Market Journal

Fed plan rallies oil prices

November 8, 2010

The December crude contract climbed 0.9% Nov. 3 in the New York Mercantile Exchange when Federal Reserve Chairman Ben Bernanke announced plans to buy $600 billion of Treasuries over the next 8 months to stimulate the US economy, triggering a sharp drop in the US dollar.

Oil traded 'sideways' in October

November 1, 2010

Despite breaking above $80/bbl, oil price movements mostly traded sideways in late October.

Late-month crude prices whipsawed

October 25, 2010

October started with promise as the November crude contract climbed to a near 8-week high of $81.58/bbl Oct. 1 on the New York Mercantile Exchange when positive consumer spending data diminished fear of a double-dip recession.

Horsnell: 2010 oil demand is strong

October 18, 2010

This year is set to be the second strongest for oil demand growth in the last 30 years with the additional call on liquids production from the Organization of Petroleum Exporting Countries to surpass 1.2 million b/d, with another strong increase expected in 2011, said Paul Horsnell at Barclays Capital in London.

Crude prices climb in early October

October 11, 2010

The price of front-month crude oil rose Oct. 8, its sixth increase within eight sessions in the New York market.

Crude starts October at 7-week high

October 4, 2010

After weeks of vacillating around $75/bbl, the price of crude climbed to consecutive new 7-week highs the last two September sessions and the first trading day in October, closing at the end of the week above $80/bbl for the first time since Aug. 10.

QE2 'myth' may hurt oil market

September 27, 2010

A “general Wall Street myth” that a second round of “quantitative easing” of the economy (QE2) should prove bullish for oil through the lower dollar index may prove bearish instead.

'Armada' of Asian gas oil

September 20, 2010

An “armada” of gas oil will soon sail from Asia to Europe in response to “genuine demand” created by sustained low runs due to poor margin performance by European refineries at a time of a growing surplus in Asia, said analysts at Deutsche Bank.

Little change in crude prices

September 13, 2010

There has been little change in absolute prices for crude that have settled at similar monthly averages, “while the main current dynamics relate to spreads,” said Paul Horsnell, managing director and head of commodities research at Barclays Capital in London.

August rough on energy

September 6, 2010

August was a strenuous month for both commodity and equity markets—in fact, the worst August for the Dow Jones Industrial Average in 9 years, said analysts in the Houston office of Raymond James & Associates Inc.

Softening economy lowers oil prices

August 30, 2010

Amid indications the economic recovery is slowing, the front-month crude contract price fell for five consecutive sessions to an 11-week low of $71.63/bbl Aug. 24 on the New York Mercantile Exchange.

Policy changes pending for ethanol

August 23, 2010

The ethanol industry this fall will face important policy challenges for which it may not be fully prepared, including expiration of supportive tax credits and tariffs and a government decision whether to expand the amount of biofuel allowed in gasoline, said analysts at FBR Capital Markets & Co., Arlington, Va.

Hurricanes may no longer boost gas prices

August 16, 2010

With natural gas operations shifting onshore, and offshore increasingly “hardened“ by hurricanes, the historical tendency for storms to give gas prices an automatic boost may be over, said Adam Sieminski, chief energy economist, Deutsche Bank, Washington, DC.

Light product stocks grew through July

August 9, 2010

Light product inventories—gasoline, distillate, and jet fuel—grew for 9 consecutive weeks through the end of July “due to high production levels, increased gasoline imports (including blend stocks), and lackluster demand,” said Jacques Rousseau, managing director of equity research, RBC Capital Markets, Reston, Va.

Oil price 'stuck' in recent range

August 2, 2010

Intraday oil futures prices were “stuck” between $75-80/bbl for the previous 10 trading days, Paul Horsnell at Barclays Capital, London, reported July 28.

Refining capacity near 3-year high

July 26, 2010

US refineries were operating at 91.5% of capacity in the week ended July 16—“the highest level since August 2007” and up from 90.5% the previous week, said Jacques H. Rousseau, an analyst at RBC Capital Markets under the Royal Bank of Canada.

Economic fears slow price rise

July 19, 2010

The front–month crude contract jumped 5.5% in the week ended July 9 to $76.09/bbl in the New York market on mixed demand forecasts and an unexpected drop in US inventories.

Crude price waffles in early July

July 12, 2010

Oil topped $75/bbl July 8 in the New York market on renewed optimism for economic recovery and a larger-than-expected drop in US crude inventories, down 5 million bbl to 358.2 million bbl in the week ended July 2, said the US Energy Information Administration.

Low-key hurricane signals active season

July 6, 2010

Alex, the first hurricane of 2010, came ashore on Mexico’s Tamaulipas coast in a Category 2 status June 30, flooding Matamoras but scarcely impacting Brownsville or other parts of South Texas just across the border.

Global oil demand to outgrow decline

June 28, 2010

Global oil demand will grow more this year than it declined in 2009 and will surpass the 2007 record high “at least 2 years earlier than consensus projections” a year ago, said Paul Horsnell, managing director and head of commodities research at Barclays Capital.

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