Petroleum futures were trading in the red in the overnight session on Monday, after a four-session rally, with the continued spread of COVID-19 variants and losses in European shares and in US stock market index futures but despite weakness in the US dollar. Market participants looked ahead to US new home sales data for further direction.
Asian stock markets closed mixed overnight with the Nikkei adding 1.0%, while the Shanghai Composite fell 2.3% and the Hang Seng tumbled 4.1% lower. In European news, the Ifo Survey for July in Germany showed a deterioration in the business climate indicator, falling from 101.7 to 100.8 – below consensus calling for a rise to 102.1. Both the current conditions (100.4) and business expectations (101.2) components missed expectations. The DAX was down 0.4% this morning, while the CAC 40 and the FTSE 100 had both lost 0.2%. US stock market index futures were trading just south of the unchanged mark as of this writing. In supportive news, the US dollar index was down 0.2%.
The complex settled flat to higher on Friday with gains in global equities. Brent crude closed 31 cents stronger at $74.10/bbl and WTI gained 16 cents, settling at $72.07/bbl. RBOB futures rose 1.81 cents to settle at $2.2913/g and ULSD (HO) edged up just 13 points to $2.1339/g. Biodiesel (D4) RIN prices remained steady at 166 cents on Friday. According to Platts, New York Harbor ULSD, HSHO, and ULSHO barge price differentials to NYMEX held steady at -0.10c/g, -31.75c/g, and -17.75c/g, respectively. Also according to Platts, July propane prices rose along with crude on Friday. Mt. Belvieu LST prices rose 50 points to 109.625c/g and non-LST prices edged up 12.5 cents to 108.875/g. Conway prices added 1.25 cents to 109.750c/g.
NYMEX natural gas futures rose 5.7 cents, settling at $4.060/mmBtu on Friday amid generally supportive developments. The National Hurricane Center is tracking a disturbance located just east of Jacksonville, FL and gives it a low (30%) chance of cyclone formation over the next two days.
