Market Journal

Energy markets in transition

January 18, 2010

This year will likely see a transition of energy markets back to “traditional fundamentals” of supply, demand, and inventories in place of the financial, currency, and equity market drivers that dominated 2009,” said Adam Sieminski, chief energy economist, Deutsche Bank, Washington, DC.

Cold weather saps distillates surplus

January 11, 2010

Colder weather across much of the northern hemisphere in late December and early January accelerated the burn-off of a global distillate fuel surplus.

A 'virtual' oil price gain

January 5, 2010

The front-month contract for benchmark US light, sweet crudes traded as high as $80/bbl before closing at $79.36/bbl Dec. 31, 2009, in what many described as a 78% price jump during 2009 and its biggest surge since 1999 on the New York Mercantile Exchange.

Iraq, Nigeria oil output increasing

December 14, 2009

After years of losses because of war and revolution, oil production in Iraq and Nigeria is starting to increase.

Gas oil market out to sea

December 7, 2009

Barring an extremely cold winter and stronger-than-expected economic recovery, the phenomenon of gas oil inventories stored at sea in transport vessels will continue next year, said analysts at Deutsche Bank AG.

Crude, distillates in floating storage

November 30, 2009

Although it’s difficult to assess precisely how much crude and distillate fuel are now held in floating storage around the globe, the associated risk is increasing significantly, said Olivier Jakob at Petromatrix, Zug, Switzerland.

Crude trades in tight price range

November 16, 2009

After trading over a fairly tight range for more than 4 months on the New York Mercantile Exchange, the front-month crude contract finally broke through to the upside only to trade within an even tighter range of $79-80/bbl through 19 days in late October and early November.

DB: Markets are between recessions

November 9, 2009

The recession appears to have ended in June, “although not officially declared yet,” said analysts with Deutsche Bank AG, London.

Aramco switches from WTI benchmark

November 2, 2009

Starting with its January sales program, Saudi Aramco, national oil company of Saudi Arabia, will switch from West Texas Intermediate to an index of Gulf Coast sour crudes as the benchmark for pricing its oil for sale in the US market.

US mileage and oil-price patterns

October 26, 2009

The Department of Transportation said total miles driven in the US during August were up 0.7% from the same period in 2008, following a 2.3% gain in July.

Crude climbs to higher price range

October 19, 2009

On Oct. 14, the front-month crude contract closed above $75/bbl on the New York Mercantile Exchange for the first time since the same date in 2008, ending a long period when intraday prices were “neatly shoe-horned” into a precise $10/bbl range.

EIA adopts new methodology

October 12, 2009

The US Energy Information Administration has adopted a new methodology to show high and low ranges for its forecasts of oil and natural gas prices, as revealed in the October issue of its Short Term Energy Outlook (STEO).

Deutsche Bank alters popular commodity fund

October 5, 2009

In a recent filing with the US Securities and Exchange Commission, Deutsche Bank AG said it will change the composition of its $3.3 billion PowerShares DB Commodity Index Tracking Fund (DBC) to become more diversified and to comply with position limits imposed by the US Commodity Futures Trading Commission.

Horsnell: US policy will shift oil markets

September 28, 2009

Commodities market regulation in the US seems to be moving towards higher capital requirements and bureaucratization with relatively little impact on prices in the long run, said Paul Horsnell, managing director and head of commodities research at Barclays Capital in London. However, he warned, “Expect the center of gravity of world oil trading to move further away from US markets.”

Deloitte: Trade problems loom

September 21, 2009

Position limits being considered by the US Commodity Futures Trading Commission to eliminate “excessive” market speculation could create problems for companies trading energy commodities, said John England, managing partner for energy in Deloitte & Touche LLP’s markets consulting practice.

Surprise rally in gas prices

September 14, 2009

A four-session natural gas rally from a 7-year low culminated with a 15% jump past $3/MMbtu Sept. 10—the largest 1-day gain in almost 5 years in the New York market.

Deutsche Bank closing exchange traded note

September 8, 2009

Citing new limitations on the New York Mercantile Exchange, Deutsche Bank AG said in early September it would close and redeem its popular $425 million PowerShares DB Crude Oil Double Long Exchange Traded Note (DXO)—one of the largest leveraged commodity products in the US.

Crude finds 'comfortable' price range

August 31, 2009

The “most comfortable” range for crude prices would be $65-75/bbl—“$10/bbl below the minimum of what is the desired price in broad terms for the key producers” within the Organization of Petroleum Exporting Countries, said Paul Horsnell, a managing director and head of commodities research at Barclays Capital in London.

A century of speculation

August 17, 2009

For more than 100 years, US legislators have passed laws to reduce price volatility and prevent manipulation of commodity markets. So why should today’s “new wave of regulation” prove any better than those in the past? asks Adam Sieminski, chief energy economist, Deutsche Bank, Washington, DC.

EIA: US gas storage tops 3 tcf

August 10, 2009

The US Energy Information Administration reported natural gas in underground storage topped 3 tcf with a 66 bcf injection in the week ended July 31.

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