The complex was rebounding in the overnight session on Friday amid a continued blockage of the Suez Canal, which could take weeks to free, another attack by Houthi forces on Saudi Aramco facilities, as well as strength in European shares and in US stock market index futures, despite a continued rally in the US dollar. Reuters reports that Houthi forces said they launched attacks on Saudi Arabian facilities on Thursday, including Saudi Aramco facilities and military sites. Market participants awaited US international trade in goods data, personal income and outlays, a consumer sentiment report, and the weekly US rig counts from Baker Hughes for further direction.
The Ifo Business Climate index for Germany came in at 96.6 this month, beating the 93.0 expectation. Italy’s Business and Consumer Confidence Index for March was also supportive. The manufacturing confidence index rose to 101.2 (consensus at 99.4) and the consumer confidence index came in at 100.9 (100.7 was expected). On the other hand, retail sales in the UK rose 2.1% last month, missing the Econoday consensus at 2.3%. As of this writing, the CAC 40 was up 0.5%, while the FTSE 100 and the DAX had both gained 0.7%. US stock market index futures were trading flat to higher with Nasdaq futures holding steady, whereas futures for the S&P 500 were up 0.3% and Dow futures had added 0.4%. In unsupportive news, the US dollar index was up 0.3% as of this writing, its eighth session higher.
Petroleum futures tumbled yesterday, led by WTI and ULSD, amid strength in the US dollar, despite gains in US equities and a blockage of the Suez Canal. Brent crude futures fell $2.46 to close at $61.95/bbl and WTI futures dropped $2.62 to settle at $58.56/bbl. RBOB futures lost 6.81 cents to settle at $1.9209/g and ULSD (HO) tumbled 7.78 cents for a $1.7478/g settlement. The New York Harbor ULSHO barge price differential to NYMEX weakened by 40 points to -16.00c/g, according to Platts. ULSD and HSHO barge differentials held steady at -0.50c/g and -25.25c/g, respectively. Spot propane prices fell along with crude yesterday, according to Platts, with Mt. Belvieu non-LST prices losing 3.50 cents to 87.000c/g and LST prices dropping 3.00 cents to 87.000c/g as well. Conway spot prices fell 2.50 cents to 80.000c/g.
Natural gas futures rose 5.2 cents, settling at $2.570/mmBtu amid a bullish weekly storage report from the EIA. The EIA reported a 36bcf withdrawal from underground storage for the week ended March 19, well above expectations at 25bcf. The latest 1-5 day outlook from the ECMWF continues to see above-normal temperatures across the eastern half of the country. The 6-10 day forecast is more supportive with below-normal temperatures seen in the Northeast, while the Midwest is expected to see mixed but mostly below-normal temperatures as well.
