Petroleum futures were trading in the red in the overnight session on Monday amid strength in the US dollar, despite supportive economic data releases from China and Japan and gains in European shares and in US stock market index futures. Market participants awaited Canadian housing starts and manufacturing sales data, as well as the US Empire State Manufacturing Index for further direction.
Asian stock markets closed mixed overnight with the Nikkei up 0.2% and the Hang Seng adding 0.3%, while the Shanghai Composite lost 1.0%. Japanese machinery orders rose 1.5% y/y in January, while forecasts called for a 0.2% dip. Also supportive, Chinese industrial output jumped 35.1% y/y last month, beating expectations at 30.0%. Moreover, retail sales in China rose 33.8% y/y in February, above expectations at 32.0%. European shares were trading in the black this morning with the DAX up 0.1%, while the CAC 40 and the FTSE 100 had both added 0.3%, as of this writing. US stock market index futures were seeing gains of between 0.2% (S&P f) and 0.4% (Dow f). In unsupportive news, the US dollar index was up 0.1%, its second session higher.
Petroleum futures settled mixed on Friday, featuring widening crack spreads, with strength in the US dollar and a rise of 1 in the US oil rig count likely weighing on the crude price action. WTI crude fell 41 cents to settle at $65.61/bbl and Brent crude also lost 41 cents to close at $69.22/bbl. RBOB futures rose 1.20 cents, settling at $2.1500/g and ULSD (HO) futures edged up 81 points to $1.9675/g. According to Platts, the New York Harbor ULSD barge differential to NYMEX strengthened by 75 points to -0.40c/g, while HSHO and ULSHO barge differentials held steady at -20.00c/g and -16.25c/g, respectively. Also per Platts, propane prices rallied on Friday as Mt. Belvieu LST prices rose 1.375 cents to 95.000c/g and non-LST prices also strengthened by 1.375 cents to 94.625c/g. Conway spot prices jumped 2.250 cents, averaging 86.250c/g.
Natural gas futures fell 6.8 cents on Friday, settling at $2.600/mmBtu. As of this morning, the latest 1-5 day outlook based on the European model calls for mixed but mostly above-normal temperatures in the Midwest, while below-normal temperatures are expected in the Northeast. The 6-10 day forecast is less supportive with above-normal temperatures seen in both consuming regions.
