Crude oil and refined products futures were seeing losses of between 0.5% (WTI) and 1.4% (RBOB) as of this writing in the overnight session, amid demand concerns with the spread of the coronavirus, with weakness in European shares and in US stock market index futures, as well as a further rebound in the value of the US dollar. Market participants had a quiet day before them on the economic calendar.
Reuters reports that mainland China saw its largest daily increase in coronavirus cases in over five months, with Hebei province accounting for 82 of the 85 new local infections. The Shanghai Composite fell 1.1%, whereas the Hang Seng rose 0.1% and the Nikkei rallied 2.4%. European shares were in the red across the board this morning. The FTSE 100 was down 0.5%, the CAC 40 had lost 0.6%, and the DAX was trading 0.7% weaker as of this writing. US stock market index futures were seeing similar losses, with Nasdaq futures down 0.5%, S&P 500 futures having lost 0.6%, and futures for the Dow down 0.8%. Also unsupportive for crude oil, the US dollar index was extending its rally to a third consecutive session, up 0.5%.
The complex strengthened for a fourth consecutive session on Friday despite weakness in US shares, further strength in the US dollar index, and another weekly rise in the US oil rig count. WTI gained $1.41, settling at $52.24/bbl, and Brent crude climbed $1.61 higher to close at $55.99/bbl. On the product end of the barrel, RBOB futures led the way higher with a 5.96-cent jump to $1.5423/g, while ULSD (HO) settled 4.14 cents stronger at $1.5795/g. In the New York Harbor cash market, distillate barge price differentials to spot NYMEX weakened on Friday according to Platts. ULSD barge price differentials fell by 12 points to -0.37c/g, the ULSHO differential fell by 50 points to -10.50c/g, and the HSHO differential dropped 1.25 cents lower to -15.75c/g. January propane prices strengthened along with crude. According to Platts, Mt. Belvieu LST propane prices climbed 1.500 cents higher to 86.500c/g, non-LST prices at the hub jumped 1.875 cents higher to 85.500c/g, and Conway prices shot up 2.375 cents to 83.375c/g.
Natural gas futures on NYMEX fell 2.9 cents on Friday, settling at $2.700/mmBtu with an uptick in the US rig count and a steady degree-day forecast. The latest near-term outlooks from the European Center for Medium Range Weather Forecasts continue to call for above-normal temperatures in the Midwest (especially) and in the Northeast over the next 10 days.
