Petroleum futures were trading mixed this morning with weakness in the US dollar, gains in European shares and in US stock market index futures, and a pause in talks over the US-Iran nuclear deal likely supporting. It was a quiet morning with a quiet day ahead on the economic calendar.
Reuters reports that negotiations over the US-Iran nuclear deal were paused on Sunday after hardline judge Ebrahim Raisi, who is under US sanctions for human rights abuses, won the Iranian presidential election. Negotiations are expected to restart in about ten days.
Asian stock markets closed flat to lower overnight with the Shanghai Composite edging up 0.1%, while the Hang Seng lost 1.1% and the Nikkei dropped 3.3%. European shares were trading in the black this morning with the FTSE 100 up 0.2%, the CAC 40 having added 0.3%, and the DAX having gained 0.7%. As of this writing, US stock market index futures were seeing gains of between 0.4% (S&P 500 f) and 0.6% (Dow f). Also supportive for crude oil prices, the US dollar index was down 0.2%.
Petroleum futures settled higher on Friday amid Tropical Cyclone Three, which later turned into Tropical Storm Claudette, despite strength in the US dollar, weakness in equities, and a rise of 8 in the US oil rig count. Brent crude rose 43 cents, closing at $73.51/bbl, and WTI added 60 cents to settle at $71.64/bbl. RBOB futures gained 3.41 cents, settling at $2.1683/g and ULSD (HO) futures rose 2.64 cents to settle at $2.0932/g. The New York Harbor ULSHO barge price differential to NYMEX weakened by 25 points to -16.25c/g, per Platts. Meanwhile, HSHO and ULSD differentials held steady at -31.75c/g and +0.00c/g, respectively. June propane prices rose along with crude on Friday. Per Platts, Mt. Belvieu LST prices rose 50 points to 97.500c/g, and non-LST prices at the Texas hub also strengthened by 75 points to 98.000c/g. Conway prices added 1.625 cents, hitting 96.375c/g.
Natural gas futures traded on NYMEX fell 3.8 cents on Friday, settling at $3.215/mmBtu, amid a rise of 1 in the US rig count. The National Hurricane Center continues to track Tropical Storm Claudette, which is now located over the North Carolina coast and is seen moving northeastward into the Atlantic.
