Petroleum futures were trading in the red in the overnight session on Friday, after three sessions higher, amid losses in US stock market index futures, mixed trade in European equities, and strength in the US dollar. In the news this morning, OPEC oil output has risen in April amid higher supply from Iran, which offset agreed cuts by other OPEC members, according to a Reuters survey. OPEC pumped 25.17mb/d in April, up 100kb/d from last month. Market participants awaited Canadian GDP, US personal income and outlays data, the Chicago PMI, a consumer sentiment report, and the weekly US rig counts from Baker Hughes for further direction.
The Japanese unemployment rate fell from 2.9% to 2.6% last month, while forecasts called for no change. Industrial production for the same month saw a 2.2% rise – beating expectations calling for a 2.0% drop. The Manufacturing PMI in Japan came in at 53.6 in April, up from 52.7 in March. Despite supportive economic data releases, the Nikkei closed 0.8% lower. In Chinese news, the CFLP Manufacturing PMI came in at 51.1 last month, below the Econoday consensus at 51.7. On the other hand, the Caixin Manufacturing PMI was a beat as the index came in at 51.9, beating forecasts at 50.8. The Shanghai Composite fell 0.8% and the Hang Seng dropped 2.0% overnight.
Across the pond, Eurozone flash GDP for the first quarter showed a 0.6% decline, above forecasts at -0.9%. Flash Q1 GDP of France also beat expectations as GDP rose 0.4%, above expectations calling for a 0.1% dip. On the other hand, flash GDP for the first quarter for Germany and Italy missed expectations with German GDP falling 1.7% (vs. -1.5%) and Italian GDP falling 0.4% (vs. -0.3%). The Flash Harmonized Index of Consumer Prices (HICP) in the Eurozone rose by 1.6% y/y this month, matching the Econoday consensus. Economic data from France were mixed. The French Consumer Price Index rose 0.2% in April, below forecasts at 0.3%. On the other hand, the Producer Price Index rose 1.0% in March, up from a 0.8% rise in February. Consumer manufactured goods consumption in France fell 1.4% last month, while the Econoday consensus called for a 1.6% decline. The CPI in Italy rose 0.4% this month, matching expectations. As of this writing, the DAX was up 0.2%, the FTSE 100 was steady, while the CAC 40 had edged down 0.2%. US stock market index futures were seeing losses of between 0.5% (Dow f, S&P f) and 0.7% (Nasdaq f). Also unsupportive for crude oil prices, the US dollar index was up 0.3%.
Petroleum futures strengthened yesterday with gains in US shares, despite weakness in European equities and strength in the US dollar. Brent crude futures added $1.29 to close at $68.56/bbl and WTI futures rose $1.15 to settle at $65.01/bbl. RBOB futures gained 2.77 cents to settle at $2.0999/g and ULSD (HO) rose 2.28 cents for a $1.9614/g settlement. New York Harbor ULSD and ULSHO barge price differentials to NYMEX weakened by 5 points and one cent to -0.20c/g and -18.00c/g, respectively, according to Platts. The HSHO differential held steady at -25.75c/g. Spot propane prices rose along with crude prices yesterday, according to Platts, with Mt. Belvieu non-LST prices up 2.500 cents to 90.000c/g and LST prices adding 1.500 cents to 84.000c/g. Conway spot prices rose 50 points to 79.250c/g.
Natural gas futures fell 4.9 cents, settling at $2.911/mmBtu amid a bearish weekly storage report from the EIA. The EIA reported a 15bcf injection into underground storage for the week ended April 23, above expectations at 11bcf. The latest 1-5 day outlook from the ECMWF sees mostly above-normal temperatures across the eastern half of the country, while the 6-10 day forecasts calls for below-normal temperatures in both the Midwest and the Northeast.
