Crude oil and refined products futures were seeing small losses of under one percent in the overnight session on Thursday, amid further weakness in European shares but despite further weakness in the US dollar and strength in US stock market index futures. Market participants looked ahead to weekly US initial jobless claims for further direction.
The CFLP China Manufacturing PMI weakened from 52.1 to 51.9 this month, but this beat expectations at 51.5 and indicated continued expansion in the country’s vast manufacturing sector. The Shanghai Composite gained 1.7% overnight, and the Hang Seng added 0.3%, but the Nikkei slipped 0.5% lower. European shares were losing ground this morning, with the CAC 40 off 0.1% and the FTSE 100 down 0.9% in an abbreviated trading session. The DAX was closed. US stock market index futures were just north of the unchanged mark, with Dow futures up less than 0.1%, S&P 500 futures up 0.1%, and Nasdaq futures also up 0.1%. The US dollar index was down marginally, also slightly supportive for crude. Weekly US initial jobless claims were due ahead of the NYMEX open, expected to rise from 803,000 the previous week to 830,000 in the week ended December 26.
The complex posted modest gains, featuring a widening gasoline crack as RBOB futures led the way higher following bullish weekly EIA stock data. WTI rose 40 cents, settling at $48.40/bbl, and Brent crude closed 25 cents higher at $51.34/bbl. ULSD (HO) edged up 30 points, settling at $1.4898/g (distillate stock data from EIA were bearish), whereas RBOB futures jumped 2.41 cents higher to $1.4120/g. Per Platts, New York Harbor ULSD barge prices strengthened by 10 points against NYMEX, putting the differential at zero. ULSHO and HSHO barge differentials were unchanged yesterday at -8.50c/g and -15.30c/g, respectively. Spot propane prices, per Platts, strengthened yesterday. Weekly EIA inventory figures were bullish, and Mt. Belvieu LST propane prices jumped 2.25 cents higher to 75.250c/g, non-LST prices gained 1.00 cents to hit 73.250c/g, and Conway prices strengthened 2.25 cents to 72.000c/g.
NYMEX natural gas futures slipped 2.2 cents lower to settle at $2.422/mmBtu yesterday, with a moderating two-week temperature outlook. The latest outlooks for the next 15 days based on the European model call for mostly above-normal temperatures in consuming regions throughout. The EIA is due to release its weekly natural gas storage report this morning, for the week ended December 25, and analysts polled by Reuters expect to see a 136bcf withdrawal. This would top the 102bcf five-year average and far exceed last year’s 87bcf drop in storage levels.
