Category: energy

The industrial West’s ally, Saudi Arabia, has assured its customers that it will be working with other producers to “restore oil prices to levels that are fair for producers, consumers and the oil industry.” Sounds familiar. Even though API reported a surprise contraction in crude oil stocks of 1.4MM bbls, participants seem more enthralled by addition supplies from the OPEC kingpin.… Read more

Crude oil extended Friday’s gains yesterday, even though Saudi Arabia may increase output. Rising prices of late caught the attention of IMF managing director Largarde who warned that they are “ a new threat that could derail the recovery of the global economy which is not yet out of the danger zone.… Read more

Price action so far, seems to be questioning Friday’s surge. Actually, it should not have surprised with what has been in the wind, of late. Passing the weekend though with no movement on Iran is no doubt prompting some relief selling, as well as registering ongoing concern over Europe’s maladies.… Read more

The narrow range, low volume and falling open interest of recent days was punctuated yesterday by some dramatic headlines. News of the possibility that there was a US-UK agreement on the release of strategic reserves sent WTI prices to a low not seen in over three weeks.… Read more

Participants considered a rising dollar and swelling stocks enough to push settlement below 106.00 for the first time in a week. The principal cue was signaled by the Federal Reserve which upgraded its economic outlook, providing foreign exchange traders a window to push the dollar to an 11-month high against the yen and a one-month peak against the euro.… Read more

Favorable US retails sales, and the Federal Reserve’s decision to leave well enough alone were apparently just enough of a salve to participants worried about aggregate demand. From the belly of the beast also came news that German analyst and investor sentiment jumped in March to its highest since June 2010.… Read more

Even though yesterday’s range was 2.18, most price action was confined to a much narrower one during the NYMEX session, where most of the volume is posted. The market has now established another precarious equilibrium as macroeconomic data, events in Europe and the Iran conundrum momentarily balance.… Read more

Positive US jobs data on Friday, was countered by the anxiety of market participants awaiting news from ISDA on whether or not the Greek bond swap would constitute a default It calls to mind the myriad comments by European officialdom over the past two years that it would not come to this.… Read more

WTI has mostly been in positive territory all through the Asian and European sessions. The rationales include one or all of, expectations that non-farm payrolls expanded by 210k or more shows that the US recovery is gaining momentum, Greek debt swap participation suggests the EU debt crisis is stabilizing,Israeli satellite photos and request for bunker busting ordinance from US implies…

The pendulum appears to be swinging back to the positive with a report showing that while unemployment rolls grew a bit, they are staying low enough to suggest that the job market is finding its footing, particularly when viewed against the backdrop of steadily improving month-to-month job growth from November through January.… Read more