Posted: January 27th, 2015 | Author: Pascal Blanc | Filed under: Energy, Oil, Russia, Saudi Arabia, USA | Tags: crude oil price, oil glut, shale oil glut, shale oil usa | No Comments »
West Texas Intermediate for March delivery decreased as much as $1.24 to $44.35 a barrel in electronic trading on the New York Mercantile Exchange and was down 57 cents to $45.02 at 12:14 p.m. London time. The contract lost 72 cents to $45.59 on Jan. 23, the lowest close since March 2009. The volume of all futures traded was 24 percent above the 100-day average for the time of day.
Brent for March settlement slid as much as $1.22, or 2.5 percent, to $47.57 a barrel on the London-based ICE Futures Europe exchange. It gained 27 cents to $48.79 on Jan. 23. The European benchmark crude traded at a premium of $3.14 to WTI.
Read the rest of WTI at $45: have we reached the bottom yet? » » »
Posted: January 22nd, 2015 | Author: Pascal Blanc | Filed under: Canada, Energy, Oil | Tags: canada interest rates, canada oil rout, canada oil sands | No Comments »
A new Conference Board of Canada report released today at the Oil and Gas Summit 2015 in Calgary estimates Canada’s economy will suffer a 0.4 per cent hit to growth this year. Lower oil prices will have sharply differing effects across Canada’s regions and industries.
The Canadian dollar fell to its weakest in five years Tuesday on speculation the more than 50% drop in oil prices since June would lead to sharp economic revisions by the central bank.
In a shock move, the Bank of Canada cut its benchmark interest rate on Wednesday to counter the effects of cheaper oil on economic growth and inflation and help guard against the risks of a housing market downturn.
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Posted: January 15th, 2015 | Author: Pascal Blanc | Filed under: Energy, propylene | Tags: propylene, propylene 2015, propylene spot price | No Comments »
In spot markets Tuesday, January and February polymer-grade propylene (PGP) were heard offered at 47.5 cents/lb Mont Belvieu pipeline basis. February was heard traded Monday at 46.25 cents/lb MtB-pipe. Spot PGP was last heard traded at that level in late November 2009.
The drop comes after one US producer nominated its January contracts for an 8 cent/lb fall, tracking declining spot prices for PGP and feedstock refinery-grade propylene (RGP).
Overall, most downward pressure has been coming from global energy markets, which have lowered cracker feedslate costs and allowed overseas derivative producers to be more competitive with US product.
Posted: January 9th, 2015 | Author: Pascal Blanc | Filed under: Commodities, Energy, ethylene, USA | Tags: ethylene price, ethylene usa, US spot ethylene price | No Comments »
US December ethylene contracts settled at a 53-month low, as per sources in ICIS. Sources confirmed the December settlement at 38.25 cents/lb ($843/tonne), down by 7.25 cents/lb from 45.50 cents/lb for November. The drop puts contracts at their lowest since settling at 37 cents/lb for the month of July 2010.
The drop in spot prices was largely fueled by declining global energy markets, which made overseas derivatives more competitive and forced US sellers to lower prices. This led to less demand for ethylene, which pushed the market longer, especially as several cracker restarts in the fourth quarter boosted supply.
Via US Dec ethylene falls 7.25 cents/lb, settles at 53-month low – ICIS
Posted: January 8th, 2015 | Author: Pascal Blanc | Filed under: Diesel, Energy, USA | Tags: diesel, diesel price, diesel usa | No Comments »
Diesel for February delivery fell 4.7% last week to end at $1.7957 a gallon Friday, the lowest closing price since Oct. 7, 2009. Prices have retreated 29% over the past nine weeks, the longest streak of down weeks ever, according to data going back to 1979.
Nationwide, the average residential heating-oil price fell 3.6 cents to $3.043 a gallon in the week ended Dec. 29, the lowest price since November 2010, according to the U.S. Energy Information Administration. The EIA expects households to spend an average of $1,722 on heating oil this winter, down 27% from last winter.
Companies that use diesel as a transportation fuel are also seeing lower costs. Melton Truck Lines in Tulsa, Okla., spends more than $150,000 a day on diesel fuel, down from about $200,000 a day in October, said Robert Ragan, Melton’s chief financial officer.
Via U.S. Diesel Prices Fall for Ninth Straight Week – WSJ
Posted: January 4th, 2015 | Author: Pascal Blanc | Filed under: Energy, Natural Gas, USA | Tags: natural gas, natural gas contract, natural gas future, natural gas USA | No Comments »
Natural gas for February delivery settled down 20.5 cents, or 6.6%, to $2.889/mmBtu on the New York Mercantile Exchange, the lowest settlement price since Sept. 24, 2012. Stockpiles now stand at 3.22 trillion cubic feet, 7.8% above last year’s level and 2.5% below the five-year average for the week.
Natural gas, known for being a volatile market, closed the year as one of the worst performing commodities. Prices spiked to $6 a million British thermal units in February as a cold winter depleted supplies. But production exceeded expectations this summer, and this winter’s weather has been moderate.
Via Natural Gas Posts 32% Loss for Year – WSJ
Posted: December 21st, 2014 | Author: Pascal Blanc | Filed under: Energy, Natural Gas, USA | Tags: natural gas contract, natural gas future, natural gas USA | No Comments »
Natural gas for January delivery ended down 17.8 cents, or 4.9%, at $3.464 a million British thermal units on the New York Mercantile Exchange, the lowest settlement since Nov. 4, 2013. With Friday’s sell-off, the contract is down 23% from its Nov. 20, 2014, close of $4.489 a million Btus.
“The delayed return of cold weather has simply curbed all buying interest,” said Teri Viswanath, natural gas strategist at BNP Paribas in New York. “Unseasonably warm weather that persisted through the month of December now necessitates extreme weather conditions to avoid a gas supply surplus.”
Via Natural-Gas Futures Fall Into Bear Market – WSJ
Posted: November 7th, 2014 | Author: Pascal Blanc | Filed under: Energy, Natural Gas, USA | Tags: natural gas, natural gas future, natural gas USA | No Comments »
Cold weather boosts consumption of natural gas, which heats about half the homes in the country. This winter’s first bout of cold weather is raising expectations for a repeat of last year, when frigid temperatures spurred record gas demand.
On Thursday, natural gas for December delivery shot up 5% to $4.404 a million British thermal units on the New York Mercantile Exchange, a four-month high.
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Posted: October 30th, 2014 | Author: Pascal Blanc | Filed under: Commodities, Energy, Oil, Saudi Arabia, Shale gas, USA | Tags: shale oil OPEC, shale oil production, shale oil saudi arabia, shale oil supply, shale oil usa | No Comments »
The massive growth of shale oil production decreased OPEC capacity in setting oil prices. In a context of limited demand growth, oil prices are currently in the $80~$85 price range and unlikely to exceed $80 next year.
The major factor in declining oil prices is to look on the supply side, says Michael Hsueh in the latest oil report published by Deutsche Bank. Libyan production increased from 0.24 million barrels/day in June to 0.78 mb/d in September. At the same time, Saudi Arabia production has plateaued around 9.7 to 9.8 mb/d. As for OPEC 30 mb/d quotas, if they were still generally followed at the beginning of the year, they were exceeded by 0.7 to 0.9 mb/d in September, said the German bank.
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Posted: October 16th, 2014 | Author: Pascal Blanc | Filed under: Agricultural, China, Commodities, Economic Indicators, Energy, Energy, Metals, Oil, Precious metals, USA | Tags: china commodities, commodities 2014, commodities glut, commodities slowdown | No Comments »
Raw materials slumped 7.1 percent this year, headed for a fourth annual decline and the longest slump since at least 1991, amid concern that economic growth is weakening as global equity markets lost $1.5 trillion last week.
Data yesterday showed that U.S. retail sales fell 0.3 percent last month on a broad pullback in consumer spending in the world’s largest economy. The Bloomberg Commodity Index (BCOM) fell as much as 0.2 percent to 116.78, the lowest level since mid-2009, and was at 116.87 at 11:25 a.m. in Singapore.
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