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NEWS
Petroleum futures were falling further in the overnight session on Friday amid an increasing Libyan oil output, despite gains in US stock market index futures and weakness in the US dollar. Reuters reports that Libyan oil production has now reached 1.215mb/d, according to a source. Market participants awaited the US Producer Price Index and a consumer sentiment report, as well as the weekly US rig counts from Baker Hughes for further direction.
Asian stock markets closed in the red overnight with the Hang Seng edging down 0.1%, the Nikkei losing 0.5%, and the Shanghai Composite dropping 0.9%. In economic news, Eurozone flash GDP for Q3 rose by 12.6%, just below expectations at 12.7%. On the other hand, the French Consumer Price Index remained unchanged last month, while forecasts called for a 0.1% dip. As of this writing, the DAX and the CAC 40 were up 0.1% and 0.2%, respectively, while the FTSE 100 was down 0.6%. US stock market index futures were seeing gains of around 0.6%. Also supportive for crude prices, the US dollar index was down 0.1% this morning.
Petroleum futures weakened yesterday amid bearish US crude oil inventory data from the EIA, losses in equities, and a bearish comment from the IEA about the 2021 global oil demand forecast. WTI crude fell 33 cents to settle at $41.12/bbl and Brent crude lost 27 cents to close at $43.53/bbl. RBOB futures fell 1.88 cents to $1.1571/g, and ULSD (HO) settled 1.25 cents lower at $1.2333/g. According to Platts, New York Harbor ULSD and HSHO barge differentials to NYMEX weakened by 25 points and 5.25 cents to -0.85c/g and -14.25c/g, respectively, while ULSHO barge differential strengthened by 50 points to -9.25c/g. November propane prices made opposite moved to crude prices yesterday, per Platts, as Mt. Belvieu LST prices rose 87.5 points to 56.375c/g and non-LST prices strengthened by 75 points to 56.750c/g. Conway spot prices added 62.5 points, averaging at 55.250c/g.
NYMEX natural gas futures settled 5.5 cents lower at $2.976/mmBtu yesterday despite a tighter market balance expectation for next week and a stronger two-week heating degree day outlook. The latest 1-5 day forecast (EC) sees near normal temperatures in the Northeast, while mixed temperatures are expected in the Midwest. The 6-10 day outlook calls for below normal temperatures on the East Coast, whereas mostly above-normal temperatures are seen in the Midwest. Due to the holiday on Wednesday, the EIA is due to release its natural gas storage report for the week ended November 6 this morning, expected to show a 9bcf withdrawal.