Crude futures looked set to strengthen for a third consecutive session, with gains of over one percent as of this writing in the overnight amid strength in global shares. Market participants looked ahead to German consumer price inflation and US Gross Domestic Product growth data for further direction.
Asian shares strengthened last night, with the Nikkei adding 0.21%, the Shanghai Composite up 0.52%, and the Hang Seng strengthening 0.80%. Eurozone economic sentiment improved more than expected this month, per the European Commission index, which rose from a slightly downwardly revised 100.9 to 110.3, well above expectations at 103.0. The industry sentiment sub-index was much stronger than expected, while the consumer sentiment component matched expectations. In other news from the region, German unemployment held steady at 6% this month, as expected. Nevertheless, the DAX was down 0.36% as of this writing. Most European shares were up, however, with the CAC 40 up 0.44%, the FTSE 100 having strengthened 0.71%, and the Stoxx 600 0.40% higher.
Market participants were looking ahead to the preliminary April Consumer Price Index for Germany, expected to show a 1.8% yearly increase in the price level. Today’s headline item is likely the first estimate of first quarter US GDP growth, expected to come in at an annualized 6.5%, with personal consumption expenditures growth of 10.5%. These would be up from 4.3% and 2.3% in the prior quarter, respectively. Weekly US jobless claims were also due this morning ahead of the NYMEX open. Dow futures were up 0.4%, S&P 500 had strengthened 0.7%, and Nasdaq futures had climbed 1.1% higher. The US dollar index was flat.
Crude futures strengthened for a second session yesterday, posting gains of over one percent amid weakness in the dollar and strength in European shares, as well as supportive weekly EIA distillate inventories (crude and gasoline data were more neutral). WTI rose 92 cents, settling at $63.86/bbl, and Brent crude closed up 85 cents at $67.27/bbl. RBOB futures jumped 5.18 cents higher, settling at $2.0722/g, while ULSD (HO) settled 3.29 cents stronger at $1.9386/g. New York Harbor ULSD barge prices weakened by 25 points against spot NYMEX, putting the differential at -0.15c/g. The ULSHO and HSHO differentials held steady at -17.00c/g and -25.75c/g, respectively. April propane prices strengthened along with crude yesterday. According to Platts, non-LST Mt. Belvieu prices jumped 3.500 cents higher to 87.500c/g and LST prices at the hub strengthened 2.375 cents to 82.500c/g. Conway spot prices climbed 2.250 cents higher to 78.750c/g.
Natural gas futures rose 5.2 cents, settling at $2.925/mmBtu on Wednesday with a slightly tighter US market balance expectation for next week, despite a weaker two-week degree day forecast. US natural gas storage figures for the week ended April 23 are due from the EIA this morning, and analysts polled by Reuters expect to see a small injection of 11bcf. This would be well below the 66bcf injection seen last year, and also the 67bcf five-year average.
