Crude futures looked set to strengthen for a fifth session in the last six, with gains of over 1.5 percent as of this writing in the overnight session. The gains came amid some strength in European shares but despite more mixed trade US stock market index futures and strength in the US dollar. Market participants looked ahead to US international trade in goods and Canadian merchandise trade data for further direction.
The Tokyo stock exchange and Shanghai exchanges are closed on May 3 and May 4. The Hang Seng strengthened 0.7% overnight. As of this writing, the FTSE 100 in the UK had gained 0.8% following encouraging manufacturing sector data. The final CIPS/Markit Manufacturing PMI saw a surprise upward revision from 60.7 in the flash reading to 60.9, even further above the 58.9 March print. Germany’s DAX was off 0.10% this morning, but the CAC 40 in France had gained 0.74%. In the US, Dow futures were up 0.1%, but futures for the S&P 400 were down 0.1% and Nasdaq futures had lost 0.4%. Also unsupportive for crude, the US dollar index had strengthened 0.41%, reversing yesterday’s losses.
Market participants looked ahead to US international trade in goods and services data for March, expected to show a widening of the deficit from $71.1bn to $74.0bn. Canadian merchandise trade data for March were also due this morning, expected to show a narrower surplus of C$0.4bn, compared to C$1.04bn in February. It is otherwise a quiet day on the economic calendar, and it was a quiet morning on the newswires.
Crude futures strengthened for a fourth session in five on Monday, with Brent crude gaining 80 cents to close at $67.56/bbl and WTI futures strengthening 91 cents for a $64.49/bbl settlement, amid weakness in the US dollar and strength in most US and European stock indexes. On the product end of the barrel, RBOB futures settled 2.52 cents stronger at $2.1015/g, and ULSD (HO) settled at $1.9519/g, up 2.95 cents. According to Platts, New York Harbor ULSD barge prices strengthened by 30 points against NYMEX, putting the cash differential at +0.15c/g. Meanwhile, the ULSHO differential weakened by 50 points to -17.75c/g and the HSHO differential held steady at -25.85c/g. Propane prices saw flat-to-lower trade on Monday. Conway prices held steady at 77.25c/g, according to Platts, while Mt. Belvieu LST prices fell 1.25 cents to 80.25c/g and non-LST prices tumbled 5.50 cents lower to 80.50c/g, slashing their wide premium over LST (market participants had pointed to a short squeeze late last month).
NYMEX natural gas futures added 3.5 cents yesterday, settling at $2.966/mmBtu with a slightly stronger two-week GFS total degree day forecast. The National Hurricane Center expects no tropical cyclone activity over the next 48 hours.
