EIA Inventory Influencing Crude OIl & Natural Gas Prices

                       Crude oil is trading at 104.00 this morning surging on Wednesday evening after the release of the official EIA inventory. WTI oil prices gained by more than 1.5 percent in yesterday’s trading session and touched a one month high after the EIA report released last night showed large draw in commercial crude stocks, while renewed fighting in Libya that kept output low boosted Brent prices. Explosions and fighting were heard in Tripoli on Wednesday, two days after gunmen stormed parliament amid a surge in violence in the OPEC member country. National output in Libya edged higher to 230,000 barrels per day (bpd), up from 210,000 bpd on Monday but still a fraction of the 1.6 million bpd the country produced before the 2011 war. Two large oilfields were still shut 10 days after the government said protests there were over.

 The EIA released its weekly inventories report showing US crude oil inventories declined by 7.3 million barrels for the week ending on 16^th May 2014. Gasoline stocks rose by nearly 1 million barrels whereas distillate inventories rose by 3.4 million barrels for the same time period. Demand for crude, particularly gasoline usually increases during the month of June-Sep as US moves along its summer driving season which starts officially on the last Monday on May month. While refinery rates were little changed last week, traders feel as we near the summer season, consumption for gasoline would increase while refinery run rates too would rise.

Crude oil reached a one-month high on Wednesday, after the government reported a large draw in commercial crude stocks, while renewed fighting in Libya that kept output low boosted Brent prices. Brent oil rose 9 cents this morning to trade at 110.56. Libya’s major western oilfields remain closed 10 days after the government said protesters blocking pipeline flows had agreed to leave, while total oil output edged higher, a spokesman for National Oil Corp said on Wednesday.

TransCanada Corp is in talks with customers about shipping Canadian crude to the United States by rail as an alternative to its Keystone XL pipeline project that has been mired in political delays, Chief Executive Russ Girdling said on Wednesday.

 China’s April crude imports from Iran more than doubled from a year ago to a record of nearly 800,000 barrels per day (bpd), pushing imports in the first four months of 2014 above levels seen before tougher Western sanctions were applied in 2012.

Natural gas is trading at 4.483 in the green this morning but remaining in a tight range ahead of today’s EIA inventory release and lack of seasonal demand ahead of summer. U.S. natural gas futures ended down almost 2 percent on expectations for a bigger than normal storage build despite forecasts for much stronger than normal cooling demand. Analysts forecast utilities added 102 billion cubic feet of gas into storage last week, well above the year-before and five-year average builds of 90 bcf. The U.S. Energy Information Administration will release its gas storage report and inventories are expected to show a surplus. - Fxempire.com

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NYMEX crude oil prices recover in Asia after HSBC China PMI

                   Crude oil prices recovered in Asia Thursday after stronger manufacturing in key importer China in May.

China's HSBC May flash manufacturing PMI rose to 49.7, well above expectations of matching the April reading of 48.1.

On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in July traded at $104.06 a barrel, bearly flat, after hitting an overnight session low of $102.58 a barrel and a high of $104.27 a barrel.

Brent crude futures on the ICE Futures Europe exchange rose 86 cents to $110.55 a barrel on Wednesday.

Overnight, crude got a bounce higher after the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 7.2 million barrels in the week ending May 16, far surpassing expectations for a build of 750,000 barrels.

Total U.S. crude oil inventories stood at 391.3 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 1.0 million barrels, compared to forecasts for a gain of 0.1 million barrels, while distillate stockpiles rose by 3.4 million barrels, compared to expectations for a drop of 0.4 million barrels.

Ongoing tensions between Russia and Ukraine remained in focus, amid concerns over a disruption to supplies from the region.

Ukraine will hold presidential elections on Sunday, and concerns persist that Russia will meddle in the voting and escalate the crisis. U.S. and European officials have already warned that Russia would face additional sanctions if Moscow disrupts the upcoming elections, including sanctions targeting the Russian economy.

Russia produced 10.4 million barrels of oil per day in 2012 and exported 7.4 million, making it the world’s second largest oil exporter after Saudi Arabia.

Meanwhile, renewed concerns over Libya's oil output further supported prices, following some of the worst violence the country has seen since the 2011 war against Muammar Qaddafi.

Libya, an OPEC member, is home to Africa’s largest oil reserves, but production there has faltered in the three years following the topple of former leader Qaddafi due to political instability and attacks on oil assets. - investing.com

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Crude oil futures - weekly outlook: May 19 - 23

                            New York-traded crude oil futures edged higher on Friday, amid indications that the U.S. economy is shaking off the effect of a weather-related slowdown over the winter, while traders continued to monitor events in Ukraine.

Nymex oil ends the week with a gain of 1.56% on U.S. optimism, Ukraine worries

On the New York Mercantile Exchange, U.S. crude oil for delivery in July advanced 0.44%, or 45 cents, on Friday to settle the week at $101.58 a barrel by close of trade.
Futures were likely to find support at $100.82 a barrel, the low from May 15 and resistance at $101.98 a barrel, the high from May 14.

For the week, Nymex oil futures rose 1.56%, or $1.59 a barrel, the first weekly gain in five weeks.

The Commerce Department reported Friday that U.S. housing starts rose 13.2% last month, the largest increase in five months and following a 2.0% increase in March.

The upbeat housing data came one day after a report from the U.S. Department of Labor showed that the number of people who filed for unemployment assistance in the U.S. last week fell to a six-year low of 297,000.

The robust data underlined the view that the U.S. economy was regaining traction after being slowed by unusually cold temperatures during the winter months.

Meanwhile, heightened tensions between Russia and Ukraine remained in focus, amid concerns over a disruption to supplies from the region.

The conflict between pro-Russian separatists and Ukrainian forces continued on Friday, stoking fears that the crisis will further develop and drag the U.S. deeper into the standoff.
Russia produced 10.4 million barrels of oil per day in 2012 and exported 7.4 million, making it the world’s second largest oil exporter after Saudi Arabia.

In the week ahead, investors will be looking to the minutes from the Federal Reserve's latest monetary policy meeting, due for release on Wednesday, for insight on the central bank's view of the economy.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in New York-traded oil futures in the week ending May 13.

Net longs totaled 311,195 contracts as of last week, up 3.75% from net longs of 299,543 in the preceding week.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery picked up 0.61%, or 66 cents, on Friday to settle at $109.75 a barrel by close of trade.

The July Brent contract rose 1.69% or $1.86 a barrel on the week, amid growing concerns over a disruption to supplies from Libya.

Meanwhile the spread between the Brent and the WTI crude contracts stood at $8.17 a barrel by close of trade on Friday, compared to $7.90 in the preceding week. - investing.com

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Crude oil futures rise on Ukraine, Libya violence

 

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                       Crude oil futures were higher on Monday, as concerns over a disruption to supplies from Russia and Libya supported prices.

On the New York Mercantile Exchange, U.S. crude oil for delivery in July advanced 0.53%, or 54 cents, to trade at $102.12 a barrel during European morning hours.

Nymex oil rose to a session high of $102.27 a barrel earlier, the most since April 24. U.S. oil futures ended Friday’s session up 0.44%, or 45 cents, to settle at $101.58 a barrel.

New York-traded oil futures were likely to find support at $100.97 a barrel, the low from May 16 and resistance at $102.34 a barrel, the high from April 24.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery picked up 0.41%, or 45 cents, to trade at $110.20 a barrel, while the spread between the Brent and U.S. crude contracts stood at $8.08 a barrel.

Heightened tensions between Russia and Ukraine remained in focus, amid concerns over a disruption to supplies from the region.

The conflict between pro-Russian separatists and Ukrainian forces continued on over the weekend, stoking fears that the crisis will further develop and drag the U.S. deeper into the standoff.
U.S. and European officials warned over the weekend that Russia would have to face additional sanctions if Moscow disrupts the upcoming presidential elections in Ukraine on May 25.
Russia produced 10.4 million barrels of oil per day in 2012 and exported 7.4 million, making it the world’s second largest oil exporter after Saudi Arabia.

Meanwhile, renewed concerns over Libya's oil output further supported prices, following some of the worst violence the country has seen since the 2011 war against Muammar Qaddafi.

Libya, an OPEC member, is home to Africa’s largest oil reserves, but production there has faltered in the three years following the topple of former leader Qaddafi due to political instability and attacks on oil assets. - investing.com

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Copper rallies to 11-week high on China stimulus hopes

          Copper prices extended last week’s gains to hit an 11-week high on Monday, as disappointing housing data from China fuelled speculation policymakers will unveil fresh stimulus measures to stabilize the economy.

On the Comex division of the New York Mercantile Exchange, copper for July delivery advanced 0.79%, or 2.5 cents, to trade at $3.172 a pound during European morning hours.
Copper rose to a session high of $3.184 a pound earlier, the most since March 7. Prices eased up 0.08%, or 0.2 cents, on Friday to settle at $3.147 a pound.

Futures were likely to find support at $3.127 a pound, the low from May 16 and resistance at $3.219 a pound, the high from March 7.

Data released over the weekend showed that house prices in China rose 6.7% in April from a year earlier, slowing from a 7.7% increase in the previous month.

The disappointing data added to hopes that China’s government will introduce fresh stimulus to combat recent signs of a slowdown in the nation’s economy.

The next slice of Chinese economic data to come out will be the HSBC preliminary purchasing managers' index for May, due on Thursday.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold for June delivery rose 0.53%, or $6.80, to trade at $1,300.20 a troy ounce, while silver for July delivery jumped 1.24%, or 23.9 cents, to trade at $19.56 an ounce.

Heightened tensions between Russia and Ukraine continued to support demand for safe haven assets.

The conflict between pro-Russian separatists and Ukrainian forces continued on over the weekend, stoking fears that the crisis will further develop and drag the U.S. deeper into the standoff.

U.S. and European officials warned over the weekend that Russia would have to face additional sanctions if Moscow disrupts the upcoming presidential elections in Ukraine on May 25. - investing.com

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