Petroleum futures were trading in the black in the overnight session on Friday, after yesterday’s heavy losses, amid gains in European equities and in US stock market index futures, as well as weakness in the US dollar, despite news that Colonial Pipeline has restarted its entire pipeline system and has begun deliveries in all of its markets. It was a quiet morning on the economic calendar with market participants looking ahead to US data in the form of retail sales, industrial production, import and export prices, a consumer sentiment report, and the weekly rig counts from Baker Hughes, as well as Canadian manufacturing sales for further direction.
Asian stock markets closed higher overnight with the Hang Seng up 1.1%, the Shanghai Composite adding 1.8% and the Nikkei rallying 2.3%. European shares were trading in the black this morning with the DAX and the FTSE 100 both up 0.6%, while the CAC 40 had gained 0.8%. As of this writing, US stock market index futures were seeing gains of between 0.5% (Dow f) and 1.0% (Nasdaq f). Also supportive for crude oil prices, the US dollar index was down 0.25%.
Petroleum futures lost ground yesterday, snapping a four-session rally, amid a partial resumption of Colonial Pipeline operations and mixed trade in European shares, despite strength in US equities. WTI crude dropped $2.26 to settle at $63.82/bbl and Brent crude lost $2.27 to close at $67.05/bbl. RBOB futures fell 6.57 cents, settling at $2.0953/g, and ULSD (HO) futures closed 6.86 cents lower at $2.0009/g. According to Platts, the New York Harbor ULSD barge differential to NYMEX weakened by 25 points to +0.75c/g, while the ULSHO differential strengthened by one cent to -18.25c/g. Meanwhile, the HSHO barge differential held steady at -26.00c/g. Also per Platts, May propane prices fell along with crude prices on Thursday as Mt. Belvieu non-LST prices fell one cent to 79.625c/g and LST prices weakened 1.125 cents to 80.125c/g. Conway spot prices fell by 87.5 points to 78.375c/g.
Natural gas futures edged up 40 points, settling at $2.973/mmBtu with a supportive weekly storage report from the EIA. The EIA reported a 71bcf injection into underground storage for the week ended May 7, below expectations at 76bcf. The National Hurricane Center sees no tropical cyclones in the Atlantic in the next 48 hours.
