Petroleum futures were trading mixed in the overnight session on Tuesday with gains in European shares likely supporting, while mixed trade in US stock market index futures and strength in the US dollar were likely weighing on the price action. Market participants looked ahead to US housing market and consumer confidence data, as well as the German Consumer Price Index, for further direction.
The Japanese unemployment rate rose from 2.8% to 3.0% in May, above forecasts at 2.9%. On the other hand, retail sales in Japan rose 8.2% year-on-year last month, beating the Econoday consensus at 7.9%. The Nikkei closed 0.8% lower, while the Shanghai Composite and the Hang Seng both lost 0.9%. In European news, the European Commission Economic Sentiment Index for June came in at 117.9, up from 114.5 and beating consensus at 116.5. The Nationwide House Price Index (HPI) for the UK for the same month rose by 0.7%, matching expectations. As of this writing, the FTSE 100 was up 0.3%, the CAC 40 had gained 0.4%, and the DAX had added 0.9%. US stock market index futures were trading mixed this morning with futures for the S&P 500 steady, while Nasdaq futures had edged down 0.1% and Dow futures were up 0.1%. The US dollar index was up 0.2%, which is unsupportive for crude oil prices.
Petroleum futures lost ground yesterday amid mostly lower trade in global equities, despite news that the Niger Delta Avengers threatened to disrupt Nigerian oil production and another US air strike against Iran-backed militia forces in Iraq and Syria. WTI fell $1.14, settling at $72.91/bbl, and Brent closed $1.50 lower at $74.68/bbl. RBOB futures dropped 4.73 cents, settling at $2.2166/g and ULSD (HO) settled 3.11 cents weaker at $2.1182/g. In the New York Harbor cash market, barge price differentials to NYMEX were flat to lower yesterday. Biodiesel (D4) RIN prices rose from 160 cents on Friday to 165 cents on Monday. According to Platts, the ULSHO barge differential weakened by one cent to -18.50c/g, while ULSD and HSHO differentials held steady at +0.10c/g and -31.75c/g, respectively. June propane prices, according to Platts, fell along with crude. Mt. Belvieu non-LST prices fell one cent to 103.250c/g and LST prices at the hub weakened by 50 points to 103.500c/g. Conway prices fell 75 points to 102.750c/g.
Natural gas futures on NYMEX rose by 12.1 cents on Monday, settling at $3.617/mmBtu despite neutral to unsupportive developments. As of this morning, Tropical Storm Danny has weakened and the National Hurricane Center says that heavy rainfall from the remnants of Danny may produce isolated flash flooding across western and northern Georgia and into central and northern Alabama today. The NHC is also tracking another disturbance located about 900 miles east of the Lesser Antilles and it gives it a 30% chance of tropical cyclone formation over the next 48 hours.
