Category: energy

Some disappointing economic dat points hit the tape overnight from both Europe and China, where the euro zone PMI fell below 50 and, according to an HSBC report, China is heading for a period of slower growth. There has not been very much celebratory reaction to the Greek debt deal; instead, the focus has shifted to the other troubled economies in Europe.… Read more

NYMEX crude oil prices ended the week on the rise as participants pared exposure to threats from Iran, in the run up to the long holiday weekend. Their fears were confirmed with Sunday’s announcement by Iran’s oil ministry that it had stopped selling to British and French companies.… Read more

The clouds of doom and gloom over the European conundrum appear to be breaking, coincident with ongoing concern over a looming martial conflict with Iran. This combination is behind rising crude oil prices. The rationale being that aggregate demand will remain at least stable simultaneous with a potential supply disruption.… Read more

The rising dollar is the dominant wait on marginally retreating crude oil in the overnight session, particularly given the unexpected fall in stockpiles reported by EIA. Delaying Greece’s second bailout also encouraged migration of capital to the dollar, as default or demise are increasingly being discussed.… Read more

The move off the recent low keeps pushing higher, but with little conviction. The reason is, if they were based on perception of an impending deal with Greece, market participants are showing, through price action, their skepticism. European finance ministers will hold a teleconference instead in order to urge Greece to take more effective measures to secure an aid package worth 130bn euro.… Read more

The perception of an impending deal with Greece is apparently upstaging a downgrade, and permitting continuation of an upward move commenced off the February 2nd, posting of the 95.44 low. With the Bank of Japan adopting stimulative monetary policy, a mind-set seems to be forming that policymakers will continue to print money until a sustainable recovery catches.… Read more

The Greek debt deal may address some structural issues that are central to their fiscal reality, including some measures that may actually improve competitiveness, but in the near-term, there can be little good that comes from more austerity. Greek countrymen cast their votes in the streets, a foreshadowing of more to come, perhaps.… Read more

A resolution to Greek debt woes, moved away again as EU overseers declared to Athens that the painfully wrought austerity measure did not go far enough, and giving them until next week to find an additional 325MM euro in savings before the latest tranche of aid is disbursed.… Read more

First, the inventory reports. Bearish, despite the small crude oil stock build. The demand numbers for distillates and gasoline continue to be poor, and the rise in inventories in those categories fosters the negative outlook. Otherwise, the market keeps tipping in the direction of headlines.… Read more

What was that?! Crude oil was slowing making its way to a test of technical support when a wave of buying hit. In just an hour between about 10:00AM and 11:00 AM US Eastern time, prices jumped almost $2.00 and over 100k lots traded.… Read more