Natural gas futures turn lower after U.S. supply data, hit 3-week low

        Natural gas futures erased gains to hit a three-week low during U.S. morning hours on Thursday, after a report from the U.S. Energy Information Administration showed natural gas supplies fell broadly in line with market expectations last week.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD3.888 per million British thermal units during U.S. morning trade, down 0.3% on the day.     

Prices rose by as much as 1.1% earlier in the day to hit a session high of USD3.966 per million British thermal units.

The May contract traded at USD3.942 prior to the release of the U.S. Energy Information Administration report.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended March 29 fell by 94 billion cubic feet, compared to expectations for a drop of 91 billion cubic feet.

Inventories increased by 43 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 4 billion cubic feet.

Total U.S. natural gas storage stood at 1.687 trillion cubic feet as of last week. Stocks were 779 billion cubic feet less than last year at this time and 37 billion cubic feet below the five-year average of 1.724 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 76 billion cubic feet below the five-year average, following net withdrawals of 48 billion cubic feet.

Stocks in the Producing Region were 29 billion cubic feet below the five-year average of 724 billion cubic feet after a net withdrawal of 42 billion cubic feet.

Natural gas prices were higher earlier despite weather forecasts pointing to mild temperatures in the key Northeast and Midwest markets in the next six-to-10-days.

Natural-gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts for late-winter heating demand and early-spring cooling needs.

The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.

Nymex gas prices rose to USD4.118 per million British thermal units on March 28, the strongest level since September 1, 2011, boosted by calls for colder temperatures in major consuming regions across the U.S.

But with spring's low-demand shoulder season looming, further gains may be limited.

Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.

The National Oceanic and Atmospheric Administration in its one-month temperature forecast released Sunday called for above-normal temperatures across large swaths of the U.S. in April.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May fell 1.4% to trade at USD93.13 a barrel, while heating oil for May delivery dropped 1.4% to trade at USD2.959 per gallon.

Courtesy : Investing.com

Read More

Gold pares losses after Draghi comments, dismal U.S. jobless claims

           Gold futures pared losses during U.S. morning hours on Thursday, bouncing off the lowest levels of the session following comments from European Central Bank President Mario Draghi and after data showed U.S. jobless claims hit a four-month high last week.

But gold prices struggled for upside traction due to a slightly stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.85% to trade at 83.58, the strongest level since August.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,549.45 a troy ounce during U.S. morning trade, down 0.25% on the day.

Comex gold prices fell by as much as 0.9% earlier in the session to hit a daily low of USD1,539.85 a troy ounce the weakest level since May 30, 2012.

Gold prices were likely to find support at USD1,532.75 a troy ounce, the low from May 30 and resistance at USD1,604.25, the high from April 2.

Speaking at the ECB’s post-policy meeting press conference, Draghi said that monetary policy will remain "accommodative" for as long as needed.

Draghi’s comments came after the ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.

Gold prices bounced off the lowest levels of the session after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits rose by 28,000 to a four-month high of 385,000 last week, confounding expectations for a decrease of 7,000 to 350,000.

Market players now looked ahead to Friday’s highly-anticipated U.S. monthly jobs report to further asses the strength of the country’s economy and the need for further stimulus from the Federal Reserve.

Any improvement in the U.S. economy could scale back expectations for additional easing by the Fed, boosting the U.S. dollar and weighing on dollar-denominated commodities.

Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.

Gold prices were also supported after the Bank of Japan announced that it was launching an aggressive easing program in order to achieve its 2% inflation target.

At the end of a two-day meeting, the central bank said it would double the money supply through purchases of government bonds and other measures.

Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.
Gold futures have fallen more than 3% this week as a bout of technical selling kicked in after prices broke below key support levels earlier in the week, triggering fresh sell orders amid bearish chart signals.

Gold could see further losses in the near-term, with market analysts warning of a possible move towards the USD1,530-level.

Elsewhere on the Comex, silver for May delivery shed 0.15% to trade at USD26.75 a troy ounce. Comex silver fell by as much 0.5% earlier in the session to hit a low of USD26.58 a troy ounce, the weakest level since July 24.

Meanwhile, copper for May delivery fell 0.1% to trade at a nine-month low of USD3.329 a pound.

Read More

Crude oil plunges to hit 8-day low after ECB, U.S. jobless claims

          Crude oil futures extended losses to fall to an eight-day low during U.S. morning hours on Thursday, as appetite for growth-linked assets weakened amid concerns over the fragile economic recoveries in the U.S. and the euro zone.
 
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD93.21 a barrel during U.S. morning trade, down 1.3% on the day.

New York-traded oil prices fell by as much as 1.5% earlier in the day to hit a session low of USD93.09 a barrel, the weakest level since March 22.

Nymex oil prices fell to the lowest levels of the session after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits rose by 28,000 to a four-month high of 385,000 last week, confounding expectations for a decrease of 7,000 to 350,000.

Market players now looked ahead to Friday’s highly-anticipated U.S. monthly nonfarm payrolls report to further asses the strength of the country’s economy.

Oil traders have long been taking cues from the monthly jobs report, the most-closely followed indicator of U.S. employment, because it offers insight into the economic health of the world's biggest crude oil consumer.

An improving economy is generally correlated with increased demand for oil and fuel products like gasoline.

Prices came under additional pressure after European Central Bank President Mario Draghi voiced concern over the euro zone’s economic outlook, saying that the recovery in the second half of the year is subject to “downside risks”.

Draghi’s comments came after the ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.

Oil prices were further weighed by a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.85% to trade at 83.58, the strongest level since August.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery fell 0.55% to trade at USD106.53 a barrel, with the spread between the Brent and crude contracts standing at USD13.32 a barrel.

The spread between the two contracts continued to trade near a nine-month low, due to an improving production outlook in the North Sea and amid growing concerns over the euro zone’s economic outlook.

At the same time, U.S. oil stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures, are declining as new pipelines relieve a supply glut there.

Crude inventories at Cushing fell by 287,000 barrels to 49.2 million last week, according to the EIA.
Courtesy : Investing.com

Read More

Crude-Oil Futures Rangebound Ahead of EIA Data

Crude-oil futures fell in Asian trading Wednesday, with investors limiting their activity ahead of data on stocks from the Energy Information Administration due later in the day.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $96.65 a barrel at 0600 GMT, down $0.54 in the Globex electronic session. May Brent crude on London's ICE Futures exchange fell $0.38 to $110.31 a barrel.

"Before the EIA data, prices are likely to fluctuate in a narrow range...for now, focus is on the inventories," Ker Chung Yang, investment analyst at Phillip Futures in Singapore, said by telephone.

Investors are paying special attention to signs of increased stocks in the aftermath of that shutdown of Exxon Mobil's 95,000-barrel-a-day Pegasus pipeline in the U.S., which could increase already-bloated crude levels in the middle of the country.

While the stock build is bearish for Nymex, Brent prices were buoyed immediately after the Pegasus shutdown given the potential need for cross-Atlantic supplies at the pipeline's destination in Texas, on the U.S. Gulf coast.

Analysts forecast the EIA data to show an increase of 1.5 million barrels of crude oil last week, while gasoline stocks are seen dropping by 500,000 barrels.

American Petroleum Institute data released late Tuesday for the same period showed oil stocks rose 4.7 million barrels and gasoline stocks fell 5 million barrels.

The onset of the summer driving season will likely lend support to oil prices over the next few weeks, Phillip Futures' Mr. Ker said.

"Since the summer driving season is coming closer, stocks may be declining more than expected," he said.

In a report, Mirae Asset Securities tipped an upside target of $115 a barrel for Brent over the next few weeks, saying higher demand will drive the forecast gains.

Later this week, attention will turn to U.S. jobs numbers, which are due for release Friday and represent the most important data point of the week for commodities and energy markets. Bullish data are expected following recent indicators showing a recovery in U.S. employment.

Nymex reformulated gasoline blendstock for May--the benchmark gasoline contract--fell 80 points to $3.0328 a gallon, while May heating oil traded at $3.0831, 43 points lower.

ICE gasoil for April changed hands at $926.50 a metric ton, down $3.00 from Tuesday's settlement.

Write to Clementine Wallop at clementine.wallop@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Copyright © 2013 Dow Jones Newswires

Read More

According to the Bank of Korea (BOK), country's foreign reserves reached $327.41 billion in March, up $10 million from the previous month.

SEOUL(BullionStreet): Asia's fourth largest economy, South Korea's forex reserves remained almost flat despite buying 20 tons of gold in February.

According to the Bank of Korea (BOK), country's foreign reserves reached $327.41 billion in March, up $10 million from the previous month.

Analysts said higher investment profits overshadowed the lower dollar conversion value of non-dollar assets held by the central bank.

In February, the BOK bought 20 tons of gold, raising the central bank's gold holdings to 104.4 tons valued at $4.79 billion.

Forex reserves reached $327.4 billion last month, the first fall in nine months after hitting a record high of $328.91 billion in January.

Foreign reserves consist of securities and deposits denominated in overseas currencies, along with International Monetary Fund reserve positions, special drawing rights and gold bullion.

The BOK said that the central bank logged higher management profits last month, but a stronger U.S. dollar lowered the conversion value of non-dollar assets.

Last month, the euro declined 2.4 percent to the U.S. dollar from a month earlier while the yen depreciated 2.1 percent per greenback.

But the British pound inched up 0.2 percent versus the dollar. Despite some fluctuations, the FX reserves have been on the rise, aided by the continued trade surplus and inflows of foreign capital.

South Korea remained world's seventh-largest holder of foreign exchange reserves.

Read More

Natural Gas falls as forecasts finally call for warming trend

Natural Gas.....
Investing.com - Natural gas futures moved sideways in afternoon trading on Monday after weather forecasts pointed to warmer weather patterns settling in for the eastern half of the U.S. in the coming days.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.024 per million British thermal units, up 0.01%.

The commodity hit a session low of USD3.936 and a high of USD4.043.
Weather forecasting models that called for a chilly end to winter finally pointed to a thawing trend in the coming days.

MDA Weather Services forecasted above-normal temperatures to settle in for the eastern U.S. from April 6 through April 15, which allowed for choppy trading as investors digested how unseasonably cold weather that stuck around for most of March will give way to a return to springtime weather patterns.

Bullish inventory figures released late last week by the U.S. government gave natural gas some support.

The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ended March 22 fell by 95 billion cubic feet, outpacing expectations for a drop of 87 billion cubic feet.

Total U.S. natural gas storage stood at 1,781 trillion cubic feet as of last week. Stocks were 642 billion cubic feet less than last year at this time and 61 billion cubic feet above the five-year average of 1.720 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 41 billion cubic feet below the five-year average, following net withdrawals of 73 billion cubic feet. 

Stocks in the Producing Region were 30 billion cubic feet above the five-year average of 707 billion cubic feet after a net withdrawal of 17 billion cubic feet.

U.S. Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May were down 0.25% and trading at USD96.98 a barrel, while heating oil futures for May delivery were up 0.88% at USD3.0738 per gallon.

Read More

Gold inches higher, extends U.S. gains

Gold....
Investing.com - Gold futures are trading modestly higher in the early part of Tuesday’s Asian session, extending a small gain accrued during Monday’s U.S. session. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.01% to USD1,601.95 per troy ounce in Asian trading Tuesday after settling up 0.25% at USD1,599.65 a troy ounce in U.S. trading Monday. 

Gold futures were likely to test support USD1,591.95 a troy ounce, Wednesday's low, and resistance at USD1,608.85, Wednesday's high. 

Gold moved slightly higher Monday following two mixed U.S. data points. In U.S. economic news, the Institute for Supply Management's March index fell to 51.3 from 54.2 in February. Readings above 50 indicate expansion. Analysts had expected the index to remain unchanged at 54.2. 

In another report, data showed construction spending rose 1.2% in February topping analysts’ estimates calling for a 1% increase. 

Gold traded in a tight range Monday because several major European markets were closed in observance of the Easter holiday. European fears were mostly left out of the headlines today, but traders did pay some attention to the situation in North Korea. The country has recently levied harsh threats against the U.S. and South Korea. 

Traders are also eying Friday’s non-farm payroll for March from the U.S. Economists expect the world’s largest economy to show the addition of 200,000 jobs last month following a surprisingly strong February report that showed 236,000 new jobs were created. 

Elsewhere, Comex silver for May delivery added 0.42% to USD28.060 per ounce while copper for May delivery rose 0.07% to USD3.375 per ounce. Platinum for July delivery is off 0.06% at USD1,595.45 per ounce

Read More

Oil falls following mixed U.S. data

Oil.......

Investing.com - Oil futures are trading slightly to the downside in Asia Tuesday as traders digest a pair of mixed data points from the U.S. that were delivered on Monday. 

On the New York Mercantile Exchange, light, sweet crude futures for May delivery fell 0.21% to USD96.86 per barrel in Asian trading Tuesday after settling down 0.62% at USD96.63 a barrel on Monday in the U.S. 

In U.S. economic news, the Institute for Supply Management's March index fell to 51.3 from 54.2 in February. Readings above 50 indicate expansion. Analysts had expected the index to remain unchanged at 54.2. 

In another report, data showed construction spending rose 1.2% in February topping analysts’ estimates calling for a 1% increase. The U.S. is the world’s largest oil consumer. 

Speaking of data points that could really move oil prices later this week, traders are awaiting Friday’s non-farm payroll for March from the U.S. Economists expect the world’s largest economy to show the addition of 200,000 jobs last month following a surprisingly strong February report that showed 236,000 new jobs were created. 

Elsewhere, Syria confirmed rebels there set fire to three oil wells in the eastern part of the country, causing the loss of 5,000 barrels per day in oil production and 52,000 cubic meters of natural gas per day. Media reports said the rebels have actually set nine wells ablaze, but it was not confirmed when the other six were ignited. 

The European Union country has sanctions on Syria, which is only a small oil exporter. 

Meanwhile, Brent futures for May deliver fell 0.03% to USD110.89 per barrel on the ICE Futures Exchange.

Read More

Crude Oil up as Asia digests U.S. data

              Crude Oil futures are trading slightly higher during Friday’s Asian session as traders in the region digest a mixed batch of U.S. economic data released Thursday. 

On the New York Mercantile Exchange, light, sweet crude futures rose 0.07% to USD97.20 per barrel in Asian trading Friday after settling up 0.22% at USD96.79 a barrel on Thursday in New York. 

In U.S. economic news, the Commerce Department revised its estimate of U.S. fourth-quarter GDP growth to 0.4% from 0.1%. Today’s number was the third of three estimates for the final quarter of 2012. The Labor Department said initial claims for jobless benefits rose by 16,000 to 357,000 last week. 

The March reading of the Chicago purchasing managers index fell 4.4% to 52.4%, well below the reading of 56.4% economists expected. Readings above 50% indicate expansion. The U.S. is the world’s largest oil consumer. 

With U.S. markets closed today, traders now know that oil futures closed higher for the week there by 3.8% while rising 5.6% during March. New York-traded crude finished the first quarter with a gain of 5.8%. 

Elsewhere, BP, Europe’s second-largest oil company, said it will partner with U.S. oil giants Chevron and ConocoPhillips on a new exploration project in the Shetland Islands, north of Scotland. BP thinks it can pull about 1 billion barrels from the Clair Ridge in the region. Chevron and ConocoPhillips are the second and third-largest U.S. oil companies, respectively. 

Lebanon announced 52 global oil companies are bidding for win licenses for offshore oil and gas work in that country. The companies include Chevron, Exxon Mobil and Royal Dutch Shell. 

Meanwhile, Brent crude futures for May delivery fell 0.18% to USD109.83 per barrel on the ICE Futures Exchange.

Read More

Natural Gas falls as investors bet colder temperatures will end soon

                        Natural gas futures dropped in afternoon trading on Thursday after investors bet that below-normal temperatures that have hovered over the central and eastern reaches of the U.S. will eventually give way to springtime weather patterns.

Investors shrugged off bullish supply data and sold on the notion that cooler temperatures and falling inventories have now been priced into the market.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.037 per million British thermal units, down 0.77%.

The commodity hit a session low of USD3.974 and a high of USD4.120.

Weather forecasting models that called for a chilly end to winter have repeatedly extended their frigid forecasts into late March and early April.

By Thursday, prices had risen to levels ripe for profit taking amid sentiment that eventually, colder temperatures will give way to seasonal warming trends.

Investors shrugged off bullish inventory figures on sentiment that falling stockpiles were already priced into trading strategies along with the current cold snap gripping the heavily populated eastern half of the country.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended March 22 fell by 95 billion cubic feet, outpacing expectations for a drop of 87 billion cubic feet.

Total U.S. natural gas storage stood at 1,781 trillion cubic feet as of last week. Stocks were 642 billion cubic feet less than last year at this time and 61 billion cubic feet above the five-year average of 1.720 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 41 billion cubic feet below the five-year average, following net withdrawals of 73 billion cubic feet. 

Stocks in the Producing Region were 30 billion cubic feet above the five-year average of 707 billion cubic feet after a net withdrawal of 17 billion cubic feet.

U.S. Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May were up 0.70% and trading at USD97.26 a barrel, while heating oil futures for May delivery were up 0.59% at USD3.0546 per gallon.
Courtesy : investing.com

Read More