commodities News -->

Crude ends April up 25%, as OPEC supply level reaches two-year high

Investing.com | Apr 30, 2015 18:18 GMT

Investing.com -- Crude futures continued its upward swing on Thursday ending the month of April on a high note, as OPEC supply leaped to its highest level in more than two years and a lower than expected U.S. weekly buildup remained in focus.

On the New York Mercantile Exchange, WTI crude for June delivery gained 0.92 or 1.56% to 59.50 a barrel, reaching its highest level since mid-December. Texas Light Sweet futures are now on pace for their fifth consecutive weekly gain, ending April up more than 25% as concerns of oversupply slightly ease.

On the Intercontinental Exchange (ICE), brent crude for June delivery rose 0.82 or 1.25% to settle at 66.66. The spread between the U.S. and international benchmarks of crude stood at $7.16, slightly below Wednesday's level of $7.26.

Brent also closed the month up more than 18%, as OPEC oil supply reached its highest level since November, 2012. A survey by published by Reuters on Thursday found that output increased by 70,000 barrels per day to 31.04 million barrels. Increases in production in Iraq, Libya and Nigeria boosted OPEC supply levels.

Output in Saudi Arabia fell below record levels from March, but still remained above 10 million barrels per day.

WTI crude, meanwhile, continued its move toward $60, one day after the Energy Information Administration said in its weekly supply report that crude inventories increased by 1.9 million barrels for the week that ended April 24. The buildup was far below consensus estimates of a 3.3 million barrel increase.The build pushed up current U.S. crude inventories to 490.9 million barrels, the most in at least 80 years. A week earlier, crude inventories surged by 5.3 million barrels for the week that ended April 17 -- above forecasts of a 3.2 million build.

In addition, crude inventories at the Cushing Oil Hub in Oklahoma fell by 514,000 on the week, well below forecasts of a 400,000 gain. The decline marked the first draw at the largest crude storage facility in the U.S. since last November.

Energy investors turn their attention to Friday's weekly rig count from oil services firm Baker Hughes (NYSE:BHI). Last week, the number of oil rigs nationwide fell by 31 to 703 -- its lowest level since 2010. The weekly rig count has declined for 20 consecutive weeks.

WTI Crude is still down more than 43% since last June when it spiked above $105 a barrel.

Russia stocks higher at close of trade; MICEX up 1.04%

Investing.com | Apr 30, 2015 16:45 GMT

Investing.com – Russia stocks were higher after the close on Thursday, as gains in the Power, Telecoms and Manufacturing sectors led shares higher.

At the close in Moscow, the MICEX added 1.04%.

The best performers of the session on the MICEX were FSK EES (MCX:FEES), which rose 10.08% or 0.0065 points to trade at 0.0710 at the close. Meanwhile, ANK Bashneft OAO Pref (MCX:BANE_p) added 7.29% or 116.0 points to end at 1708.0 and Mostotrest (MCX:MSTT) was up 6.44% or 5.50 points to 90.90 in late trade.

The worst performers of the session were Aeroflot (MCX:AFLT), which fell 3.42% or 1.35 points to trade at 38.15 at the close. SG mechel (MCX:MTLR) declined 2.49% or 1.64 points to end at 64.30 and Rosseti ao (MCX:RSTI) was down 2.38% or 0.0128 points to 0.5260.

Rising stocks outnumbered declining ones on the Moscow Stock Exchange by 114 to 78 and 4 ended unchanged.

The Russian VIX, which measures the implied volatility of MICEX options, was down 2.52% to 35.530.

Gold for June delivery was down 2.41% or 29.20 to $1180.80 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in June rose 0.94% or 0.55 to hit $59.13 a barrel, while the June Brent oil contract rose 0.98% or 0.65 to trade at $66.48 a barrel.

USD/RUB was up 1.11% to 51.614, while EUR/RUB rose 0.09% to 57.812.

The US Dollar Index was down 0.25% at 95.07.

Gold plunges more than $30 an ounce, amid strong U.S. jobs data

Investing.com | Apr 30, 2015 17:01 GMT

Investing.com -- Gold plunged more than $30 on Thursday dropping below $1,200 an ounce, as a raft of stronger than expected U.S. economic data fueled speculation that the Federal Reserve could be more hawkish than previously indicated on the timing of an interest rate hike.

On the Comex division of the New York Mercantile Exchange, gold for June delivery fell $30.10 or 2.49% to 1,179.90. Gold futures inched up to a session-high of $1,207.40 in European afternoon trading, before encountering a freefall just after the opening of U.S. markets. With the sell-off, gold reversed all of its gains from Monday when it soared more than 2.35% to 1,203.20.

During a volatile stretch over the last week, gold futures have ended the session up or down by at least 1.35% in four of the last seven trading days. On Thursday morning, the U.S. Department of Labor said initial jobless claims for the week that ended April 25, fell by 34,000 to a 15-year low of 262,000. Analysts had forecasted a dip of 6,000 for the week. It marked the lowest level since April, 2000. The four-week average for initial claims declined by 1,250 to 283,750, slightly lower than its level a month before.

On Wednesday, the Federal Open Market Committee indicated in a rate statement that it wanted to see improvements in the labor market before it decides to raise rates for the first time in nearly a decade.

Separately, the Institute of Supply Management said its Chicago Purchasing Managers Index rose by 6.0 points for the month to 52.3, up from 46.3 in March. New orders soared 12.8 points to 55.1, its highest reading since January and largest monthly increase in more than 30 years. Analysts had expected the index to increase to 50.0 for the month of April.

U.S. personal spending, meanwhile, rose by 0.4% for the month slightly below expectations of a 0.5% gain. Analysts had forecast a 0.2% in personal spending in April.

The Fed removed all calendar references to the timing of an interest rate hike on Wednesday, opting instead to take a data-driven approach. Moving forward, the Fed said it will take into account labor market conditions, inflationary pressures and expectations of international financial developments when it decides on the timing of a rate increase.

While the Fed previously indicated that it could raise its benchmark Federal Funds Rate from the current level of zero to 0.25% in June, it became increasing likely that the U.S. Central Bank could delay the rate hike until September or December, following weeks of soft economic data since its FOMC meeting in March.

Gold, which is not attached to dividends or interest rates, struggles to compete with high-yield bearing assets in periods of rising interest rates.

Elsewhere, silver for July delivery plummeted 0.674 or 4.04% to 16.032 .

Copper for July delivery, meanwhile, rose 0.077 or 2.76% to 2.876 a pound.

STATE BANK OF INDIA ON CHART

 

280 IS VERY CRUCIAL SUPPORT IF BREACHED THEN 273.65 AND 260 IF RETURN FROM SUPPORT THEN 290.73 295.55 299 302.45 313.50

NIFTY AND BANK NIFTY ALERT !!!

 

MAJOR SUPPORT 17472.01 AND MINOR SUPPORT 17674-70 IF BREACHED THEN BIG FALL MAY COME. IF SUCCESS TO HOLD SUPPORT ON CLOSING BASIS THEN ONCE SHOULD BUY FOR 100-250 POINTS

Natural gas updates

U.S. Natural Gas Storage 90B vs. 88B forecast

Investing.com - U.S. natural gas storage rose more-than-expected last month, official data showed on Thursday.

In a report, Energy Information Administration said that U.S. Natural Gas Storage rose to a seasonally adjusted annual rate of 90B, from 63B in the preceding month.

Analysts had expected U.S. Natural Gas Storage to rise 88B last month.

MARKETS VIEW

Major Forex News Caution on Fed rate hike signal hits Asia FX, rupiah at 17-year low 

Most emerging Asian currencies extended their declines on Monday with investors expecting the U.S. Federal Reserve to indicate this week that it would start to raise interest rates from the middle of the year. The Indonesian rupiah IDR= hit a fresh 17-year low, while sluggish exports and imports in February offset a higher-thanexpected trade surplus. South Korea's won KRW=KFTC touched a 20-month low on importers' dollar demand and as offshore funds sold the currency. The Malaysian ringgit MYR=MY stayed around a six-trough on lower oil prices. he Fed meets on Tuesday and Wednesday and is widely expected to drop the word "patient" from its formal statement on the timing of its first rate increase since 2006. The removal of the word from its forward guidance is seen as an indication of the U.S. central bank's intention to raise borrowing costs soon. By contrast, many Asian central banks eased monetary policies, undermining the appeal of yields and currencies in the region. Last week, most regional units fell with South Korea and Thailand's monetary authorities unexpectedly cutting interest rates.(Fed Chair Janet) Yellen is unlikely to disappoint markets, which have much priced in the dropping of 'patient'. "It is more important what message Yellen would give after that. If she signals the Fed would weigh the timing of rate hikes further, we may see some short-covering in Asian currencies. WON The won lost as much as 0.7 percent to 1,136.6 per dollar, its weakest since July 2013. The South Korean currency pared some of its losses as exporters took the slide as an opportunity to buy on the dips for settlements. Still, investors were looking to sell the currency around 1,130 for a test of the psychological support at 1,140.The won does not have a major chart support line until 1,147.3, the 23.6 percent Fibonacci retracement of 2009- 2014 appreciation, analysts said. The rupiah slid 0.4 percent to 13,244 per dollar, its weakest since August 1998, on dollar demand from local companies. The currency pared some of losses as the central bank was spotted intervening to support the worst-performing Asian currency so far this year, traders said. Indonesia posted a trade surplus of $738.3 million in February, higher than market expectations of $520 million, data showed earlier. The surplus came as imports slid 16.24 percent, far exceeding an expected 6.80 percent drop, and exports lost 16.02 percent.The official Jakarta Interbank Spot Dollar Rate JISDOR= , which the central bank introduced in 2013 to manage exchange rate fluctuations, was fixed at 13,237 rupiah per dollar, the weakest since the launch. (Source: Investing)

 Gold moves slightly higher, amid euro rally

 Gold future prices remained relatively stable on Monday, amid a slight rally by the euro after the currency hit record-lows last week at week’s end. On the Comex division of the New York Mercantile Exchange, gold prices for April delivery rose 1.10 or 0.10% to $1,153.50 per troy ounce. Gold prices peaked at $1,163.30, before falling to $1,149.30 in U.S. morning trading.Activity was subdued on Monday, as metal traders await the Federal Open Market Committee’s (FOMC) meeting on Wednesday when the Fed could provide details on when it plans to raise interest rates. The U.S. central bank can remove a reference to remaining patient, which typically indicates that an interest rate hike could occur within the next two FOMC meetings.Gold is viewed as a safe haven for investors in periods of declining interest rates.Over the last two weeks, the U.S. dollar has skyrocketed against the euro as the start of the European Central Bank’s EUR 60 billion a month bond buying program has coincided with expectations that the Fed will raise rates. While the euro is down more than 30% against the dollar during the last 52 weeks, nearly half of the decline occurred during the previous five days of trading.On Monday, however, the euro halted its rapid decline, as it moved above 1.06 in U.S. afternoon trading. At that point, the euro gained 1.11% or 0.0114 to 1.061.The U.S. Dollar Index, which measures the strength of the greenback against six major other currencies, fell slightly 0.87 or 0.86% to 99.85. Last week, the index reached a 12-year high after cracking the historic 100 barrier.Dollar-denominated commodities such as gold become more expensive for purchasers in foreign markets as the dollar strengthens.Elsewhere, weaker than expected economic data in China softened gold’s rally. Fiscal income in China between January and February rose only 3.2%, below analysts’ expectations. Comparatively, the gain at the same point last year exceeded 8.5%.China is the second-largest purchaser of the precious metal in the world.Silver, meanwhile, increased 0.149 or 0.96% to 15.645 a troy ounce. Copper gained 0.24% or 0.006 to 2.67 a pound.Platinum futures plummeted 7.30 or 0.96% to 1,107.90, while palladium fell 6.60 or 0.84% to 782.10.

Buy PNB Around 166.00 TGT 173.00 SL 162.00

MARKETS VIEW

Oil prices wavered on Friday before falling in late trading amid a stronger than expected U.S. employment report. On the Intercontinental Exchange (ICE), brent crude oil for April delivery dropped 1.02 or 1.67% to close at 59.94 a barrel. Minutes after the U.S. Bureau of Labor Statistics (BLS) released employment data for the month of February in morning trading, brent crude futures edged up 0.7% at $60.90. Earlier in the session, brent crude was up roughly 1% ahead of the data. The U.S. added 295,000 jobs in February, according to BLS, more than 55,000 above forecasts for the month. Over the last three months, employment growth has reached a monthly average of 288,000, as the current unemployment rate has fallen to 5.5%. The strong economic data drove the U.S. dollar higher and exacerbated concerns that the Federal Reserve could raise interest rates by June. Federal Reserve Chair Janet Yellen said in testimony last month before Congress that the Fed could consider an interest rate hike on a "meeting by meeting" basis if economic conditions improved and inflation moved toward its target rate of 2%. he Fed could alter its monetary policy stance when the Federal Open Market Committee meets next on Mar. 17-18. The U.S. Dollar Index, which measures the greenback against a basket of other major currencies, soared 1.36% or 1.31 to 97.71. The euro also reached an 11-year low against the dollar for the third consecutive day, dropping 1.62% or 0.178 to 1.0850. A stronger dollar affects dollar-denominated commodities like crude making it more expensive for holders of other currencies to purchase the oil futures. WTI Crude for April delivery dropped 2.86% or 1.49 to $49.27 a barrel. Prices for West Texas Intermediate, alternatively known as Texas light sweet, dropped slightly to $50.57 a barrel shortly after the release of the employment report. While employment levels were up broadly throughout the nation, the mining sector, which encompasses the energy industry, reported a decline of 9,300 jobs from the previous month. Employment in the Oil & Gas extraction subset fell by 1,100 jobs for the month of February. This comes after 1,900 jobs were lost in Oil & Gas extraction a month earlier. Prices for WTI and brent crude also dropped slightly after the oil services firm Baker & Hughes released its weekly rig count on Friday afternoon. For the week that ended Feb. 27 oil and gas rigs in the U.S. fell by 75 to 1,192. A week earlier, the rig count dropped by 43 to 1,267. Elsewhere, tensions in the Middle East remained high. In Northeast Iraq, fighting escalated after militants from the Islamic State set fire to a number of oilfields. In Libya, nearly a dozen oilfields were closed this week amid security concerns.

NG MIDNIGHT REPORT 12.42 AM

 

© Reuters. U.S. natural gas futures rally as more snow to hit Northeast

Investing.com - U.S. natural gas prices rallied sharply on Wednesday, as a blast of frigid winter weather was expected to boost near-term fuel demand.

According to weather forecasting models, the Eastern half of the U.S. was expected to see heavy snow and freezing temperatures through March 7, in what was expected to be the last major system of the winter.

At least 30 states were under winter weather alerts on Wednesday, affecting nearly 120 million Americans.

Bullish speculators are betting that colder weather will increase demand for the heating fuel. Approximately 49% of U.S. households use natural gas for heating, according to the Energy Department.

The heating season from November through March is the peak demand period for U.S. gas consumption.

On the New York Mercantile Exchange, natural gas for delivery in April jumped 5.9 cents, or 2.19%, to trade at $2.772 per million British thermal units during U.S. morning hours, after hitting an intraday high of $2.783.

Futures were likely to find support at $2.641 per million British thermal units, the low from March 3, and resistance at $2.888, the high from February 26.

A day earlier, natural gas for delivery in April touched $2.641, the weakest level since February 10, before turning higher to end at $2.712, up 1.4 cents, or 0.52%,

Meanwhile, market participants looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the heating fuel.

The Energy Information Administration's storage report slated for release on Thursday is expected to show a withdrawal of approximately 220 billion cubic feet for the week ending February 27.

The five-year average change for the week is a decline of 116 billion cubic feet, while supplies fell by 189 billion the same time last year.

Total U.S. natural gas storage stood at 1.938 trillion cubic feet as of last week, 1.5% below the five-year average for this time of year.

Last spring, supplies were 55% below the five-year average, indicating producers have more than made up for last winter’s unusually strong demand.

Elsewhere on the Nymex, crude oil for delivery in April eased up 29 cents, or 0.57%, to trade at $50.81 a barrel, while heating oil for April delivery slumped 1.31% to trade at $1.914 per gallon.

MIDNIGHT REPORT 4 MARCH 12.32AM

* Euro little changed after drop against dollar

* Dollar rise against yen stalls on Abe adviser's comments

* Traders position for ECB bond-buying, U.S. jobs report (Adds latest prices and quotes; changes byline and dateline; previously LONDON)

By Michael Connor

NEW YORK, March 3 (Reuters) - The dollar softened on Tuesday after touching an 11-year high against an index of other major currencies as dealers awaited details of Europe's massive bond-buying program and a key U.S. jobs report.

Trading was choppy. The dollar surrendered early gains against the euro on widening interest-rate differences and was last flat against Europe's shared currency and down against the Japanese yen.

The U.S. dollar index .DXY was off 0.17 percent at 95.305 after rising to a peak of 95.570 last seen in September 2003.

"Markets are looking for the next impetus," said Dean Popplewell, chief currency strategist at Oanda in Toronto. "We may get that from the European Central Bank on Thursday or a pleasant spark on Friday from the non-farm payroll report."

Europe's central bank will finalize the details of its 1.1 trillion euro bond-buying program on Thursday and may start buying immediately afterwards.

On Friday, the U.S. government releases its often market-moving monthly employment report, which economists expect to show a robust addition of 240,000 jobs during February, according to a Reuters poll.

The euro was last little changed against the dollar at $1.1181 EUR= .

The dollar fell against the yen after an economic adviser to Japanese Prime Minister Shinzo Abe said the U.S. currency could not sustain more gains.

Etsuro Honda, whom some analysts described as a proponent of yen weakness, told the Wall Street Journal that the dollar's strength against the yen might be at a "kind of upper limit in the exchange rate's comfort zone."

The comments pulled the dollar off a three-week high of 120.27 yen JPY= hit earlier due to a spike in U.S. debt yields. It last traded at 119.55, down 0.5 percent.

The Australian dollar rose 1 percent against the greenback after the Reserve Bank of Australia opted to leave its policy rate unchanged at a record low of 2.25 percent. TheAussie jumped to a high of $0.7845 AUD=D4 before easing back to $0.7833, still up 0.8 percent on the day.

Investing.com 

- Natural gas futures were higher in U.S. trade on Tuesday.

On the New York Mercantile Exchange, Natural gas futures for April delivery traded at USD2.723 per million British thermal units at time of writing up 0.91%.

Earlier, it traded at a session high USD2.728 per million British thermal units. Natural gaswas likely to find support at USD2.649 and resistance at USD2.888.

US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.29% to trade at USD95.25.

Elsewhere on the Nymex, Crude oil for April delivery gained 1.71% to trade at USD50.44 a barrel while Heating oil for April delivery gained 2.77% to trade at USD1.9396 per gallon.

Natural gas futures higher in U.S. trade

 

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MARKETS VIEW

Oil futures rally after euro zone approves Greek bailout extension Crude oil futures shook off earlier weakness to hit the highest levels of the session on Tuesday, after euro zone finance ministers agreed on a deal to extend Greece’s bailout by four months. The Euro group approved Greece's list of reform proposals earlier in the day, paving the way for a four-month extension of the country's bailout program. On the ICE Futures Exchange in London, Brent oil for April delivery hit an intraday low of $58.13 a barrel, before recovering to trade at $60.09 during U.S. morning hours, up $1.19, or 2.01%. A day earlier, the April Brent contract sank $1.32, or 2.19%, to settle at $58.90 a barrel. Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in April rose 66 cents, or 1.33%, to trade at $50.11 a barrel after hitting a session low $48.72. A day earlier, Nymex oil tumbled $1.36, or 2.68%, to end at $49.45 as lingering concerns over a supply glut in the U.S. drove down prices. Industry research group Baker Hughes (NYSE:BHI) said Friday that the number of rigs drilling for oil in the U.S. fell by just 37 last week, the smallest weekly drop this year and compared to a decline of 84 rigs in the preceding week. The number of rigs drilling for oil in the U.S. totaled 1,019, the lowest since August 2011. The number of oil rigs has declined in 16 of the last 19 weeks since hitting an all-time high of 1,609 in mid-October. However, oil supplies in the U.S. stand at the highest level in at least 80 years, indicating that cheap prices have yet to affect output. Market participants looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer. The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 4.0 million barrels in the week ended February 20. Meanwhile, the spread between the Brent and the WTI crude contracts stood at $9.98 a barrel, compared to $9.45 by close of trade on Monday. Oil prices have fallen sharply in recent months as OPEC resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Buy REC LTD  At 320 TGT 330/338 SL 316

NG MIDNIGHT REPORT 12.42 AM

 

© Reuters. U.S. natural gas futures rally as more snow to hit Northeast

Investing.com - U.S. natural gas prices rallied sharply on Wednesday, as a blast of frigid winter weather was expected to boost near-term fuel demand.

According to weather forecasting models, the Eastern half of the U.S. was expected to see heavy snow and freezing temperatures through March 7, in what was expected to be the last major system of the winter.

At least 30 states were under winter weather alerts on Wednesday, affecting nearly 120 million Americans.

Bullish speculators are betting that colder weather will increase demand for the heating fuel. Approximately 49% of U.S. households use natural gas for heating, according to the Energy Department.

The heating season from November through March is the peak demand period for U.S. gas consumption.

On the New York Mercantile Exchange, natural gas for delivery in April jumped 5.9 cents, or 2.19%, to trade at $2.772 per million British thermal units during U.S. morning hours, after hitting an intraday high of $2.783.

Futures were likely to find support at $2.641 per million British thermal units, the low from March 3, and resistance at $2.888, the high from February 26.

A day earlier, natural gas for delivery in April touched $2.641, the weakest level since February 10, before turning higher to end at $2.712, up 1.4 cents, or 0.52%,

Meanwhile, market participants looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the heating fuel.

The Energy Information Administration's storage report slated for release on Thursday is expected to show a withdrawal of approximately 220 billion cubic feet for the week ending February 27.

The five-year average change for the week is a decline of 116 billion cubic feet, while supplies fell by 189 billion the same time last year.

Total U.S. natural gas storage stood at 1.938 trillion cubic feet as of last week, 1.5% below the five-year average for this time of year.

Last spring, supplies were 55% below the five-year average, indicating producers have more than made up for last winter’s unusually strong demand.

Elsewhere on the Nymex, crude oil for delivery in April eased up 29 cents, or 0.57%, to trade at $50.81 a barrel, while heating oil for April delivery slumped 1.31% to trade at $1.914 per gallon.