtu)
APR0 4.579 +0.004 4.578 4.580 4.575
MAY0 ... ... 4.647 4.650 4.643
JUN0 ... ... 4.720 4.726 4.717
Data delayed at least 30 minutes
Prices in U.S. Dollars
Source: Thomson Reuters
Settlement
Crude Oil ($/bbl.)
APR0 80.64 +0.43 80.64 80.66 80.21
MAY0 81.05 +0.42 81.05 81.08 80.63
JUN0 81.52 +0.42 81.52 81.56 81.10
Heating Oil ($/gal.)
APR0 2.0820 +0.0133 2.0802 2.0812 2.0687
MAY0 ... ... 2.0887 2.0954 2.0814
JUN0 ... ... 2.1050 2.1090 2.0946
RBOB Gasoline ($/gal.)
APR0 2.2460 +0.0123 2.2455 2.2465 2.2337
MAY0 2.2485 +0.0125 2.2479 2.2512 2.2360
JUN0 ... ... 2.2406 2.2449 2.2296
Natural Gas ($/mmBtu)
APR0 4.579 +0.004 4.578 4.580 4.575
MAY0 ... ... 4.647 4.650 4.643
JUN0 ... ... 4.720 4.726 4.717
Data delayed at least 30 minutes
Prices in U.S. Dollars
Source: Thomson Reuters
NYMEX-Crude inches towards $81/bbl, pares Thursday's losses
TOKYO, March 5 (Reuters) - U.S. crude futures rose nearer $81 on Friday, with a climb in Asian shares helping crude pare losses made a day earlier on a stronger dollar.
FUNDAMENTALS
* NYMEX crude for April delivery was up 39 cents at $80.60 a barrel by 0025 GMT, after settling down 66 cents at $80.21 a day earlier.
* Thursday's 0.8 percent decline came as the dollar strengthened and some weak economic data soured sentiment. Crude had hit a seven-week high of $81.23 on Wednesday.
Pending sales of existing U.S. homes fell more than expected in January, according to the National Association of Realtors, casting a shadow over some earlier positive economic data in the world's largest energy consumer.
* Japan's Nikkei average rose 1.1 percent on Friday with exporters such as Kyocera Corp <6971.T> lifted by a weaker yen and gains on Wall Street after encouraging U.S. data including better than expected monthly retail sales. Seoul shares also rose.
* A potentially bearish sign for crude demand came on Wednesday when the Energy Information Administration said U.S. crude inventories rose by a larger-than-expected 4.1 million barrels last week, while gasoline stocks also increased, raising questions about U.S. energy demand. [EIA/S]
MARKETS NEWS
* U.S. stocks rose on Thursday as better-than-expected monthly sales from retailers and a drop in the number of Americans filing claims for jobless benefits pointed to stabilisation in the economy.
* The euro was on the defensive on Friday, as a short squeeze in the single currency appeared to have run in course, with investors fretting about debt-laden Greece and Moody's cutting Deutsche Bank's ratings.
DATA/EVENTS
* The following data is expected on Friday:
- 0930 GMT--U.K. PPI Core Output/Feb
- 1100 GMT--Germany Industrial Orders/Jan
- 1330 GMT--U.S. Average Earnings/Feb
- 1330 GMT--U.S. Non-farm payrolls/Feb
- 1340 GMT--U.S. ECRI Inflation Index/Feb
RELATED NEWS > US shares rise on data; euro falls on ECB outlook [MKTS/GLOB] > Markets hit by dollar; soy, wheat down over 2 pct [COM/WRAP]
PRICES Oil prices as of 0025 GMT Contract Mnth Price Change Day ago pct MA-20* NYMEX Contracts US Crude APR0 $80.60 +0.39 -$0.66 -0.82% $77.17 Heat Oil APR0 207.95 +1.08 -2.50 -1.19% 199.96 RBOB APR0 224.40 +1.03 -1.39 -0.62% 204.17 Natgas APR0 $4.577 +0.002 -$0.182 -3.83% $5.074 ICE Contracts Brent APR0 -- +0.00 -$0.71 -0.90% $75.25 Gasoil MAR0 -- +0.00 -$4.50 -0.70% $607.94 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon. * = 20-day moving average for continuation month. (Reporting by Osamu Tsukimori; Editing by Edwina Gibbs)
FUNDAMENTALS
* NYMEX crude for April delivery was up 39 cents at $80.60 a barrel by 0025 GMT, after settling down 66 cents at $80.21 a day earlier.
* Thursday's 0.8 percent decline came as the dollar strengthened and some weak economic data soured sentiment. Crude had hit a seven-week high of $81.23 on Wednesday.
Pending sales of existing U.S. homes fell more than expected in January, according to the National Association of Realtors, casting a shadow over some earlier positive economic data in the world's largest energy consumer.
* Japan's Nikkei average rose 1.1 percent on Friday with exporters such as Kyocera Corp <6971.T> lifted by a weaker yen and gains on Wall Street after encouraging U.S. data including better than expected monthly retail sales. Seoul shares also rose.
* A potentially bearish sign for crude demand came on Wednesday when the Energy Information Administration said U.S. crude inventories rose by a larger-than-expected 4.1 million barrels last week, while gasoline stocks also increased, raising questions about U.S. energy demand. [EIA/S]
MARKETS NEWS
* U.S. stocks rose on Thursday as better-than-expected monthly sales from retailers and a drop in the number of Americans filing claims for jobless benefits pointed to stabilisation in the economy.
* The euro was on the defensive on Friday, as a short squeeze in the single currency appeared to have run in course, with investors fretting about debt-laden Greece and Moody's cutting Deutsche Bank's ratings.
DATA/EVENTS
* The following data is expected on Friday:
- 0930 GMT--U.K. PPI Core Output/Feb
- 1100 GMT--Germany Industrial Orders/Jan
- 1330 GMT--U.S. Average Earnings/Feb
- 1330 GMT--U.S. Non-farm payrolls/Feb
- 1340 GMT--U.S. ECRI Inflation Index/Feb
RELATED NEWS > US shares rise on data; euro falls on ECB outlook [MKTS/GLOB] > Markets hit by dollar; soy, wheat down over 2 pct [COM/WRAP]
PRICES Oil prices as of 0025 GMT Contract Mnth Price Change Day ago pct MA-20* NYMEX Contracts US Crude APR0 $80.60 +0.39 -$0.66 -0.82% $77.17 Heat Oil APR0 207.95 +1.08 -2.50 -1.19% 199.96 RBOB APR0 224.40 +1.03 -1.39 -0.62% 204.17 Natgas APR0 $4.577 +0.002 -$0.182 -3.83% $5.074 ICE Contracts Brent APR0 -- +0.00 -$0.71 -0.90% $75.25 Gasoil MAR0 -- +0.00 -$4.50 -0.70% $607.94 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon. * = 20-day moving average for continuation month. (Reporting by Osamu Tsukimori; Editing by Edwina Gibbs)
Thursday, March 4, 2010
NYMEX-CRUDE STEADY AFTER 1.5PCT RISE TO NEAR $81
TOKYO, March 4 (Reuters) - U.S. crude futures stood little changed near $81 a barrel on Thursday after a 1.5 percent rise a day earlier on the back of a weaker dollar.
FUNDAMENTALS
* NYMEX crude for April delivery
It rose as high as $81.23 on Wednesday, its highest since Jan. 12.
* Wednesday's climb came despite government data showing U.S. crude stocks rose by 4.1 million barrels last week, more than the 1.4 million barrel increase forecast. Gasoline stocks rose 700,000 barrels, slightly more than expected. [EIA/S]
The Energy Information Administration report showed that total distillate stocks fell 900,000 barrels, in line the Reuters poll forecast.
* The Obama administration said on Wednesday that its proposed "Volcker rule" on curbing risky proprietary trading by banks would phase in over two years, with possible one-year extensions. [ID:nN03110377]
MARKETS NEWS
* U.S. stocks ended little changed on Wednesday as worries about bank regulation and a setback for drug company Pfizer offset signs of improvement in the labour market and services sector.
* The euro
DATA/EVENTS
* The following data is expected on Thursday:
- 1000 GMT--Euro Zone GDP Revised/Q4
- 1200 GMT--BoE Rate Decision
- 1245 GMT--ECB Rate Decision
- 1330 GMT--U.S. Jobless Claims/Wkly
- 1330 GMT--U.S. Productivity Revised/Q4
- 1500 GMT--U.S. Durable Goods, Factory Orders/Jan
RELATED NEWS > No date for Chile Bio Bio refinery to restart [nN03109437]
PRICES Oil prices as of 0030 GMT Contract Mnth Price Change Day ago pct MA-20* NYMEX Contracts US Crude APR0 $80.83 -0.04 +$1.19 +1.49% $77.01 Heat Oil APR0 209.10 -0.27 +3.76 +1.83% 199.72 RBOB APR0 224.14 -0.62 +5.10 +2.32% 203.18 Natgas APR0 $4.749 -0.008 +$0.049 +1.04% $5.116 ICE Contracts Brent APR0 -- +0.00 +$1.07 +1.37% $75.25 Gasoil MAR0 -- +0.00 +$8.50 +1.33% $607.94 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon. * = 20-day moving average for continuation month. (Reporting by Osamu Tsukimori)
Wednesday, March 3, 2010
OIL STEADY BELOW $80 AFTER MIXED U.S. INVENTORY REPORT
* API says U.S. crude stockpiles rose 2.7 million barrels
* Traders see resistance for prices to stay above $80
* Coming up: EIA inventories data; 1530 GMT
By Alejandro Barbajosa
SINGAPORE, March 3 (Reuters) - Oil was little changed below $80 on Wednesday after an industry report showed U.S. crude inventories climbed more than expected on growing imports, while distillate stockpiles tumbled.
Tuesday's report from the American Petroleum Institute (API) showed a larger-than-forecast 4.1-million-barrel drop in distillate fuel supplies last week, including heating oil and diesel.
"Yesterday's API data was quite mixed," said Serene Lim, a Singapore-based oil analyst at ANZ.
U.S. crude futures for April fell 21 cents to $79.47 a barrel by 0328 GMT. London ICE Brent slid 28 cents to $77.90.
The front-month U.S. contract on Tuesday hit a seven-week intra-day high of $80.95 after the euro rebounded from a 9-½ month low against the dollar.
"The conditions are still rather difficult for prices to stay above $80 because we are not looking at very firm U.S. economic data yet," Lim said. "Oil goes up and people profit-take and then it comes down again."
Oil touched $83.95 a barrel in New York on Jan. 11, its highest price in 15 months.
Analysts forecast data from the U.S. Energy Information Administration (EIA) due out on Wednesday at 1530 GMT would show a 1.4 million-barrel increase in crude stocks, a 900,000-barrel drop in distillates and a 600,000-barrel gain in gasoline. [EIA/S]
U.S. gasoline stocks rose 900,000 barrels in the week to Feb 26, the API said.
DISTILLATE SURPLUS
Refinery maintenance in Asia and sustained northern hemisphere heating demand have raised expectations that a distillate surplus held in floating storage will dwindle.
Asian gas oil crack spreads, the premium at which the fuel trades over crude oil, reached their widest level in almost a year on Tuesday.
But depressed fuel oil values are cutting demand for heavy sour crude, forcing producers to deepen discounts to some regions.
Top world oil exporter Saudi Arabia cut the official selling price of most of its crude grades in April to customers in Asia, state oil company Saudi Aramco said on Tuesday. [ID: nLDE62123Z]
Investors have looked to wider economic data over the past year for signs of economic recovery and a potential rebound in energy demand.
OPEC meets next on March 17 and ministers are already suggesting there will be no change to current output quotas. [ID:nLDE61P1NL]
"Despite the fact the global economy is gradually recovering, demand has not increased significantly enough to make us reconsider our production ceiling," Iraqi Oil Minister Hussain al-Shahristani told Reuters on Tuesday. [ID:nLDE6211V0] (Editing by Clarence Fernandez)
- REUTERS
* Traders see resistance for prices to stay above $80
* Coming up: EIA inventories data; 1530 GMT
By Alejandro Barbajosa
SINGAPORE, March 3 (Reuters) - Oil was little changed below $80 on Wednesday after an industry report showed U.S. crude inventories climbed more than expected on growing imports, while distillate stockpiles tumbled.
Tuesday's report from the American Petroleum Institute (API) showed a larger-than-forecast 4.1-million-barrel drop in distillate fuel supplies last week, including heating oil and diesel.
"Yesterday's API data was quite mixed," said Serene Lim, a Singapore-based oil analyst at ANZ.
U.S. crude futures for April fell 21 cents to $79.47 a barrel by 0328 GMT. London ICE Brent slid 28 cents to $77.90.
The front-month U.S. contract on Tuesday hit a seven-week intra-day high of $80.95 after the euro rebounded from a 9-½ month low against the dollar.
"The conditions are still rather difficult for prices to stay above $80 because we are not looking at very firm U.S. economic data yet," Lim said. "Oil goes up and people profit-take and then it comes down again."
Oil touched $83.95 a barrel in New York on Jan. 11, its highest price in 15 months.
Analysts forecast data from the U.S. Energy Information Administration (EIA) due out on Wednesday at 1530 GMT would show a 1.4 million-barrel increase in crude stocks, a 900,000-barrel drop in distillates and a 600,000-barrel gain in gasoline. [EIA/S]
U.S. gasoline stocks rose 900,000 barrels in the week to Feb 26, the API said.
DISTILLATE SURPLUS
Refinery maintenance in Asia and sustained northern hemisphere heating demand have raised expectations that a distillate surplus held in floating storage will dwindle.
Asian gas oil crack spreads, the premium at which the fuel trades over crude oil, reached their widest level in almost a year on Tuesday.
But depressed fuel oil values are cutting demand for heavy sour crude, forcing producers to deepen discounts to some regions.
Top world oil exporter Saudi Arabia cut the official selling price of most of its crude grades in April to customers in Asia, state oil company Saudi Aramco said on Tuesday. [ID: nLDE62123Z]
Investors have looked to wider economic data over the past year for signs of economic recovery and a potential rebound in energy demand.
OPEC meets next on March 17 and ministers are already suggesting there will be no change to current output quotas. [ID:nLDE61P1NL]
"Despite the fact the global economy is gradually recovering, demand has not increased significantly enough to make us reconsider our production ceiling," Iraqi Oil Minister Hussain al-Shahristani told Reuters on Tuesday. [ID:nLDE6211V0] (Editing by Clarence Fernandez)
- REUTERS
NYMEX-CRUDE STEADY AFTER API CRUDE STOCK BUILD
TOKYO, March 3 (Reuters) - U.S. crude futures stood steady on Wednesday near $80 a barrel after a larger-than-expected build in U.S. crude inventories and a greater-than-forecast drawdown in distillates.
FUNDAMENTALS
* NYMEX crude for April delivery was unchanged at $79.68 a barrel by 0000 GMT, after settling up 98 cents a day earlier helped by a weaker dollar and an improved outlook for Greece's debt problems that lifted economic optimism.
Oil hit $80.95 on Tuesday, the highest since Jan. 12.
* The American Petroleum Institute (API) said after Tuesday's settlement that crude stocks rose 2.7 million barrels last week, distillate stocks were down 4.1 million barrels and gasoline stocks gained 909,000 barrels. [ID:nN02187860]
A Reuters poll had forecast that crude inventories rose 1.4 million barrels, gasoline stocks rose 600,000 barrels and distillates fell 900,000 barrels. [EIA/S]
* OPEC meets next on March 17 and ministers are already suggesting there will be no change to current output quotas. [ID:nLDE61P1NL]
"Despite the fact the global economy is gradually recovering, demand has not increased significantly enough to make us reconsider our production ceiling," Iraqi Oil Minister Hussain al-Shahristani told Reuters. [ID:nLDE6211V0]
MARKETS NEWS
* U.S. stocks ended slightly higher on Tuesday as mergers and acquisitions supported selected sectors, but investors pulled back from recent gains in some big-cap technology and bank shares.
* The euro rebounded from a 9-1/2-month low against the dollar on Tuesday as investors awaited new plans to address Greece's debt crisis and held out hope for some form of help from the European Union. [USD/]
DATA/EVENTS
* The following data is expected on Wednesday:
- 0858 GMT--Euro Zone Markit Services PMI/Feb
- 1200 GMT--U.S. MBA Purchase Index/Weekly
- 1230 GMT--U.S. Challenger Layoffs/Feb
- 1500 GMT--U.S. ISM N-Mfg Bus Act/Feb
- 1530 GMT--U.S. EIA Petroleum Report/Wkly
RELATED NEWS > Mexico closes three Gulf oil ports on weather-govt [nMEX003738] > Curacao refinery shut on strike, power problems [nN02153649] > US Oil Fund faces CFTC action for 2009 oil trade [nN02158344]
PRICES Oil prices as of 0000 GMT Contract Mnth Price Change Day ago pct MA-20* NYMEX Contracts US Crude APR0 $79.68 +0.00 +$0.98 +1.25% $76.83 Heat Oil APR0 206.31 +0.70 +3.26 +1.61% 199.41 RBOB APR0 219.61 -0.05 +4.10 +1.90% 202.04 Natgas APR0 $4.730 +0.022 +$0.029 +0.62% $5.151 ICE Contracts Brent APR0 -- +0.00 +$1.29 +1.68% $75.09 Gasoil MAR0 -- +0.00 +$4.25 +0.67% $606.48 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon. * = 20-day moving average for continuation month. (Reporting by Osamu Tsukimori; Editing by Edwina Gibbs)
FUNDAMENTALS
* NYMEX crude for April delivery was unchanged at $79.68 a barrel by 0000 GMT, after settling up 98 cents a day earlier helped by a weaker dollar and an improved outlook for Greece's debt problems that lifted economic optimism.
Oil hit $80.95 on Tuesday, the highest since Jan. 12.
* The American Petroleum Institute (API) said after Tuesday's settlement that crude stocks rose 2.7 million barrels last week, distillate stocks were down 4.1 million barrels and gasoline stocks gained 909,000 barrels. [ID:nN02187860]
A Reuters poll had forecast that crude inventories rose 1.4 million barrels, gasoline stocks rose 600,000 barrels and distillates fell 900,000 barrels. [EIA/S]
* OPEC meets next on March 17 and ministers are already suggesting there will be no change to current output quotas. [ID:nLDE61P1NL]
"Despite the fact the global economy is gradually recovering, demand has not increased significantly enough to make us reconsider our production ceiling," Iraqi Oil Minister Hussain al-Shahristani told Reuters. [ID:nLDE6211V0]
MARKETS NEWS
* U.S. stocks ended slightly higher on Tuesday as mergers and acquisitions supported selected sectors, but investors pulled back from recent gains in some big-cap technology and bank shares.
* The euro rebounded from a 9-1/2-month low against the dollar on Tuesday as investors awaited new plans to address Greece's debt crisis and held out hope for some form of help from the European Union. [USD/]
DATA/EVENTS
* The following data is expected on Wednesday:
- 0858 GMT--Euro Zone Markit Services PMI/Feb
- 1200 GMT--U.S. MBA Purchase Index/Weekly
- 1230 GMT--U.S. Challenger Layoffs/Feb
- 1500 GMT--U.S. ISM N-Mfg Bus Act/Feb
- 1530 GMT--U.S. EIA Petroleum Report/Wkly
RELATED NEWS > Mexico closes three Gulf oil ports on weather-govt [nMEX003738] > Curacao refinery shut on strike, power problems [nN02153649] > US Oil Fund faces CFTC action for 2009 oil trade [nN02158344]
PRICES Oil prices as of 0000 GMT Contract Mnth Price Change Day ago pct MA-20* NYMEX Contracts US Crude APR0 $79.68 +0.00 +$0.98 +1.25% $76.83 Heat Oil APR0 206.31 +0.70 +3.26 +1.61% 199.41 RBOB APR0 219.61 -0.05 +4.10 +1.90% 202.04 Natgas APR0 $4.730 +0.022 +$0.029 +0.62% $5.151 ICE Contracts Brent APR0 -- +0.00 +$1.29 +1.68% $75.09 Gasoil MAR0 -- +0.00 +$4.25 +0.67% $606.48 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon. * = 20-day moving average for continuation month. (Reporting by Osamu Tsukimori; Editing by Edwina Gibbs)
DJ US OIL INVENTORIES SURVEY: Oil Inventories Expected To Rise
NEW YORK (Dow Jones)--U.S. crude-oil and gasoline stocks are seen rising in
data due Wednesday from the Department of Energy, according to a Dow Jones
Newswires survey of analysts.
The data, put out by the department's Energy Information Administration and
covering the week ended this past Friday, are due to be released at 10:30 a.m.
EST Wednesday. The American Petroleum Institute, an industry group, will issue
its data at 4:30 p.m. EST Tuesday.
Crude-oil inventories are expected to rise by 700,000 barrels, according to
the mean of eight analysts' forecasts, with six analysts predicting a build and
two a draw. Predictions range from a decline of 1.6 million barrels to an
increase of 2.25 million barrels.
Gasoline stocks are expected to increase by 600,000 barrels, with five
analysts predicting an increase, two a decrease and one no change. Forecasts
range from a drop of 750,000 barrels to an increase of 2 million barrels.
Distillate stocks, including diesel and heating oil, are expected to fall
300,000 barrels. Five analysts predict a drop, two predict an increase and one
expects no change, with forecasts ranging from a decline of 1.75 million
barrels to an increase of 1.8 million barrels.
Refiners are expected to leave utilization unchange at 81.2% of capacity.
Three analysts expect an increase, two a decrease and three no change.
Analyst Crude Gasoline Distillates Refining
reported in percentage points. Figures are rounded to two decimal
places in table, one decimal place in averages and story. For analysts
providing forecasts in a range, the average of the upper and
lower ends of the range is used.
data due Wednesday from the Department of Energy, according to a Dow Jones
Newswires survey of analysts.
The data, put out by the department's Energy Information Administration and
covering the week ended this past Friday, are due to be released at 10:30 a.m.
EST Wednesday. The American Petroleum Institute, an industry group, will issue
its data at 4:30 p.m. EST Tuesday.
Crude-oil inventories are expected to rise by 700,000 barrels, according to
the mean of eight analysts' forecasts, with six analysts predicting a build and
two a draw. Predictions range from a decline of 1.6 million barrels to an
increase of 2.25 million barrels.
Gasoline stocks are expected to increase by 600,000 barrels, with five
analysts predicting an increase, two a decrease and one no change. Forecasts
range from a drop of 750,000 barrels to an increase of 2 million barrels.
Distillate stocks, including diesel and heating oil, are expected to fall
300,000 barrels. Five analysts predict a drop, two predict an increase and one
expects no change, with forecasts ranging from a decline of 1.75 million
barrels to an increase of 1.8 million barrels.
Refiners are expected to leave utilization unchange at 81.2% of capacity.
Three analysts expect an increase, two a decrease and three no change.
Analyst Crude Gasoline Distillates Refining
Figures in millions of barrels except for refining use, which is
Cameron Hanover +2.25 -0.75 -1.75 +0.35
Citi Futures +1.5 +1 -1 unch
GA Global Markets -1.6 +1.2 +1.8 unch
MF Global-Fitzpatrick +0.3 unch -1.1 unch
PFGBest -1 +2 +1 +0.5
Prestige Economics +2 -0.5 -0.5 +0.3
Ritterbusch & Assoc. +0.5 +1.7 unch -0.5
Societe Generale +1.6 +0.1 -0.5 -0.2
Average +0.7 +0.6 -0.3 unch
reported in percentage points. Figures are rounded to two decimal
places in table, one decimal place in averages and story. For analysts
providing forecasts in a range, the average of the upper and
lower ends of the range is used.
DJ OIL FUTURES: OIL RISES AS INVESTORS SEEK RISKIER ASSET
NEW YORK (Dow Jones)--Crude futures are higher Tuesday, with investors
seeking riskier assets, such as oil and equities, but caution remains ahead of
Wednesday's key oil inventory data report.
Light, sweet crude for April delivery recently traded 38 cents, or 0.5%,
higher at $79.08 a barrel on the New York Mercantile Exchange. Brent crude on
the ICE futures exchange traded 59 cents, or 0.8%, higher at $77.48 a barrel.
Oil reversed some of Monday's losses, with support coming from more positive
economic sentiment, said Gene McGillian, analyst with Tradition Energy in
Stamford, Conn. Equity markets were higher, buoyed by merger activity.
The Greek government is expected to announce Wednesday a new austerity
package to cut its huge budget deficit. But concerns about the sovereign debt
level in Europe still linger, reducing some of the confidence in the economic
recovery and prompting investors to remain wary, adding to much of the
volatility seen in the oil market recently.
Prices have been jostled in a range between $77 to $80 a barrel but the
conviction to push oil back above $80 a barrel is lacking, with McGillian
noting that traders are seeking more concrete evidence about whether the pace
of the economic recovery is fast enough to generate fuel demand.
Wednesday's weekly data report from the U.S. Energy Information
Administration is expected to influence trading this week, with analysts
currently expecting an increase in crude and gasoline stocks. Analysts surveyed
by Dow Jones see a 700,000 barrel rise in crude stocks, a 600,000 barrel
increase in gasoline stocks and a 300,000 barrel decline in distillate
inventories, that includes diesel and heating oil. Refinery processing rates
are expected to remain unchanged at 81.2% of capacity.
However, the inventory data could "easily be overshadowed by a series of
economic releases during the last half of the week," wrote Jim Ritterbusch,
president of trading advisory firm Ritterbusch and Associates in Galena, Ill.
The U.S. jobs picture will come into greater focus with Wednesday's ADP
employment report, Thursday's jobless claims and Friday's monthly unemployment
figure, said Ritterbusch.
Meanwhile, Chile may increase its demand for diesel imports following the
earthquake last weekend, analysts said. Chilean state-run oil company Empresa
Nacional del Petroleo, or Enap's, largest refinery could be off-line for at
least a month. The 116,000 barrel a day Refineria Bio Bio suffered structural
damage from the earthquake.
The company's second largest facility, the 104,000 barrel a day Refineria
Aconagua, is expected to restart operations later this week, once electrical
power is restored.
Front-month April reformulated gasoline blendstock, or RBOB, recently traded
2.08 cents, or 0.9%, higher at $2.1764 a gallon. April heating oil recently
traded 1.23 cents, or 0.6%, higher at $2.0358 a gallon.
Tuesday, March 2, 2010
AME Info, Abu Dhabi, United Arab Emirates, energy, oil and gas briefs
Mar 01, 2010 (AME Info - McClatchy-Tribune Information Services via COMTEX) -- IRAQ, NIPPON OIL GROUP OILFIELD TALKS STALL: Dhiya Jaafar, the head of Iraq's South Oil Co, has said that talks between Iraq and a Japanese group led by Nippon Oil Corp to develop the Nassiriya oilfield have reached a 'dead end', Reuters has reported. 'Talks with the Nippon group have reached a dead end, and we will start developing the field through national efforts,' he said. Nippon and its partners, oil explorer Inpex Corp and plant engineering firm JGC Corp, had been negotiating the deal since the first half of last year.
SAUDI TO NEARLY DOUBLE CRUDE EXPORTS TO INDIA: The Indian government has said that Saudi Arabia is willing to increase crude supplies to the South Asian nation to 40 million tonnes from about 25.5 million tonnes currently to meet the rising energy demand of the country, Reuters has reported. The announcement comes after Saudi oil minister Ali al-Naimi met with his Indian counterpart Shri Murli Deora in Riyadh. 'India also indicated sourcing heavier crude from Saudi Arabia, the Indian statement said without giving a time frame for the increase in Saudi crude supplies.
IRAN SEEKS TO ISSUE $1BN IN BONDS TO FUND POWER PLANTS: Iran plans to issue $1bn in bonds in the year beginning March 21 to finance new power plants and work on existing plants, subject to the approval of parliament, the state-run Mehr news agency said.
OIL DRILLING TO BE STABLE IN SAUDI IN 2010: Experts have said that drilling for oil in Saudi Arabia in 2010 is expected to remain the same as last year, but state oil giant Aramco would increase gas drilling activities, Reuters has reported. 'We see it (oil drilling) stable. We are not increasing, we are not dropping. ... We are trying to maintain around 100 rigs for the rest of the year,' one expert said, while a second expert said that gas exploration is the main drive. 'They are already concentrating on gas drilling more than on oil,' he said.
YEMEN TO INVEST $1.5BN TO BOOST POWER CAPACITY: Salah al-Attar, head of Yemen's General Investment Authority, has said the country wants to invest $1.5bn to boost power generation capacity by almost 1,400 megawatts to end constant outages across the country, Reuters has reported. Yemen wants to launch a tender this year to add 350 megawatts to the main gas turbine Maarib power plant which now has a capacity of 340 megawatts, he said. Another 220 megawatts would be added to the plant after awarding a gas rental contract next month to overcome supply gaps in the short-term, he said.
QATAR'S AL-SHAHEEN REFINERY PROJECT SEEN ON HOLD: Qatar Petroleum has put on hold its Al-Shaheen refinery indefinitely, MEED has reported, citing a source close to the project. One contractor source has said, it is not expecting the project to be re-tendered this year, as other contractors agree, however, saying they have not received any official confirmation that the project has been cancelled. The project set to be located in Mesaieed was intended to process heavy crude oil from the Al-Shaheen oil field.
SAUDI TO NEARLY DOUBLE CRUDE EXPORTS TO INDIA: The Indian government has said that Saudi Arabia is willing to increase crude supplies to the South Asian nation to 40 million tonnes from about 25.5 million tonnes currently to meet the rising energy demand of the country, Reuters has reported. The announcement comes after Saudi oil minister Ali al-Naimi met with his Indian counterpart Shri Murli Deora in Riyadh. 'India also indicated sourcing heavier crude from Saudi Arabia, the Indian statement said without giving a time frame for the increase in Saudi crude supplies.
IRAN SEEKS TO ISSUE $1BN IN BONDS TO FUND POWER PLANTS: Iran plans to issue $1bn in bonds in the year beginning March 21 to finance new power plants and work on existing plants, subject to the approval of parliament, the state-run Mehr news agency said.
OIL DRILLING TO BE STABLE IN SAUDI IN 2010: Experts have said that drilling for oil in Saudi Arabia in 2010 is expected to remain the same as last year, but state oil giant Aramco would increase gas drilling activities, Reuters has reported. 'We see it (oil drilling) stable. We are not increasing, we are not dropping. ... We are trying to maintain around 100 rigs for the rest of the year,' one expert said, while a second expert said that gas exploration is the main drive. 'They are already concentrating on gas drilling more than on oil,' he said.
YEMEN TO INVEST $1.5BN TO BOOST POWER CAPACITY: Salah al-Attar, head of Yemen's General Investment Authority, has said the country wants to invest $1.5bn to boost power generation capacity by almost 1,400 megawatts to end constant outages across the country, Reuters has reported. Yemen wants to launch a tender this year to add 350 megawatts to the main gas turbine Maarib power plant which now has a capacity of 340 megawatts, he said. Another 220 megawatts would be added to the plant after awarding a gas rental contract next month to overcome supply gaps in the short-term, he said.
QATAR'S AL-SHAHEEN REFINERY PROJECT SEEN ON HOLD: Qatar Petroleum has put on hold its Al-Shaheen refinery indefinitely, MEED has reported, citing a source close to the project. One contractor source has said, it is not expecting the project to be re-tendered this year, as other contractors agree, however, saying they have not received any official confirmation that the project has been cancelled. The project set to be located in Mesaieed was intended to process heavy crude oil from the Al-Shaheen oil field.
OIL FUTURES: CRUDE SETTLES DOWN 96c AT $78.70 AFTER RALLY FAILS
NEW YORK (Dow Jones)--Crude oil futures ended lower Monday as the market failed for the third straight day to sustain a rally above the psychologically important $80-a-barrel level.
Light, sweet crude oil for April delivery on the New York Mercantile Exchange settled 96 cents, or 1.2%, lower at $78.70 a barrel after several attempts to crack through an intraday high of $80.62 a barrel, the highest level since Jan. 12, fizzled. April North Sea Brent crude oil on the ICE settled 70 cents lower, at $76.89 a barrel.
"We've been between $70 and $84 for the last couple of months. The longer you stay in a range, you'll see faster moves within the ranging. But really nothing has changed," said Gene McGillian, an analyst with Tradition Energy in Stamford, Conn.
"If we come in [Tuesday] and see a further equities rally and maybe a little weakness in the dollar, the market could be right back up at $80," he said, but added that strong signs of higher oil demand will be needed to break the collar around prices.
He noted that April gasoline futures, trading for the first day as the front-month contract, came under heavy selling pressure after trading to the highest intraday front-month price since Oct. 6, 2008. "People saw gasoline above $2.20 and that looked pricey," he said, adding that heavy selling in the contract helped pulled down crude.
Traders said the market will focus on upcoming U.S. oil inventory data for near-term direction. The American Petroleum Institute's data for the week ended Feb. 26 are due Tuesday afternoon, while the more widely tracked figures from the government's Energy Information Administration are scheduled for release at 10:30 a.m. EST Wednesday.
Analysts surveyed by Dow Jones Newswires expect crude oil stocks to rise by a mean of 700,000 barrels, with forecasts ranging from a rise of 2.25 million barrels to a drop of 1.6 million barrels. Distillate stocks (diesel and heating oil) are expected to drop by 300,000 barrels, with a range of expectations from a rise of 1.8 million barrels to a drop of 1.75 million barrels. Gasoline stocks are expected to rise by 600,000 barrels, with projections spanning from a gain of 2 million barrels to a decline of 750,000 barrels.
Ahead of its March 17 meeting on oil production policy, the Organization of Petroleum Exporting Countries continues to pump more oil and show lower compliance with output restraints. Production from the 11 members of OPEC bound by output restraints crept up by 110,000 barrels a day in February to 26.895 million barrels a day, a Dow Jones Newswires survey showed.
That puts the group's compliance with targeted cuts that began in late 2008 at just 51%, down from 54% in January and 82% in March 2009. Oil prices have averaged near $77.50 a barrel, within OPEC's comfort zone, since the group agreed in December to keep formal output restraints in place. Members haven't given any signs that they plan to change policy at the upcoming Vienna talks.
April reformulated gasoline blendstock futures shed 3.23 cents, or 1.5%, to settle at $2.1556 a gallon. April heating oil settled 1.18 cents, or 0.6%, lower at $2.0235 a gallon.
More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headlines:
Nymex Light Crude Oil Close
Nymex Harbor RBOB Gasoline Close
Nymex Heating Oil Close
ICE Brent Crude Oil Close
ICE Gas Oil Close
-By David Bird, Dow Jones Newswires; 212-416-2141; david.bird@dowjones.com
Light, sweet crude oil for April delivery on the New York Mercantile Exchange settled 96 cents, or 1.2%, lower at $78.70 a barrel after several attempts to crack through an intraday high of $80.62 a barrel, the highest level since Jan. 12, fizzled. April North Sea Brent crude oil on the ICE settled 70 cents lower, at $76.89 a barrel.
"We've been between $70 and $84 for the last couple of months. The longer you stay in a range, you'll see faster moves within the ranging. But really nothing has changed," said Gene McGillian, an analyst with Tradition Energy in Stamford, Conn.
"If we come in [Tuesday] and see a further equities rally and maybe a little weakness in the dollar, the market could be right back up at $80," he said, but added that strong signs of higher oil demand will be needed to break the collar around prices.
He noted that April gasoline futures, trading for the first day as the front-month contract, came under heavy selling pressure after trading to the highest intraday front-month price since Oct. 6, 2008. "People saw gasoline above $2.20 and that looked pricey," he said, adding that heavy selling in the contract helped pulled down crude.
Traders said the market will focus on upcoming U.S. oil inventory data for near-term direction. The American Petroleum Institute's data for the week ended Feb. 26 are due Tuesday afternoon, while the more widely tracked figures from the government's Energy Information Administration are scheduled for release at 10:30 a.m. EST Wednesday.
Analysts surveyed by Dow Jones Newswires expect crude oil stocks to rise by a mean of 700,000 barrels, with forecasts ranging from a rise of 2.25 million barrels to a drop of 1.6 million barrels. Distillate stocks (diesel and heating oil) are expected to drop by 300,000 barrels, with a range of expectations from a rise of 1.8 million barrels to a drop of 1.75 million barrels. Gasoline stocks are expected to rise by 600,000 barrels, with projections spanning from a gain of 2 million barrels to a decline of 750,000 barrels.
Ahead of its March 17 meeting on oil production policy, the Organization of Petroleum Exporting Countries continues to pump more oil and show lower compliance with output restraints. Production from the 11 members of OPEC bound by output restraints crept up by 110,000 barrels a day in February to 26.895 million barrels a day, a Dow Jones Newswires survey showed.
That puts the group's compliance with targeted cuts that began in late 2008 at just 51%, down from 54% in January and 82% in March 2009. Oil prices have averaged near $77.50 a barrel, within OPEC's comfort zone, since the group agreed in December to keep formal output restraints in place. Members haven't given any signs that they plan to change policy at the upcoming Vienna talks.
April reformulated gasoline blendstock futures shed 3.23 cents, or 1.5%, to settle at $2.1556 a gallon. April heating oil settled 1.18 cents, or 0.6%, lower at $2.0235 a gallon.
More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headlines:
Nymex Light Crude Oil Close
Nymex Harbor RBOB Gasoline Close
Nymex Heating Oil Close
ICE Brent Crude Oil Close
ICE Gas Oil Close
-By David Bird, Dow Jones Newswires; 212-416-2141; david.bird@dowjones.com
NYMEX-CRUDE OIL STEADY BELOW $79/bbl AFTER 1 PCT FALL
TOKYO, March 2 (Reuters) - U.S. crude futures were steady on Tuesday after falling more than 1 percent a day earlier ahead of industry data expected to show rises in U.S. crude stockpiles.
FUNDAMENTALS
* NYMEX crude for April delivery was up 13 cents at $78.83 a barrel by 0021 GMT, after settling down 96 cents at $78.70 a day earlier.
* On Monday, it rose to a high of $80.62, its highest since Jan. 13. Prices have traded in a range between $69 and $84 a barrel since last October, but $80 a barrel is being reinforced as a key resistance level, analysts said.
* Monday's decline came after mixed U.S. economic data and a stronger dollar versus the euro kept the energy markets under pressure.
* Oil rallied in early trade on Monday on a combination of bullish sentiment and a rise in copper futures following a massive earthquake on Saturday in Chile, the top producer of the indispensable industrial metal. [MET/L]
* The American Petroleum Institute will release its weekly crude inventory report on Tuesday, followed by the government's inventory report on Wednesday.
* According to a preliminary Reuters poll of analysts, crude stocks rose by 1.3 million barrels last week, while distillate stocks fell by 600,000 barrels and gasoline stocks increased by 400,000 barrels. [EIA/S]
MARKETS NEWS
* U.S. stocks climbed for a second straight day on Monday, boosted by AIG's record-setting deal to sell a major Asian unit and on gains in semiconductor shares after SanDisk Corp raised its revenue forecast.
* The euro fell against the U.S. dollar on Monday, led by lingering uncertainty over a bailout for debt-strapped Greece and tracking a sharp sell-off in sterling. [USD/]
DATA/EVENTS
* The following data is expected on Tuesday:
- 0645 GMT--Swiss GDP/Q4
- 1000 GMT--Euro Zone Inflation/Feb
- 1245 GMT--U.S. ICSC/GS Chain Stores Sales/Weekly
- 1355 GMT--U.S. Redbook Retail Sales/Weekly
- 2130 GMT--U.S. API Petroleum Report/Weekly
- No set time: U.S. Domestic car and truck sales/Feb
RELATED NEWS > Japan jobless rate improves but outlook murky [nTOE6190AH] > Commodities price spike unlikely -IMF official [nN01116592] > CFTC, SEC eye clearinghouses governance - Gensler[nN01106515]
PRICES Oil prices as of 0021 GMT Contract Mnth Price Change Day ago pct MA-20* NYMEX Contracts US Crude APR0 $78.83 +0.13 -$0.96 -1.21% $76.57 Heat Oil APR0 203.10 +0.75 -1.18 -0.58% 198.90 RBOB APR0 216.50 +0.94 -3.23 -1.48% 200.71 Natgas APR0 $4.715 +0.036 -$0.134 -2.78% $5.187 ICE Contracts Brent APR0 -- +0.00 -$0.70 -0.90% $74.98 Gasoil MAR0 -- +0.00 +$5.00 +0.80% $604.69 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon. * = 20-day moving average for continuation month. (Reporting by Osamu Tsukimori; Editing by Joseph Radford)
2010-03-02 00:40:04 GMT (Reuters)
FUNDAMENTALS
* NYMEX crude for April delivery was up 13 cents at $78.83 a barrel by 0021 GMT, after settling down 96 cents at $78.70 a day earlier.
* On Monday, it rose to a high of $80.62, its highest since Jan. 13. Prices have traded in a range between $69 and $84 a barrel since last October, but $80 a barrel is being reinforced as a key resistance level, analysts said.
* Monday's decline came after mixed U.S. economic data and a stronger dollar versus the euro kept the energy markets under pressure.
* Oil rallied in early trade on Monday on a combination of bullish sentiment and a rise in copper futures following a massive earthquake on Saturday in Chile, the top producer of the indispensable industrial metal. [MET/L]
* The American Petroleum Institute will release its weekly crude inventory report on Tuesday, followed by the government's inventory report on Wednesday.
* According to a preliminary Reuters poll of analysts, crude stocks rose by 1.3 million barrels last week, while distillate stocks fell by 600,000 barrels and gasoline stocks increased by 400,000 barrels. [EIA/S]
MARKETS NEWS
* U.S. stocks climbed for a second straight day on Monday, boosted by AIG's record-setting deal to sell a major Asian unit and on gains in semiconductor shares after SanDisk Corp raised its revenue forecast.
* The euro fell against the U.S. dollar on Monday, led by lingering uncertainty over a bailout for debt-strapped Greece and tracking a sharp sell-off in sterling. [USD/]
DATA/EVENTS
* The following data is expected on Tuesday:
- 0645 GMT--Swiss GDP/Q4
- 1000 GMT--Euro Zone Inflation/Feb
- 1245 GMT--U.S. ICSC/GS Chain Stores Sales/Weekly
- 1355 GMT--U.S. Redbook Retail Sales/Weekly
- 2130 GMT--U.S. API Petroleum Report/Weekly
- No set time: U.S. Domestic car and truck sales/Feb
RELATED NEWS > Japan jobless rate improves but outlook murky [nTOE6190AH] > Commodities price spike unlikely -IMF official [nN01116592] > CFTC, SEC eye clearinghouses governance - Gensler[nN01106515]
PRICES Oil prices as of 0021 GMT Contract Mnth Price Change Day ago pct MA-20* NYMEX Contracts US Crude APR0 $78.83 +0.13 -$0.96 -1.21% $76.57 Heat Oil APR0 203.10 +0.75 -1.18 -0.58% 198.90 RBOB APR0 216.50 +0.94 -3.23 -1.48% 200.71 Natgas APR0 $4.715 +0.036 -$0.134 -2.78% $5.187 ICE Contracts Brent APR0 -- +0.00 -$0.70 -0.90% $74.98 Gasoil MAR0 -- +0.00 +$5.00 +0.80% $604.69 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon. * = 20-day moving average for continuation month. (Reporting by Osamu Tsukimori; Editing by Joseph Radford)
2010-03-02 00:40:04 GMT (Reuters)
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