Petroleum futures were rallying further as of this writing in the overnight session on Tuesday, with a Texas power outage and US-Iran tensions likely supporting along with a weaker US dollar and flat to higher trade in equities. Market participants had a relatively quiet day on the economic calendar before them, with Canadian housing starts and manufacturing sales data.
WTI futures were up about 0.7% as of this writing, but crack spreads were widening as ULSD futures were up 2.8% and RBOB futures had rallied 4.3%. Some 4 million people were out of power in Texas, which produces 4.6mb/d of oil – but is also home to a huge share of the country’s refining capacity. The weather has also forced restrictions on crude oil and natural gas pipeline operators. In other supportive news, Iran called a US move to seize an oil cargo as “piracy.” The US filed a lawsuit this month to seize the cargo, alleging that Iran tried to hide its origin by transferring it to several vessels. The Iranian Foreign Ministry claims the cargo “belongs to the private sector.”
Asian shares strengthened, with the Nikkei up 1.3%, the Shanghai Composite gaining 1.4%, and the Hang Seng rallying 1.9%. European shares were just north of the unchanged mark, likely held back by a miss in Eurozone industrial production figures for December. Output fell 1.6%, whereas a shallower dip of 1.0% had been expected. US stock market index futures were up, with S&P 500 and Nasdaq futures both up 0.5% and Dow futures up 0.6% as of this writing. Also supportive for crude, the US dollar index was down 0.35%.
After a slight dip on Thursday, petroleum futures resumed their rally on Friday, posting gains of between 1.5% (ULSD) and 2.6% (RBOB) amid strength in equities. Brent closed $1.29 higher at $62.43/bbl and WTI settled $1.23 stronger at $59.47/bbl. RBOB futures jumped 4.23 cents higher to settle at $1.6925/g, while ULSD (HO) settled at $1.7714/g, up 2.68 cents. New York Harbor ULSD, ULSHO, and HSHO barge price differentials to spot NYMEX were steady on Friday, at +0.20c/g, -11.25c/g, and -20.25c/g, respectively. Propane prices strengthened along with crude futures, featuring a narrowing of the reversed north-south spread. Per Platts, Mt. Belvieu non-LST prices jumped 3.500 cents higher to 88.750c/g and LST prices at Mt. Belvieu shot up 4.375 cents to 89.500c/g, while Conway prices added one cent, reaching 91.500c/g.
Natural gas futures added 4.4 cents on Friday, settling at $2.912/mmBtu with a drop in the rig count and tighter US market balance expectation for the following week, despite a downgrade to the two-week heating degree day forecast. As of this morning, the latest 1-5 day outlook based on the European model remains supportive, with the central part of the country seen experiencing double-digit deviations below normal temperatures, and with below-normal temperatures expected along the East Coast. The 6-10 day forecast, however, sees some warmer weather coming in near the Great Lakes and in the Northeast.
flat to higher trade in equities. Market participants had a relatively quiet day on the economic calendar before them, with Canadian housing starts and manufacturing sales data.
WTI futures were up about 0.7% as of this writing, but crack spreads were widening as ULSD futures were up 2.8% and RBOB futures had rallied 4.3%. Some 4 million people were out of power in Texas, which produces 4.6mb/d of oil – but is also home to a huge share of the country’s refining capacity. The weather has also forced restrictions on crude oil and natural gas pipeline operators. In other supportive news, Iran called a US move to seize an oil cargo as “piracy.” The US filed a lawsuit this month to seize the cargo, alleging that Iran tried to hide its origin by transferring it to several vessels. The Iranian Foreign Ministry claims the cargo “belongs to the private sector.”
Asian shares strengthened, with the Nikkei up 1.3%, the Shanghai Composite gaining 1.4%, and the Hang Seng rallying 1.9%. European shares were just north of the unchanged mark, likely held back by a miss in Eurozone industrial production figures for December. Output fell 1.6%, whereas a shallower dip of 1.0% had been expected. US stock market index futures were up, with S&P 500 and Nasdaq futures both up 0.5% and Dow futures up 0.6% as of this writing. Also supportive for crude, the US dollar index was down 0.35%.
After a slight dip on Thursday, petroleum futures resumed their rally on Friday, posting gains of between 1.5% (ULSD) and 2.6% (RBOB) amid strength in equities. Brent closed $1.29 higher at $62.43/bbl and WTI settled $1.23 stronger at $59.47/bbl. RBOB futures jumped 4.23 cents higher to settle at $1.6925/g, while ULSD (HO) settled at $1.7714/g, up 2.68 cents. New York Harbor ULSD, ULSHO, and HSHO barge price differentials to spot NYMEX were steady on Friday, at +0.20c/g, -11.25c/g, and -20.25c/g, respectively. Propane prices strengthened along with crude futures, featuring a narrowing of the reversed north-south spread. Per Platts, Mt. Belvieu non-LST prices jumped 3.500 cents higher to 88.750c/g and LST prices at Mt. Belvieu shot up 4.375 cents to 89.500c/g, while Conway prices added one cent, reaching 91.500c/g.
Natural gas futures added 4.4 cents on Friday, settling at $2.912/mmBtu with a drop in the rig count and tighter US market balance expectation for the following week, despite a downgrade to the two-week heating degree day forecast. As of this morning, the latest 1-5 day outlook based on the European model remains supportive, with the central part of the country seen experiencing double-digit deviations below normal temperatures, and with below-normal temperatures expected along the East Coast. The 6-10 day forecast, however, sees some warmer weather coming in near the Great Lakes and in the Northeast.