here - Thomson Reuters
Transcription
here - Thomson Reuters
INSIDE OIL Wednesday, December 24, 2014 Futures (Front month) Price Net Change Pct change Asia Cash Prices NYMEX light crude $57.12 $1.86 3.3% Dubai Crude NYMEX RBOB gasoline $1.5704 $0.0354 2.3% Tokyo Naphtha (Ts) 2.0% Gasoline (92 RON) NYMEX heating oil $1.9907 $0.0393 ICE Brent crude $61.69 $1.58 2.6% Diesel (0.5 pct) ICE gas oil $550.50 $2.50 0.5% Jet-Kerosene DME Oman crude NYMEX Natgas $58.42 $3.171 $0.77 $0.027 1.3% 0.9% CHART OF THE DAY Click on the chart for full-size image Fuel Oil (180 cst) Fuel Oil (380 cst) Price $56.00 $487.50 $66.40 $72.32 $74.65 $326.10 $318.50 Net Change Differential Diff Change -$2.60 2.37 $0.46 -$24.50 -5.00 $0.00 -$2.60 14.46 $0.12 -$1.92 -0.80 $0.05 -$1.99 -0.35 $0.05 -$16.55 2.85 $0.00 -$19.65 3.05 $0.05 OIL ANALYTICS:JANUARY FUEL OIL FLOWS ASSESSMENT; 5.13 MILLION MT Arbitrage Weekly: Jan vols pegged 14.4% higher on month at 5.13 mln mt Thomson Reuters Oil Research and Forecasts have provisionally assessed January fuel oil flows into East Asia at 5.13 million mt, up 14.4% from December arrivals and well above the 2014 monthly average of 4.18 million mt. To read more click here TODAY’S MARKETS MARKET NEWS Third-quarter U.S. economic growth strongest in 11 years EXCLUSIVE-Arab OPEC sources see oil back above $70 by end Iraq's oil exports rise in December towards record Oil drop a mixed blessing for U.S. corporate results Crude oil seen stored on tankers in 2015 as contango widens POLL-U.S. crude and distillate stocks likely fell last week, gasoline up Lower oil price "double-edged sword" for energy-hungry Egypt Russian sees 2014 crude oil exports down 4.3 pct OIL: Oil rose by more than $2 a barrel on Tuesday, rallying for a second time in three days, after data showing the fastest rate of U.S. economic growth in 11 years bolstered expectations for crude demand."I was kind of surprised that we rose that much, though the GDP data was good, as fundamentally, nothing has changed much in the oil supply situation," said Joseph Posillico, senior vice president of energy futures at Jefferies in New York. FOREX: The dollar hovered at its highest in nearly nine years against a basket of major currencies after stunningly strong U.S. economic growth spurred markets to bring forward the timing of a likely hike in interest rates. The dollar index reached highs not seen since April 2006 as the greenback popped up to 120.82 yen and the euro sank to a fresh 28-month low of $1.2165. GLOBAL MARKETS: Japanese stocks rallied and the dollar stood tall thanks to surprisingly robust U.S. economic growth, helping investors head into the Christmas holidays in a more relaxed mood after the global markets turbulence of the past two weeks. Risk appetite got a helping hand from revised data showing the U.S. economy grew at a 5.0 percent clip in the third quarter, its quickest pace in 11 years and the strongest sign yet that growth has decisively shifted into higher gear. OIL ANALYTICS: ASIA SWAPS FORWARD CURVE CLICK HERE FOR TECHNICAL CHARTS EVENTS TO WATCH TODAY (GMT) U.S. MORTGAGE MARKET INDEX WEEKLY (1200) U.S. MBA PURCHASE INDEX WEEKLY (1200) U.S. INITIAL JOBLESS CLAIMS WEEKLY (1330) U.S. EIA WEEKLY CRUDE STOCKS WEEKLY (1530) U.S. EIA WEEKLY DIST. STOCKS WEEKLY (1530) U.S. EIA WEEKLY GASOLINE STK WEEKLY (1530) U.S. NAT GAS-EIA, CHANGE BCF WEEKLY (1700) INSIDE OIL December 24, 2014 OIL ANALYTICS: ASIA SWAPS FORWARD CURVE (1630 UKT) ICE BRENT FUTURES FORWARD ICE Brent Fut. Fwd Curve DUBAI SWAPS FORWARD CURVE 1M - 1Y 1M Yield 68.38 68.00 Dubai Swaps Fwd Curve 1M - 1Y 1M Yield 65.40 63.00 66.00 64.00 60.00 62.00 60.00 .12 1M 2M 3M 4M 5M 6M 7M 8M 9M 10M 57.00 .12 1Y 1M 1M 2M FO180 FOB CARGO SG FWD CURVE FO180 FOB Cargo SG Fwd Curve 3M 4M 5M 6M 7M 8M 9M 10M 1Y 1M FO3.5% BARGES ARA FORWARD CURVE 2M - 2M Yield 345.75 345.00 FO3.5% Barges ARA Fwd Curve 1M - 1Y 1M Yield 315.75 315.00 340.00 310.00 335.00 305.00 330.00 300.00 295.00 325.00 .12 .12 2M 1M 2M FO380 FOB CARGO SG FORWARD CURVE FO380 FOB Cargo SG Fwd Curve 3M 4M 5M 1M - 1Y 1M Yield 338.00 335.00 6M 7M 8M 9M 10M 4M 5M 6M 7M 8M 9M 10M 1Y 1M NAPHTHA CFR JAPAN FORWARD CURVE Naphtha CFR Japan Fwd Curve 2M - 2M Yield 532.00 530.00 330.00 520.00 325.00 510.00 320.00 500.00 .12 1M 2M 3M .12 1Y 1M 2M 2 INSIDE OIL December 24, 2014 OIL ANALYTICS: ASIA SWAPS FORWARD CURVE (1630 UKT) NAPHTHA CIF NWE FORWARD CURVE Naphtha CIF NWE Fwd Curve NAPHTHA FOB SG FWD CURVE 1M - 1Y 1M Yield 509.25 510.00 Naphtha FOB SG Fwd Curve 500.00 56.00 490.00 55.00 480.00 54.00 470.00 .12 1M 2M 3M 4M 5M 6M 7M 8M 9M 10M 53.00 .12 1Y 1M 2M ICE GO FUT. FWD CURVE ICE GO Fut. Fwd Curve 3M GO FOB CARGO SG FORWARD CURVE 2M - 2M Yield 561.00 560.00 GO FOB Cargo SG Fwd Curve 2M - 3M Yield 78.66 78.00 77.00 556.00 76.00 75.00 552.00 74.00 .12 .12 2M 2M JET FUEL FOB CARGO SG FWD CURVE Jet Fuel FOB Cargo SG Fwd Curve 2M - 3M Yield 57.13 57.00 7M - 7M Yield 80.61 80.00 78.00 76.00 .12 7M 3 3M INSIDE OIL December 24, 2014 MARKET NEWS EXCLUSIVE-Arab OPEC sources see oil back above $70 by end Third-quarter U.S. economic growth strongest in 11 years The U.S. economy grew at a 5.0 percent clip in the third quarter, its quickest pace in 11 years and the strongest sign yet that growth has decisively shifted into higher gear. Some of the strength appears to have been sustained, with other data on Tuesday showing consumer spending rising solidly in November, offsetting surprisingly weak durable goods orders. The reports further set the U.S. economy apart from the rest of the world, where growth is sputtering or activity shrinking. "Our economy is firing on most cylinders, whereas the global economy is essentially in dire need of a spark," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester Pennsylvania. In revising up its third-quarter gross domestic product estimate, the Commerce Department cited stronger consumer and business spending than previously assumed. It was the fastest pace since the third quarter of 2003. Arab OPEC producers expect global oil prices to rebound to between $70 and $80 a barrel by the end of next year as a global economic recovery revives demand, OPEC delegates said this week in the first indication of where the group expects oil markets to stabilise in the medium term. The delegates, some of which are from core Gulf OPEC producing countries, said they may not see - and some may not even welcome now - a return to $100 any time soon. Once deemed a “fair” price by many major producers, $100 a barrel crude is encouraging too much new production from high cost producers outside the exporting group, some sources say. But they believe that once the breakneck growth of high cost producers such as U.S. shale patch slows and lower prices begin to stimulate demand, oil prices could begin finding a new equilibrium by the end of 2015 – even in the absence of any production cuts by OPEC, something that has been repeatedly ruled out. Iraq's oil exports rise in December towards record Oil drop a mixed blessing for U.S. corporate results Iraq's oil exports are rising in December towards a record high, according to loading data and industry sources, as OPEC's second-largest producer pumps more despite oil prices trading near a five-year low. The increase will add to ample supplies and may worry other members of the Organization of the Petroleum Exporting Countries unable to expand exports and suffering a drop in oil income after a near 50 percent drop in prices since June. Exports from Iraq's southern terminals have averaged at least 2.60 million barrels per day (bpd), according to shipping data for the first 23 days of December tracked by Reuters. Two industry sources who monitor the exports had similar estimates. "This is looking very strong - massive volumes," said an industry source, who saw southern flows rise as high as 2.80 million bpd for part of the month. The sharp decline in oil prices has taken a toll on earnings estimates for the U.S. energy sector, but investors expecting a benefit to other sectors of the market may be disappointed, Thomson Reuters research shows. Certain retailers have shown improvement in results as fuel costs have declined, while industrials and materials companies tend to show their results decline even as energy prices fall. Airlines, generally thought of as a possible beneficiary of lower fuel costs, show little correlation between that decline and their results, Thomson found. The oil rout has been responsible for the sharp fall in energy sector estimates. S&P energy earnings are seen shrinking by 19.5 percent, while on Oct. 1, a rise of 6.4 percent was expected. POLL-U.S. crude and distillate stocks likely fell last week, gasoline up Crude oil seen stored on tankers in 2015 as contango widens U.S. commercial crude oil and distillate inventories were forecast to have fallen in the week ended Dec. 19, while gasoline stocks inched up, an expanded Reuters survey showed on Tuesday. The poll of seven analysts - taken ahead of weekly inventory reports from the American Petroleum Institute (API), an industry group, and the U.S. Department of Energy's Energy Information Administration (EIA) - forecast crude stocks fell 2.3 million barrels, on average, last week. Stocks of distillates, which include heating oil and diesel fuel, dropped 900,000 barrels last week, and gasoline inventories inched up 600,000 million barrels. U.S. crude stocks fell less than expected in the week ended Dec. 12, while gasoline stocks increased and distillate inventories declined, data from the Energy Information Administration showed. Global oil traders are likely to store crude in tankers next year, as a widening contango makes large-scale storage at sea profitable for the first time since the financial crisis more than five years ago, industry sources said. Oil prices have plunged nearly 50 percent since June due to a global supply glut, but the economics for storing crude at sea have mostly remained unfavourable. However, with Brent for prompt delivery dropping sharply versus later contracts in the past week, traders are increasingly requesting to lease vessels for storage. This market structure, known as contango, allows traders to lock-in profits by buying oil now and selling it forward for later delivery, as long as the costs of storage are low enough. 4 INSIDE OIL December 24, 2014 MARKET NEWS Russian sees 2014 crude oil exports down 4.3 pct Lower oil price "double-edged sword" for energy-hungry Egypt Russia's oil exports are expected to fall by 4.3 percent this year, Energy Minister Alexander Novak said on Tuesday, citing preliminary data. He said oil exports will be 229 million tonnes (4.6 million barrels per day), while natural gas production will fall by 4 percent to 641 billion cubic metres (bcm) and exports by 6.7 percent to 183.3 bcm. Russia, one of the world's top oil producers, has been cutting crude exports in recent years due to rising domestic demand and refining volumes. Novak said that crude oil output will edge up 0.6 percent to 526.6 million tonnes, in what would be a post-Soviet record high. Output may edge down to 525 million tonnes next year, he added. The fall in global oil prices will cut Egypt's fuel subsidy bill but could hit the finances of oil-exporting Gulf allies who have showered it with billions of dollars in aid. Oil has dropped dramatically over the past six months, with Brent crude trading at $60.87 a barrel on Tuesday, down 47 percent from this year's peak just over $115 in June. If it stays at that level, the government expects to save 30 billion Egyptian pounds($4.2 billion) on fuel subsidies for its 86 million people in the 2014-15 fiscal year. But that is less than half the total Gulf aid it received in the last fiscal year alone. "This is a double-edged sword," said Justin Dargin, a Middle East energy expert at the Oxford Institute for Energy Studies. 5 INSIDE OIL December 24, 2014 ANALYTIC CHARTS Daily NYMEX Crude - 30 Min Daily ICE Brent Crude - 30 Min Daily ICE Gas Oil - 30 Min Daily NYMEX RBOB Gasoline - 30 Min Daily ICE Heating Oil - 30 Min Daily NYMEX Heating Oil - 30 Min (Inside Oil is compiled by Atiqul Habib in Bangalore) For more information: Learn more about our products and services for commodities professionals, click here For questions and comments on Inside Oil newsletter, click here Contact your local Thomson Reuters office, click here Your subscription: To find out more and register for our free commodities newsletters click here © 2014 Thomson Reuters. All rights reserved. This content is the intellectual property of Thomson Reuters and its affiliates. Any copying, distribution or redistribution of this content is expressly prohibited without the prior written consent of Thomson Reuters. 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