The information provided in this market update is general market commentary provided solely for educational and informational purposes. The information was obtained from sources believed to be reliable, but we do not guarantee its accuracy. No statement within the update should be construed as a recommendation, solicitation or offer to buy or sell any futures or options on futures or to otherwise provide investment advice. Any use of the information provided in this update is at your own risk.
NEWS
Petroleum futures were falling in the overnight session on Monday amid uncertainty over results of the OPEC+ meeting which takes place today and tomorrow and mixed but mostly lower trade in US stock market index futures, despite weakness in the US dollar. Market participants awaited the Chicago PMI and the NAR Pending Home Sales Index for further direction.
OPEC+ members are meeting today and tomorrow to discuss the possibility of extending existing oil cuts for three to four months or increasing output gradually from January. Reuters reports that a small oil refinery in northern Iraq was hit by a rocket on Sunday, which caused a fire at a fuel storage tank and a complete shutdown of operations, according to two refinery officials. Islamic State claimed responsibility for attacking the refinery.
Despite mostly supportive economic data, Asian stock markets closed in the red overnight with the Shanghai Composite down 0.5%, the Nikkei losing 0.8%, and the Hang Seng dropping 2.1%. The Chinese Manufacturing PMI for November came in at 52.1, above expectations at 51.5. Japanese industrial production rose by 3.8% last month, beating consensus at 2.1%. Japanese retail sales rose 6.4% in October, matching expectations.
In European economic news, the flash Consumer Price Index in Italy fell 0.1% this month, while expectations called for a 0.1% rise. Also unsupportive, the German flash CPI fell by 0.8% in November, below the Econoday consensus at -0.7%. European shares were trading mixed this morning with the FTSE 100 up 0.1% and the DAX having added 0.6%, whereas the CAC 40 had lost 0.2%. US stock market index futures were also trading mixed with Nasdaq futures up 0.2%, while S&P 500 futures and Dow futures had lost 0.2% and 0.5%, respectively, as of this writing. The US dollar index was down 0.1%, which is supportive for crude oil prices.
The complex settled in the red on Friday. WTI crude lost 18 cents, settling at $45.53/bbl, and Brent crude shed 43 cents to close at $48.18. RBOB futures settled 55 points weaker at $1.2820/g, and ULSD (HO) closed 61 points lower at $1.3805/g.
Natural gas futures traded on NYMEX lost 11.8 cents to settle at $2.843/mmBtu on Friday. The latest 1-5 day forecast (EC) sees mixed but mostly below-normal temperatures in the Midwest, while above-normal temperatures are expected in the Northeast. The 6-10 day outlook shows mixed temperatures in both regions.