Thursday, March 6, 2014

WTI Extends Biggest Drop in Two Months as Crude Supplies Rise

West Texas Intermediate fell for a third day, extending the biggest decline in two months, after government data showed distillate-fuel and crude stockpiles increased in the U.S., the world’s biggest oil consumer.
Futures dropped as much as 0.6 percent in New York, extending a 1.8 percent loss yesterday. Distillate inventories, including heating oil and diesel, gained last week, the Energy Information Administration reported. They were forecast to shrink in a Bloomberg News survey of analysts. Crude stockpiles climbed for a seventh week while supplies at Cushing, Oklahoma, slid to the lowest level since February 2012 with the opening of a new pipeline.
WTI for April delivery declined as much as 59 cents to $100.86 a barrel in electronic trading on the New York Mercantile Exchange, and was at $100.97 at 12:05 p.m. Sydney time. The contract dropped $1.88 to $101.45 yesterday, the lowest settlement since Feb. 14. The volume of all futures traded was about 42 percent below the 100-day average.
Brent for April settlement decreased 20 cents to $107.56 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $6.59 to WTI. The spread ended yesterday’s session at $6.31, widening for the first time in seven days.
(Source: Bloomberg)

Thursday, February 20, 2014

WTI Crude Trades Near Four-Month High as Cushing Stockpiles Drop

Jalatama ~ West Texas Intermediate oil traded near the highest price in more than four months after an industry report showed inventories fell at the delivery point for benchmark U.S. crude contracts.

Futures were little changed in New York after rising for a second day yesterday. Supplies at Cushing, Oklahoma, dropped by 1.82 million barrels last week, the American Petroleum Institute said. TransCanada Corp. began moving oil from the storage hub to Texas on the southern leg of the Keystone XL pipeline in January. Cold weather that has bolstered demand for heating fuels is forecast to return next week, according to Commodities Weather Group LLC.

WTI for March delivery was at $103.32 a barrel in electronic trading on the New York Mercantile Exchange, up 1 cent, at 11:50 a.m. Sydney time. The contract, which expires today, climbed 0.9 percent to $103.31 yesterday, the highest settlement since Oct. 8. The volume of all futures traded was about 54 percent below the 100-day average. The more-active April future was down 9 cents at $102.75.

Brent for April settlement gained 1 cent to settle at $110.47 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark crude closed at a premium of $7.63 to WTI for the same month.

Distillate inventories, including heating oil and diesel, declined by 676,000 barrels in the week ended Feb. 14, the API said in Washington yesterday. An Energy Information Administration report today is projected to show supplies declined by 2.1 million, according to the median estimate of 10 analysts in a Bloomberg News survey.
(Source: Bloomberg)

Wednesday, February 19, 2014

Gold Extends Drop From Three-Month High as Silver Snaps Rally

Gold extended a decline from the highest level in more than three months amid expectations that Federal Reserve minutes will show policy makers backing further stimulus cuts. Silver snapped the longest rally in four decades.

Bullion for immediate delivery lost as much as 0.4 percent to $1,316.91 an ounce and was at $1,318 at 10:10 a.m. in Singapore. The metal touched $1,332.45 yesterday, the highest price since Oct. 31, before dropping 0.5 percent. Gold for April delivery fell 0.5 percent to $1,317.70 an ounce on the Comex.

Gold climbed 9.3 percent this year as signs that the U.S. economy wasn’t recovering in line with expectations boosted haven demand. The Federal Reserve will release minutes of its January meeting today as investors look for the stance of policy makers after New York manufacturing data trailed estimates and U.S. factory output fell. Fed Chair Janet Yellen said on Feb. 11 that while the labor-market recovery is far from complete, stimulus would be cut in “measured steps.”

Gold fell 28 percent last year, the most since 1981, as U.S. equities advanced and investment holdings fell. The central bank said in December that it would start paring stimulus by cutting monthly bond purchases by $10 billion. It decided on another reduction of the same size last month, to $65 billion.
(Source: Bloomberg)