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WTI oil trading near $75, awaits latest US jobs report

oilprices — Fri, 03 Sep 2010 05:54:46 +0000

WTI oil prices are trading near the $75 mark on Friday morning in Asia as investors prepare for the latest report on the US job market, due out later today.

US Light crude oil futures for October 2010 delivery was trading at $74.70, 06.30 GMT on the NYMEX.

Gulf Oil Explosion Helps WTI Oil Advance

WTI oil futures advanced late yesterday afternoon as another Gulf of Mexico oil platform exploded, sending renewed concerns for oil spills in the region.

News that the oil platform owned by Mariner Energy exploded in the Gulf helped modestly support prices, which climbed 1.5 percent yesterday, following a 3 percent jump during the previous session.

This new crisis in the Gulf is unlikely to move WTI oil prices dramatically because the US delivers only a small amount of crude oil to the world market, experts pointed out.

Brent oil price trading firm over $76 on latest US data

oilprices — Fri, 03 Sep 2010 05:43:52 +0000

Brent oil prices open Friday’s trading session firm over the $76 mark after the latest data out of the US put a positive spin on US jobs, manufacturing and home sales.

In London, Brent crude oil futures for October 2010 delivery was at $76.50, 06.00 GMT on the ICE Futures Exchange after closing near the $77 a barrel mark late on Thursday.

Mixed Data Coming out of the US

The US Labor Department said that first time claims for unemployment benefits fell slightly last week, but are still above levels in a healthy economy.

The US National Association of Realtors said the number of Americans who signed contracts to purchase previously owned homes rose 5.2 percent in July, 19 percent below the same month in 2009 and US home sales remain at the lowest level in more than ten years

One brighter spot: Factory orders rose 0.1 percent in July, indicating some industrial growth.

Economists said that the rebound pushed Brent oil prices back to the range between $70 and $80 a barrel, which has been crude oil’s 2010 comfort zone.

Another offshore Gulf oil platform explodes into flames

oilprices — Thu, 02 Sep 2010 20:19:23 +0000

Another offshore Gulf of Mexico oil platform has exploded into flames today and it’s uncertain what the status of a potential oil leak is.

Mariner Energy, the company that owns the platform, reported a slight oil sheen that measured one nautical mile by 100 feet.

Gulf Oil Platform was Active at Time of Explosion

Mariner Energy has told the US Coast Guard that the oil production platform was active at the time of the explosion, servicing as many as seven active wells. There are a total of 13 wells connected to the platform, said Jindal.

“They are saying that they’ve shut in the production platform,” said Jindal. “If that’s true that’s a very important step but we haven’t independently verified that.”

Jindal warned of the fast-changing information flow from these types of explosions, and said will not be confident that there is no sheen or that the fire is contained until it’s independently verified.

Initial reports of the incident described the platform as being “completely engulfed in flames,” according to Jindal. He said Mariner Energy believes one of the seven active wells connected to the platform caught fire, but that all seven are now shut down.

The fire is contained but still burning, according to the Coast Guard’s Masaschi, who said that one of three firefighting vessels headed to the scene has already arrived.

According to the Coast Guard, the platform was fixed in 340 feet of water. Workers have told authorities that they started emergency shutdown procedures before evacuating.

Lee Hunt, the president of the International Association of Drilling Contractors said that this rig is different from Deepwater Horizon, which dumped millions of barrels of oil into the Gulf after exploding last spring, because it is not floating and is likely a “fixed, manned production platform.”

There are about 3,400 oil platforms operating in the Gulf, and together they pump about a third of the US domestic oil, forming the backbone of the United State’s petroleum industry.

Phone messages left for Mariner Energy were not immediately returned, but the press release from the company commented on its oil production:

“During the last week of August 2010, production from this facility averaged approximately 9.2 million cubic feet of natural gas per day and 1,400 barrels of oil and condensate.”

Brent oil price trading at $76 on good news from China

oilprices — Thu, 02 Sep 2010 07:39:44 +0000

Brent oil prices are trading up around the $76 mark in Asia on Thursday as good news from China suggests that China’s economy will not suffer a serious correction in the near future.

In London, Brent crude oil futures for October 2010 delivery was trading at $76.03, 08.00 GMT on the ICE Futures Exchange.

Good News from China Boosts Brent Oil Futures

Chinese manufacturing growth improved and auto sales rebounded in August, suggesting that Chin’a economy may not be slowing as quickly as feared.

China’s economic activity has a significant impact on the rest of the world. Even though the US runs huge trade deficits with China, the Asian giant still ranks as America’s third largest export market, taking 6.7 percent of total US exports in 2009.

“A weaker US dollar and surprising changes on product inventories have provided upward pressure for oil prices.” said oil market analyst Jason Schenker of Prestige Economics.

Earlier this week Brent oil prices fell sharply as traders sold off on concerns over the pace of the US economic recovery and growing US oil stocks.

Stock markets rally, WTI oil futures trade at $74 mark

oilprices — Thu, 02 Sep 2010 07:03:11 +0000

European and US stock markets rallied on Wednesday, up over 3 percent as WTI oil futures hold firm at the $74 a barrel mark, awaiting further direction from the US dollar.

US Light crude oil futures for October 2010 delivery was trading at $74.01, 07.30 GMT on the NYMEX after closing yesterday’s trading session higher.

ICE Dollar Index Dips Lower

The ICE Dollar Index, which tracks the US dollar against a basket of major currencies was trading down 0.90 percent at 82.453.

“A rebound in risk appetite lured wary investors out of the relative safety of US dollar denominated assets. Surging stocks and generally firmer commodities signaled an improving mood throughout global markets.” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

The US dollar declined against the euro and other major currencies yesterday after a measure of US manufacturing activity unexpectedly improved last month, adding to evidence of pockets of strength in the US economy.

Any minor good news coming out from the US is having a positive effect on the Dow Jones and in turn, WTI oil prices are following the trend higher.

Brent oil trading at $75 mark, takes lead from US economy

oilprices — Wed, 01 Sep 2010 06:34:12 +0000

Brent oil prices are having a choppy ride on the market this week as steep falls in trading yesterday had Brent futures closing under the $75 mark, with investors eyeing high US oil supplies and a slowing US economy.

In London, Brent crude oil futures for October 2010 delivery was trading at $75.24, 07.15 GMT on the ICE Futures Exchange after closing under the $75 mark in trading on Tuesday.

US Oil Stocks Set to Grow Higher

Analysts are expecting today’s report from the US Energy Information Administration to show new additions to oil and fuel stockpiles, the new data is expected to show an 800,000 barrel increase in crude oil stockpiles.

US Unemployment Figures Set to Grow Higher

Monthly US unemployment figures due out on Friday will likely be the most influential data this week. The unemployment rate in the US is expected to rise to 9.6%, from 9.5% a month ago.

US Dollar Remains Strong for Now

Meanwhile, the ICE Dollar Index, which tracks the US dollar against a trade weighted basket of currencies including the euro, was little changed at 83.017 compared with 83.104.

Brent oil futures could see a fall back down to the sub $70 price range if stock markets take a big drop and drag commodities, including oil futures lower, however the US dollar will play a big part in Brent prices for the rest of 2010.

WTI oil price levels around $72 mark after a steep fall

oilprices — Wed, 01 Sep 2010 06:15:11 +0000

WTI oil prices are trading higher on Wednesday around the $72 mark after falling nearly three percent yesterday in what many would view as a chaotic market.

US Light crude oil futures for October 2010 delivery was trading at $72.44, 07.00 GMT on the NYMEX after closing yesterday’s session at $71.92

WTI oil futures settled the month of August down nearly nine percent and with concern about a sluggish US economy, weak crude oil demand and plentiful supplies, pressure is expected to remain on oil prices.

Oil traders are beginning to doubt that oil demand will stage a substantial recovery during the second half of 2010, after first-half consumption came in lower than expected.

The value of oil to be delivered during the remainder of 2010 is starting to fall faster than oil available farther in the future, indicating a growing belief that short-term demand will remain weak. November crude-oil futures now cost $1.56 a barrel more than the October contract.

“October is losing ground to November, November is losing ground to December. That’s usually illustrative of a market that is fundamentally weak. Nobody wants the October barrels.” said Peter Donovan, an oil trader with Vantage Trading in New York.

Brent oil price skids under $76 on falling stock markets

oilprices — Tue, 31 Aug 2010 07:15:01 +0000

Brent oil futures are trading lower on Tuesday as oil prices receive a battering with Brent back under the $76 mark as stock markets in the US skid lower and Asian markets follow suit.

In London, Brent crude oil futures for October 2010 delivery was trading at $75.70, 08.00 GMT on the ICE Futures Exchange after falling nearly two percent so far today.

“The past couple of weeks have been clouded by talk of a double dip recession. Until we get some macro-news that is more consistent, these markets are going to be a bit choppy.” said Ben Westmore at National Australia Bank in Melbourne.

“The roller coaster ride continues. Markets have become hyper sensitive to economic developments.” said David Taylor, a market analyst at CMC Markets in Sydney.

ICE Brent oil futures are today trading around a $2 premium to NYMEX WTI oil futures as US oil stockpiles increase and may show a climb of 1.55 million barrels last week, further denting WTI oil prices. The US Energy Department is scheduled to release its weekly inventory report tomorrow in Washington.

WTI oil trading back under $74, ICE Dollar Index gains

oilprices — Tue, 31 Aug 2010 07:04:25 +0000

WTI oil prices are trading back under the $74 a barrel mark early on Tuesday as the ICE Dollar Index gains ground and US stock markets close back near the 10,000 mark.

US Light crude oil futures for October 2010 delivery was trading at $73.50, 07.45 GMT on the NYMEX, a massive three percent loss over today’s opening price.

The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 83.160.

The Dollar Index rose for the first day in four after breaking its downtrend on August 11th, the US dollar edged higher and consolidated gains. Support is in the 82 area and resistance in the 83.50 area.

A possible test of the 83.50 resistance may occur later this week. If this is broken, the Dollar Index could rally upto 85. This would be bearish for risky assets including oil prices and commodities.

Meanwhile, The euro is down against the US dollar as traders await new European and US data for indications on the state of the global economy.

Brent oil price firm at $77 as Asian markets move higher

oilprices — Mon, 30 Aug 2010 07:07:10 +0000

Brent oil prices are trading up early on Monday, firm around $77 a barrel as Asian stock markets get a boost from Friday’s market rally in the US and Europe and move higher.

In London, Brent crude oil futures for October 2010 delivery was trading at $76.65 a barrel, 07.45 GMT on the ICE Futures Exchange, while stock markets in Japan, Australia and China see positive territory.

But the optimism in markets could be short lived if new economic indicators show a slowdown in the US becoming entrenched, with indicators this week including data on US services, manufacturing and employment.

Brent Futures and The ICE Dollar Index

Meanwhile, the US dollar is slightly weaker on the currency markets, adding a little extra strength to oil prices. The ICE Dollar Index, which tracks the dollar against a trade weighted basket of currencies, was down 0.06% at 82.87.