Petroleum futures were seeing small gains in the overnight session on Friday amid flat-to-higher trade in US stock market index futures, despite more mixed trade in European equities. Market participants awaited Canadian Labor Force Survey data, the Canadian Ivey PMI, the US employment situation report, US factory orders data, and the weekly US rig counts from Baker Hughes for further direction.
Japanese household spending rose just 0.1% in April, down from a 7.2% increase in March. The Nikkei closed 0.4% lower and the Hang Seng edged down 0.2%, while the Shanghai Composite rose 0.2%. In European news, Eurozone retail sales fell 3.1% in April, while forecasts called for a smaller dip of 1.2%. On the other hand, March sales growth was revised up by 0.5 percentage points to 3.3%. The Construction PMI in the UK came in at 64.2 last month, above the Econoday consensus at 62.3. As of this writing, European stock markets were trading mixed wit the CAC 40 steady and the DAX up 0.1%, whereas the FTSE 100 was down 0.2%. US stock market index futures were trading flat to higher this morning with futures for the Dow down 0.05%, while S&P 500 futures and Nasdaq futures were seeing gains of 0.09% and 0.16%, respectively. The US dollar index was flat as of this writing.
Petroleum futures settled mixed near the unchanged mark yesterday with bullish crude oil inventory data from the EIA likely supporting, while bearish gasoline and distillate inventory data, strength in the US dollar, and mixed trade in global equities were likely weighing on the price action. Brent crude edged down 4 cents to $71.31/bbl and WTI crude fell just 2 cents, settling at $68.81/bbl. RBOB futures added 77 points to settle at $2.2018/g, while ULSD (HO) settled 54 points lower at $2.1017/g. According to Platts, New York Harbor ULSD, HSHO, and ULSHO barge price differentials held steady yesterday at +0.10c/g, -31.65c/g, and -21.75c/g, respectively. June propane prices weakened yesterday amid unsupportive EIA inventories. Per Platts, Mt. Belvieu LST prices fell 87.5 points to 90.875c/g and non-LST prices weakened by one cent to 90.500c/g. Conway prices lost 1.125 cents to average 88.375c/g.
Natural gas futures fell 3.4 cents, settling at $3.041/mmBtu with an unsupportive weekly storage report from the EIA and a weaker two-week cooling degree day forecast. The EIA reported a 98bcf injection into underground storage for the week ended May 28, above expectations at 95bcf. Things remain quiet in the Atlantic, with no tropical cyclone activity expected over the next two days by the National Hurricane Center.
