Energy Market Preview

Energy Market Preview by Trade the News Staff

- The EIA releases its weekly inventory data tomorrow. According to a widely followed major wire survey, crude inventories are expected to have fallen 900K barrels last week, gasoline inventories to have risen 2.5M barrels, distilalte inventories to have climbed 1.5M barrels. The refinery utilization rate is seen falling 0.5%.
- The Saudi oil minister reiterated overnight that the oil market is in healthy condition and that there is no reason to worry. He added that Saudi spare capacity will be 3M b/d in Feb.
- On the weather front, Accuweather wrote on its website that While Texas will endure its last day of dangerous ice, a blast of arctic air will freeze the Northeast and set the stage for some icy weather across the Southeast as a storm takes shape off the coast late tonight and into Thursday. As a heavy lake-effect snow event gets underway across the interior, the storm will then graze the Northeast coast with snow on Friday, a scene that could be repeated early next week.
- At 8:15 a.m. crude futures are down $0.79 at $50.44.
 
Energy Market Preview by Trade the News Staff

- The EIA releases its weekly energy inventory data today at 10:30 a.m. Crude inventories are expected to have risen 100K barrels, gasoline inventories to have climbed 2.225M barrels and distillate inventories are seen up 1.35M barrels. The refinery utilization rate is expected to have fallen 0.5%.
- The Saudi oil minister, Al Naimi- said today that his country is looking beyond 'short-term' aberrations' by carrying through an $80B program to boost output to meet global demand. Yesterday he said that OPEC spare capacity will be 3M b/d in February.
- The IEA lowered its world oil demand growth forecast for 2007 by 160,000 b/d or 1.6% to 85.77M b/d. The agency said that global oil demand growth is expected to be somewhat less buoyant in 2007 but nonetheless sustained. The agency also cut its forecast for Non-OPEC supply this year. Lastly, the IEA said that OPEC-11 output in Dec. fell 155,000 b/d to 28.76M b/d.
- On the weather front, Accuweather wrote this morning on its website that Winter is in full swing across much of the nation. After a day when snow made a rare appearance in Southern California, a developing storm will continue to bring a wintry mix to parts of the Southeast today. The storm will then brush the Northeast coast with snow and rain on Friday, when the lake-effect snow machine will crank up across the Great Lakes.
- At 8:10 a.m. crude futures are down $0.10 at $52.14
 
Energy Market Preview by Trade the News Staff

- The head of the IEA, Mandil, said today that the oil market is adequately supplied and producers should avoid reducing output further to preserve consuming countries' stocks. He added that consumers and producers are less nervous about the availability of crude oil, allowing prices to come down, and that the direction of prices is more in line with fundamentals. Separately, IEA data showed that oil consumption in the OECD fell 0.6% in 2006. It marks the first annual drop in more than 20 years.
- The outgoing Saudi Ambassador to the U.K., Prince Turki, said late yesterday that his country does not plan to sell its oil in euros and will continue to sell oil in dollars.
- The Ukraine has resumed pumping Russian crude oil through the Druzhba pipeline to Europe.
- On the weather front, Accuweather wrote today on its website that a storm system moving quickly up the New England coast today will bring heavy snow to parts of northern New England. As the storm continues to strengthen, winds will increase across the Northeast, triggering heavy lake-effect snow and producing conditions for a bitterly cold Saturday.
- At 8:10 a.m. crude futures are up $0.11 at $50.60.
 
Energy Market Preview by Trade the News Staff

- Qatar's Oil Minister said today that there is no agreement among OPEC members to hold an emergency meeting.
- The Norwegian oil minister commented today that he does not see lower oil prices in the future.
- On the weather front, Accuweather wrote on its website today that after blanketing much of the nation with snow on Sunday, a storm system will deposit freezing drizzle on parts of the mid-Atlantic and Northeast today, creating icy conditions for the morning rush.
- At 8:10 a.m crude futures are up $0.14 at $52.13.
 
Energy Market Preview by Trade the News Staff

- The EIA releases its weekly energy inventory data tomorrow. According to a major wire survey, crude inventories are expected to have risen 1.3M barrels last week, gasoline inventories to have increased 1.7M barrels and distillate inventories to have fallen 250,000 barrels. The refinery utilization rate is seen falling 0.4%.
- The Saudi Oil Minister said today following a meeting with top Japanese energy officials that Saudi Arabia will focus on providing stable oil supply to Asian countries.
- Arab Times wrote today that the U.S. is to attack Iran by April. According to the Editor-in-Chief of the paper, the attack will be lauched from the sea and Patriot missiles will guard oil producing countries in the region. A source cited by the paper said that President Bush met recently with top staff in the White House where the plan was discussed in minute detail.
- UBS lowered its 2007 forecast for WTI crude to $60 from $69.
- On the weather front, Accuweather wrote today that bitterly cold air and biting winds will make Friday the coldest day of this winter across the Northeast. The lake-effect snow machine will crank up across the Great Lakes; however, an overall lack of moisture and a storm emerging from the south will result in only light snow across the rest of the Northeast.
- At 8:10 a.m. crude futures are up $0.73 at $53.33
 
Energy Market Preview by Trade the News Staff

- The EIA releases its weekly energy inventory data today at 10:30 a.m. According to a widely followed wire survey, crude inventories are expected to have risen 1.3M barrels last week, gasoline inventories to have climbed 1.5M barrels and distillate inventories to have fallen 250,000 barrels. The refinery utilization rate is seen falling 0.4%.
- Yesterday Energy Secretary, Bodman, announced that the government will start buying 100,000 barrels a day of crude this spring to fill the SPR to capacity of 727M barrels. The SPR currently holds 691M barrels. Following the announcement, analysts said that China may be more aggressive in building up their strategic reserve.
- On the weather front, Accuweather wrote on its website today that temperatures in the Northeast will plummet on Thursday and the combination of arctic air and frigid winds will make Friday the coldest day of this winter. The biting winds will result in heavy lake-effect snow around the Great Lakes, while snow will fall east of the Appalachian Mountains.
- At 8:15 crude futures are down $0.39 at $54.67.
 
Energy Market Preview by Trade the News Staff

- The IEA chief economist, Fatih Birol, said that current oil prices of more than $50 a barrel are too high, at about five times the average cost of production.
- Oil Tanker Tracker, Oil Movements, said yesterday that it sees OPEC exports up 270,000 b/d in the four weeks to Feb. 10. A company spokesman, Roy Mason, said that OPEC compliance to its agreed Oct. cuts has been way below target and that there are no concrete signs that OPEC members are implementing a second round of cuts of 500,000 b/d, effective Feb. 1.
- U.S Department of the Interior said yesterday that it sees natural gas output in the Gulf of Mexico up 4 Tcf by 2011.
- On the weather front, accuweather wrote today on its website that bitterly cold air and biting winds will not only continue to grip the Northeast today but will be the coldest day this winter and the chilliest morning since two winters ago. After temperatures quickly moderate on Saturday, more arctic air will return for the start of the workweek.
- At 8:10 a.m. crude futures are up $0.34 at $54.57.
 
Energy Market Preview by Trade the News Staff

- OPEC's second cut of 500,000 b/d is set to take effect this week on Feb. 1.
- A Nigerian oil union has threatened a strike beginning Feb. 5.
- On the weather front, Accuweather wrote today that arctic air has returned to the East Coast in the wake of a clipper system that on Sunday brought significant snow from the Great Lakes to New Jersey. Tonight, overnight lows will plummet below the freezing mark as far south as central Florida.
- at 8:15 a.m. March crude futures are down $0.45 at $54.97.
 
Energy Market Preview by Trade the News Staff

01/30 08:16 : Energy Market Preview
- The EIA releases its weekly energy inventory data tomorrow. According to a major wire survey, crude inventories are expected to have risen 1.5M barrels, gasoline inventories to have increased 1.8M barrels and distillate inventories to have fallen 2.1M barrels. The refinery utilization rate is seen unchanged.
- WSJ reported today, citing a senior Saudi official, that Saudi Arabia is cutting oil output by an additional 158,000 b/d as part of a broader campaign by OPEC to shrink inventories and to shore up prices. The official told the newspaper that after the cut, Saudi production will have declined by about 1M b/d since last summer.
- OPEC is to cut production another 500,000 b/d starting on Thursday. Data on OPEC compliance so far has been uneven. Last week the U.K. based marine consultancy, Lloyd's Mineral Information Union, reported that OPEC exports fell below 23M b/d in December from 24M b/d. However, another tanker consultancy, Oil Movements, said it saw OPEC exports rising 270,000 b/d in January heading into February.
- On the weather front, Accuweather wrote on its website today that another clipper system will allow more snow to pile up across the Great Lakes today with light accumulating snow returning to the Interstate 95 corridor from Boston to Philadelphia late. Following this clipper, the stage will be set for a significant East Coast storm Thursday and Friday.
- At 8:15 a.m. crude futures are up $0.36 at $54.38.
 
Energy Market Preview by Trade the News Staff

- The EIA releases its weekly inventory data today at 10: 30 a.m. According to a widely followed wire survey, crude inventories are expected to have risen 1.5M barrels, gasoline inventories to have increased 1.8M barrels and distillate inventories to have fallen 2.1M barrels. The refinery utilization rate is seen remaining unchanged.
- The FT writes today that International Atomic Energy Agency is concerned that Iran may be less than two weeks away from ramping up its nuclear program. The FT says Iran may use February 11, the so-called 'Revolution Day', to announce plans to install 3,000 centrifuges to enrich uranium.
- Royal Bank of Scotland says that crude may fall to $45 a barrel by 2011 as output increases and demand growth slows. RBC wrote in a research report that the risk of severe supply disruption has receded. Furthermore, strong investment and drilling activity over the last few years will bring new supplies online, while demand growth will return to more sustainable levels.
- On the weather front, Accuweather writes on its website today that a winter storm will affect the East Coast beginning Thursday, bringing the greatest snowfall so far this winter to some places and the threat for damaging ice accumulations to others. On the heels of this system will be the harshest arctic outbreak of the year.
- At 8:10 a.m. crude futures are down $0.36 at $56.61.
 
You must log in or register to reply here.
Back
Top