Oil ended up for a third straight day on Friday despite a strong dollar as positive U.S. jobs data inspired hopes for more energy demand, and soybeans hit 5-1/2 month highs on lower-than-expected crop forecasts before easing on profit-taking.
Solid growth in American employment for a third month in a row indicated less need for monetary stimulus from the Federal Reserve, helping the dollar notch its biggest gain against the euro since January. U.S. stocks also rallied, to near 4-year highs. A strong dollar is usually a negative for commodities as it eases upward pressure on prices.
But Friday's session in oil, grains and metals were influenced more by optimism that the U.S. economy could pull away from other struggling regions of the world.
That could boost demand for raw materials, given the relative size of U.S. consumption versus other nations, analysts say. Even gold, which traded in opposite direction to the dollar at one time, rose with oil and other commodities. U.S. gold futures benchmark April contract settled up $12.80 at $1,711.50 an ounce. Gold is showing a lot of resiliency, precious metals attributing it partly to "firm oil prices". Crude oil was headed for a weekly gain after a three-day rally made up for Tuesday's price tumble caused by worries over Greece debt and shaky European economic data.
U.S. crude rose 82 cents for the session and 70 cents for the week, finishing at $107.40 a barrel. London's Brent rose 54 cents on the day and $2.33 on the week, closing at $125.98 In copper, aside from the growing confidence over the U.S. economy, investors were heartened by data indicating that China may soon be resorting to monetary easing that could work up demand for the base metal. China is the world's top consumer for copper, accounting for as much as 40 percent of total demand.
China's annual consumer inflation slowed sharply to a 20-month low at 3.2 percent in February, and factory output and retail sales also cooled more than forecast, giving policymakers ample room to further loosen monetary policy to support flagging growth.
Benchmark copper on the London Metal Exchange (LME) closed at $8,490, up almost 2 percent from a close of $8,330 on Thursday. For the week, however, it was down nearly 1 percent, after accounting for Tuesday's tumble of 2.5 percent.
Soybean prices rose to their highest level in 5-1/2 months on lower-than-expected South American crop estimates, before turning lower on profit-taking. Dry weather reduced the soy crop in Brazil, the world's No. 1 exporter, by 9 percent in three months and the crop in Argentina by 11 percent, the U.S. Department of Agriculture said on Friday.
The cuts in crop estimates by the USDA were much larger than traders had expected. May soybeans on the Chicago Board of Trade settled three quarters of a cent down for the session at $13.37-3/4 a bushel. For the week, it rose 4.25 cents. Its peak for Friday was $13.54 -- a high since Sept. 21.
Aside from profit-taking, soy was also pressured down by "spreading activity" in grains, which meant traders selling soybeans to buy corn and wheat. May corn ended at $6.45 a bushel, up 9-1/2 cents on the day and down 10 cents on the week.
May wheat finished at $6.43, up 8-1/4 cents for the session and off 31.5 cents on the week. (Reuters)
Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts
Saturday, March 10, 2012
Thursday, November 17, 2011
Oil Heads for First Weekly Drop Since September on European Debt Concern
Oil headed for the first weekly decline since September in New York as signs Europe’s debt crisis is spreading countered speculation economic recovery in the U.S. will boost demand in the biggest crude consumer.
Futures were little changed, after slipping as much as 0.8 percent, and headed for the first weekly drop in seven weeks. Prices fell below $100 a barrel yesterday as European bond yields rose, signaling leaders are struggling to stem the crisis that threatens economic growth and demand for commodities. Claims for U.S. unemployment benefits decreased to the lowest level in seven months, the Labor Department said.
“Europe is clearly where eyes are focused for all markets at the moment,” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty. in Sydney. “The potential for it to knock global growth prospects significantly is still there. We could see a pullback from these levels before heading higher again.”
Crude for December delivery declined as much as 81 cents to $98.01 a barrel in electronic trading on the New York Mercantile Exchange and was at $98.91 at 1:35 p.m. Sydney time. The contract yesterday dropped $3.77, or 3.7 percent, to $98.82, the lowest settlement since Nov. 14. Prices are down 8 cents this week. The December contract expires today. The more-active January contract slid 5 cents to $98.88.
Brent oil for January settlement was at $108.17 a barrel, down 5 cents, on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to U.S. futures was at $9.26, compared with a record $27.88 on Oct. 14.
New York crude may fall next week on heightened concern that Europe’s debt crisis is spreading and will hurt demand, according to a Bloomberg News survey. Eighteen of 36 analysts forecast oil will fall through Nov. 25. Eleven predicted a gain, and seven said there will be little change. Last week, 58 percent of those surveyed projected a drop.
Applications for jobless benefits decreased 5,000 in the week ended Nov. 12 to 388,000, Labor Department figures showed yesterday. Housing starts decreased 0.3 percent to a 628,000 annual rate in October, according to the Commerce Department. The median estimate of economists surveyed by Bloomberg News called for a drop to 610,000. Building permits, a proxy for future construction, jumped 10.9 percent. (Bloomberg)
Futures were little changed, after slipping as much as 0.8 percent, and headed for the first weekly drop in seven weeks. Prices fell below $100 a barrel yesterday as European bond yields rose, signaling leaders are struggling to stem the crisis that threatens economic growth and demand for commodities. Claims for U.S. unemployment benefits decreased to the lowest level in seven months, the Labor Department said.
“Europe is clearly where eyes are focused for all markets at the moment,” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty. in Sydney. “The potential for it to knock global growth prospects significantly is still there. We could see a pullback from these levels before heading higher again.”
Crude for December delivery declined as much as 81 cents to $98.01 a barrel in electronic trading on the New York Mercantile Exchange and was at $98.91 at 1:35 p.m. Sydney time. The contract yesterday dropped $3.77, or 3.7 percent, to $98.82, the lowest settlement since Nov. 14. Prices are down 8 cents this week. The December contract expires today. The more-active January contract slid 5 cents to $98.88.
Brent oil for January settlement was at $108.17 a barrel, down 5 cents, on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to U.S. futures was at $9.26, compared with a record $27.88 on Oct. 14.
Debt Crisis
“Oil benchmarks plunged on fears of contagion from Europe’s debt crisis,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. “Bearish sentiment in Europe outweighed solid U.S. data.”New York crude may fall next week on heightened concern that Europe’s debt crisis is spreading and will hurt demand, according to a Bloomberg News survey. Eighteen of 36 analysts forecast oil will fall through Nov. 25. Eleven predicted a gain, and seven said there will be little change. Last week, 58 percent of those surveyed projected a drop.
Applications for jobless benefits decreased 5,000 in the week ended Nov. 12 to 388,000, Labor Department figures showed yesterday. Housing starts decreased 0.3 percent to a 628,000 annual rate in October, according to the Commerce Department. The median estimate of economists surveyed by Bloomberg News called for a drop to 610,000. Building permits, a proxy for future construction, jumped 10.9 percent. (Bloomberg)
Tuesday, August 2, 2011
Oil Slides a Fourth Day as U.S. Spending Drops, Moody’s Warns of Downgrade
Oil declined for a fourth day in New York, its longest losing streak since May, as investors bet that signs of a slowing U.S. economy indicate fuel demand will falter in the world’s biggest crude-consuming nation.
Futures slipped as much as 0.7 percent today after U.S. consumer spending unexpectedly fell in June for the first time in almost two years. Moody’s Investors Service said the nation’s credit rating may be downgraded on concerns that fiscal discipline will ease, further debt reduction measures won’t be adopted and the economy will weaken. Oil is also declining after breaching a technical support level.
“The economic numbers are reflecting that demand is weak in the U.S.,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney, who predicts oil will average $100 a barrel this year. “Prices could come back to the $90 level, if not more.”
Crude for September delivery dropped as much as 69 cents to $93.10 a barrel in electronic trading on the New York Mercantile Exchange, and was at $93.42 at 1:15 p.m. Sydney time. It’s the longest losing streak since the five days of declines to May 6. The contract yesterday slid $1.10 to $93.79. Prices are 13 percent higher the past year.
Brent oil for September settlement declined 52 cents, or 0.5 percent, to $115.94 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $22.54 to U.S. futures, compared with a record close of $22.67 yesterday.
Moving Average
Oil is extending losses in New York after dropping below the 200-day moving average yesterday, a long-term support level at about $95 a barrel, according to data compiled by Bloomberg. A breach of technical support usually means prices will continue to fall. Front-month futures may decline to the lower Bollinger Band, around $91.11 today.
U.S. spending dropped 0.2 percent in June, Commerce Department figures showed yesterday. The median estimate of 77 economists surveyed by Bloomberg News called for a 0.1 percent increase. Incomes grew at the slowest pace since November.
The odds of another economic downturn are rising amid cutbacks in spending by consumers and the government, according to five of the nine members of the U.S. panel that dates recessions, the Business Cycle Dating Committee of the National Bureau of Economic Research.
The U.S. probably failed to create enough jobs in July to reduce unemployment. Payrolls probably climbed by 85,000 workers after an 18,000 increase in June that was the smallest this year, according to the median forecast of 81 economists surveyed by Bloomberg News before a Labor Department report Aug. 5.
Oil Supplies
“Commodity investors are expected to remain cautious ahead of this Friday’s U.S. jobs report,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. The bank estimates oil in New York will average $100 a barrel in the third quarter. Prices fell “as investors focused on the weaker state of the U.S. economy and softer demand,” he said.
U.S. crude stockpiles declined 3.31 million barrels last week to 354.9 million, according to the industry-funded American Petroleum Institute. An Energy Department report today may show inventories climbed 1.5 million barrels, the median of 14 analyst estimates in a Bloomberg News survey shows.
Gasoline supplies increased 2.55 million barrels to 212.2 million, the American Petroleum Institute said. The Energy Department report may show they rose 250,000 barrels, according to the Bloomberg News survey.
Negative Outlook
The American Petroleum Institute collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey. Oil-supply totals from the API and the department have moved in the same direction 71 percent of the time over the past year and 76 percent over the past four years.
The U.S., rated Aaa since 1917, was placed on negative outlook, New York-based Moody’s said in a statement today as it confirmed the rating. Moody’s warned on July 29 a negative outlook was “more likely” as lawmakers reduced the size of spending cuts being negotiated to win approval on a plan to lift the nation’s borrowing limit.
Tropical Storm Emily gained speed as it approached the Caribbean island of Hispaniola, where it should make landfall today and bring as much as 10 inches (25 centimeters) of rain, the U.S. National Hurricane Center said in an advisory released before 8 p.m. Miami time. (Bloomberg)
Futures slipped as much as 0.7 percent today after U.S. consumer spending unexpectedly fell in June for the first time in almost two years. Moody’s Investors Service said the nation’s credit rating may be downgraded on concerns that fiscal discipline will ease, further debt reduction measures won’t be adopted and the economy will weaken. Oil is also declining after breaching a technical support level.
“The economic numbers are reflecting that demand is weak in the U.S.,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney, who predicts oil will average $100 a barrel this year. “Prices could come back to the $90 level, if not more.”
Crude for September delivery dropped as much as 69 cents to $93.10 a barrel in electronic trading on the New York Mercantile Exchange, and was at $93.42 at 1:15 p.m. Sydney time. It’s the longest losing streak since the five days of declines to May 6. The contract yesterday slid $1.10 to $93.79. Prices are 13 percent higher the past year.
Brent oil for September settlement declined 52 cents, or 0.5 percent, to $115.94 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $22.54 to U.S. futures, compared with a record close of $22.67 yesterday.
Moving Average
Oil is extending losses in New York after dropping below the 200-day moving average yesterday, a long-term support level at about $95 a barrel, according to data compiled by Bloomberg. A breach of technical support usually means prices will continue to fall. Front-month futures may decline to the lower Bollinger Band, around $91.11 today.
U.S. spending dropped 0.2 percent in June, Commerce Department figures showed yesterday. The median estimate of 77 economists surveyed by Bloomberg News called for a 0.1 percent increase. Incomes grew at the slowest pace since November.
The odds of another economic downturn are rising amid cutbacks in spending by consumers and the government, according to five of the nine members of the U.S. panel that dates recessions, the Business Cycle Dating Committee of the National Bureau of Economic Research.
The U.S. probably failed to create enough jobs in July to reduce unemployment. Payrolls probably climbed by 85,000 workers after an 18,000 increase in June that was the smallest this year, according to the median forecast of 81 economists surveyed by Bloomberg News before a Labor Department report Aug. 5.
Oil Supplies
“Commodity investors are expected to remain cautious ahead of this Friday’s U.S. jobs report,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. The bank estimates oil in New York will average $100 a barrel in the third quarter. Prices fell “as investors focused on the weaker state of the U.S. economy and softer demand,” he said.
U.S. crude stockpiles declined 3.31 million barrels last week to 354.9 million, according to the industry-funded American Petroleum Institute. An Energy Department report today may show inventories climbed 1.5 million barrels, the median of 14 analyst estimates in a Bloomberg News survey shows.
Gasoline supplies increased 2.55 million barrels to 212.2 million, the American Petroleum Institute said. The Energy Department report may show they rose 250,000 barrels, according to the Bloomberg News survey.
Negative Outlook
The American Petroleum Institute collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey. Oil-supply totals from the API and the department have moved in the same direction 71 percent of the time over the past year and 76 percent over the past four years.
The U.S., rated Aaa since 1917, was placed on negative outlook, New York-based Moody’s said in a statement today as it confirmed the rating. Moody’s warned on July 29 a negative outlook was “more likely” as lawmakers reduced the size of spending cuts being negotiated to win approval on a plan to lift the nation’s borrowing limit.
Tropical Storm Emily gained speed as it approached the Caribbean island of Hispaniola, where it should make landfall today and bring as much as 10 inches (25 centimeters) of rain, the U.S. National Hurricane Center said in an advisory released before 8 p.m. Miami time. (Bloomberg)
Thursday, July 21, 2011
Oil Trades Near Highest in a Week After U.S. Labor Data, Weaker Dollar
Oil traded near the highest level in one week in New York after jobless claims in the U.S. rose more than forecast, weakening the dollar and making crude attractive for protecting against inflation.
Futures for September delivery advanced as high as $98.83 a barrel, reversing an earlier decline to $97.20, as the Labor Department said that applications for jobless benefits in the week ended July 16 increased by 10,000 to 418,000. The U.S. currency dropped 0.5 percent to $1.42 against the euro, making dollar-priced assets such as crude appear cheaper. Oil fell earlier on signs of slower manufacturing in China, the world’s largest energy consumer.
Crude for September delivery was at $98.71 a barrel in electronic trading on the New York Mercantile Exchange, up 31 cents, at 1:38 p.m. London time. It gained as much as 0.4 percent, having earlier tumbled 1.2 percent.
Brent oil for September settlement on the London-based ICE Futures Europe exchange was at $118.04 a barrel, up 11 cents.(Bloomberg)
Futures for September delivery advanced as high as $98.83 a barrel, reversing an earlier decline to $97.20, as the Labor Department said that applications for jobless benefits in the week ended July 16 increased by 10,000 to 418,000. The U.S. currency dropped 0.5 percent to $1.42 against the euro, making dollar-priced assets such as crude appear cheaper. Oil fell earlier on signs of slower manufacturing in China, the world’s largest energy consumer.
Crude for September delivery was at $98.71 a barrel in electronic trading on the New York Mercantile Exchange, up 31 cents, at 1:38 p.m. London time. It gained as much as 0.4 percent, having earlier tumbled 1.2 percent.
Brent oil for September settlement on the London-based ICE Futures Europe exchange was at $118.04 a barrel, up 11 cents.(Bloomberg)
Wednesday, July 20, 2011
Uganda’s Oil Potential Arouses International Interest
The French Ambassador to Uganda has said that the exploration for oil in the country is a key opportunity for Uganda’s government to press ahead with its development agendas.
Speaking during celebrations to mark the French National Day in Kampala, Ambassador Aline Kuster-Menager said, "Exploitation of the country’s oil resources offers a unique and key opportunity for Uganda to boost its development with new and substantial financial resources," The Monitor reported.
Recent discoveries of vast oil reserves, particularly the oil rich Albertine Graben, with estimated reserves of at least 2.5 billion barrels of oil, mean Uganda is set to become a key oil producer on a part with other African oil producing nations, such as neighboring Sudan, Angola, Nigeria and Equatorial Guinea. Some estimate place the Albertine Graben reserve as high as six billion barrels of recoverable oil.
On the basis of such reserves, government analysts estimate that Uganda will be able to support production of over 100,000 barrels of oil per day for the next two decades.
To exploit these resources, the government has signed several leasing contracts with international companies. The French energy giant Total has been granted a large chunk of the rights of exploitation in the Albertine Graben.
The Tullow Oil exploration has already confirmed Albertine Graben reserves of 2.5 billion barrels of oil. As hydrocarbons have been encountered in 51 out of the 55 wells drilled by Tullow Oil, the developments have put Uganda's discovery rate at 92.3 percent. (oilprice.com)
Speaking during celebrations to mark the French National Day in Kampala, Ambassador Aline Kuster-Menager said, "Exploitation of the country’s oil resources offers a unique and key opportunity for Uganda to boost its development with new and substantial financial resources," The Monitor reported.
Recent discoveries of vast oil reserves, particularly the oil rich Albertine Graben, with estimated reserves of at least 2.5 billion barrels of oil, mean Uganda is set to become a key oil producer on a part with other African oil producing nations, such as neighboring Sudan, Angola, Nigeria and Equatorial Guinea. Some estimate place the Albertine Graben reserve as high as six billion barrels of recoverable oil.
On the basis of such reserves, government analysts estimate that Uganda will be able to support production of over 100,000 barrels of oil per day for the next two decades.
To exploit these resources, the government has signed several leasing contracts with international companies. The French energy giant Total has been granted a large chunk of the rights of exploitation in the Albertine Graben.
The Tullow Oil exploration has already confirmed Albertine Graben reserves of 2.5 billion barrels of oil. As hydrocarbons have been encountered in 51 out of the 55 wells drilled by Tullow Oil, the developments have put Uganda's discovery rate at 92.3 percent. (oilprice.com)
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