fmx | energy | connect - Morning Petrospective

Categories:

Tools

FMX 2010 Energy Expiration Calendar

follow FMX on

Data Reports:: market snapshot; energy >> crude report; energy >> options report; energy >> natural gas report; commodities >> metals report; weather >> full report

<< Energy News Wrap-up – June 15, 2010 | Energy Spot Prices – June 16, 2010 >>

Morning Petrospective – June 16, 2010

June 16 2010, 08:18

Morning Petrospective – June 16, 2010

rude oil prices were higher again in overnight trading and they opened higher Tuesday morning. Upbeat economic sentiments helped push oil prices higher, and a stronger euro and stronger equities gave investors solid reasons to buy oil. The DJIA was up nearly 214 points by the end of the day, and the euro was up 130 points to $1.2340 around 4 PM EDT.

And, this time, the rallies stuck. Crude oil prices broke $76.30 in a methodical march higher, and they closed right on top of $77.00, giving technical traders reasons to get long, stay long or cover shorts. Up until Tuesday's trading, there had been the possibility of a technical failure, and Monday's activity looked like it was just that. The fact that the bulls overcame that and went on to break above resistance on Tuesday, finishing strong, means that technical traders will now be lined up on the long side in this market. The bulls effectively sewed a silk purse from a sow's ear with the charts over the last few days (doing all the silk work on Tuesday afternoon) and they now have the momentum behind them.

Traders were also looking ahead to this week's inventory, supply and demand statistics. Most analysts are looking for a third consecutive drawdown in crude oil stocks in this week's DOE report, out tomorrow.

This week’s API report showed builds across the board in inventories, but it showed a drop in crude oil imports of 722,000 bpd to 8.708 million bpd. Crude oil stocks increased by 0.579 million bbls, distillate stocks were up 2.143 million bbls and gasoline stocks increased by 1.344 million bbls. Refinery utilization dropped 1.7% to 85.1%. Distillate demand came in at 4.291 million bpd, while gasoline demand was 9.256 million bpd.

MasterCard’s SpendingPulse released its latest statistics, for the week ended June 11^th. American gasoline demand increased by 1.4% to 9.276 million bpd. This increase came after the lowest demand for any week since February 12^th. That week (two weeks ago) had fallen 5.8% from the week before. This week, though, was stronger, and it was 130,000 bpd better than the previous week. It was 2.2% lower than a year ago, though, which was the biggest decline since April 30^th. Four-week demand was 53,000 bpd, or 0.6%, higher tghan a year ago, at 9.373 million bpd. It was the weakest four-week demand since May 21^st. Current gasoline demand is 163,000 bpd, or 1.7%, below the five-year average for this time of year, Dow Jones noted.

Gasoline demand reflects consumer demand more than any other part of the barrel. This highlights the weakness of the consumer right now, hurt by unemployment and uncertain over the future. Higher gasoline prices, which peaked in early May and took their time to fall at the pump, also contributed to demand weakness. Many expect it to rebound from here. Still, this is hardly encouraging, given ample stocks.

CLICK HERE for MARKET PRICES

FMX Newswire

FMX Newswire is an overnight news summary designed to meet the needs of professional energy traders. The content is to-the point, professional grade and not widely reported in the mainstream media. All sources are professional respected firms and newspapers.

Platts oil

Containment efforts by BP at the gushing Macondo well in the Gulf of Mexico should collect 90% of the oil in weeks, the US President said.
The cap in place over the gushing Macondo well in the Gulf of Mexico collected 5,610 b/d through the first 12 hours of June 15, BP said.
Greenland has given approval to the UK's Cairn Energy to drill the first two wells in the company's four-well program offshore Greenland.
Dragon Oil said Wednesday it would halt sales of crude oil produced by the company from fields in Turkmenistan through Iran from July.
The UK's BG Group said Wednesday it has not offered to sell its stake in the Marine gas field offshore Israel.
A construction worker at BP's 400,000 b/d Rotterdam refinery in the Netherlands has been killed after an accident involving a concrete pole

Bentek Energy

Power Burn Report - U.S. Power Burn Expected to Remain Above Normals for Next Two Weeks.
Daily Storage Range - BENTEK Storage Estimate Decreased 2 Bcf From Yesterday.
Gulf Coast Production Report - Anadarko Explains Recent Reduced Independence Hub Output.
Texas Observer (Daily) - Implied Storage Levels Poised to Slip Into a Withdrawal.
Daily Supply/Demand Balance - U.S. Supply, Demand Continue Steady Declines; Warm Temperatures On the Way

Bloomberg