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MTECHTIPS CRUDEOIL

MTECHTIPS CRUDEOIL

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Published by MtechTips

MTECHTIPS

1. Oil falls, extends Friday’s drop
Oil futures traded lower during Monday’s Asian session, extending declines seen during Friday’s U.S. session. On the New York Mercantile Exchange, light, sweet crude futures for June delivery dropped 0.93% to USD95.14 per barrel in Asian trading Monday after falling 0.5% on Friday in the U.S. to settle the week at USD95.94 a barrel. Nymex oil futures added 0.5% on the week, the third consecutive weekly advance. Speculation that the Federal Reserve is mulling winding down or bringing an end to its quantitative easing program is seen as putting a lid on oil prices. The Fed is currently running a USD85 billion monthly asset-purchasing program, which weakens the greenback to bolster recovery in the world’s largest economy. A strengthening U.S. jobs market could give the Fed room to consider an end to quantitative easing. Last Thursday, the U.S. Labor Department said initial claims for jobless benefits fell by 18,000 last week to a five-year low of 324,000. Analysts expected a reading of 345,000 claims. The U.S is the world’s largest oil consumer and traders will have plenty of data points with which to play oil this week including April retail sales for the U.S., which will be reported later Monday.
2. Crude oil futures lower after weak China data, stronger dollar weighs
Crude oil futures were lower on Monday, as appetite for growth-linked assets weakened after data showed that industrial production in China rose at a slower rate than expected last month.Oil prices also struggled due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD95.25 a barrel during European morning trade, down 0.8% on the day. New York-traded oil prices fell by as much as 1% earlier in the session to hit a daily low of USD95.05 a barrel. Official data released earlier showed that industrial production in China rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month. Separate data showed that retail sales in China increased by 12.8% in April, in line with expectations. The weaker-than-expected data fuelled concerns that China’s economic recovery was stalling. China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand. Meanwhile, the dollar was in demand as recent strong U.S. employment data fuelled speculation over an earlier-than-expected end to the Federal Reserve’s USD85 billion a month asset purchase program.
3. Brent Crude Oil to resume range-bound trade by end of Q2
Brent crude oil prices are expected to resume range-bound trading at about $111/bbl in the tail end of the second quarter, stated London based Barclays in its recent market analysis This will coincide with global oil demand surpassing 90 mb/d for the first time in history, with non-OECD demand exceeding OECD demand. In terms of demand growth, Barclays expects upside surprises in the Atlantic (Latin America) and the Pacific (smaller non-OECD Asia Pacific countries).China is expected to grow a moderate 5%. This positive turnaround is already largely reflected in this week’s OPEC monthly oil market report with the organisation lifting the call on its own crude by 100 thousand b/d to 29.8 mb/d, in line with Barclays expectations.Brent remained above $104/bbl last week with a slight pick-up in intraday volatility. The bank maintains it's view that there is not yet enough momentum in the benchmark to power a complete retracement to the familiar range around $111/bbl.While the macro-environment has turned positive with upside surprises in data seen this week from Germany, Australia and the US, this is likely to only support prices at current levels at best, rather than propel a complete upward retracement. This is because, on the physical markets, demand fo

MTECHTIPS

1. Oil falls, extends Friday’s drop
Oil futures traded lower during Monday’s Asian session, extending declines seen during Friday’s U.S. session. On the New York Mercantile Exchange, light, sweet crude futures for June delivery dropped 0.93% to USD95.14 per barrel in Asian trading Monday after falling 0.5% on Friday in the U.S. to settle the week at USD95.94 a barrel. Nymex oil futures added 0.5% on the week, the third consecutive weekly advance. Speculation that the Federal Reserve is mulling winding down or bringing an end to its quantitative easing program is seen as putting a lid on oil prices. The Fed is currently running a USD85 billion monthly asset-purchasing program, which weakens the greenback to bolster recovery in the world’s largest economy. A strengthening U.S. jobs market could give the Fed room to consider an end to quantitative easing. Last Thursday, the U.S. Labor Department said initial claims for jobless benefits fell by 18,000 last week to a five-year low of 324,000. Analysts expected a reading of 345,000 claims. The U.S is the world’s largest oil consumer and traders will have plenty of data points with which to play oil this week including April retail sales for the U.S., which will be reported later Monday.
2. Crude oil futures lower after weak China data, stronger dollar weighs
Crude oil futures were lower on Monday, as appetite for growth-linked assets weakened after data showed that industrial production in China rose at a slower rate than expected last month.Oil prices also struggled due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD95.25 a barrel during European morning trade, down 0.8% on the day. New York-traded oil prices fell by as much as 1% earlier in the session to hit a daily low of USD95.05 a barrel. Official data released earlier showed that industrial production in China rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month. Separate data showed that retail sales in China increased by 12.8% in April, in line with expectations. The weaker-than-expected data fuelled concerns that China’s economic recovery was stalling. China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand. Meanwhile, the dollar was in demand as recent strong U.S. employment data fuelled speculation over an earlier-than-expected end to the Federal Reserve’s USD85 billion a month asset purchase program.
3. Brent Crude Oil to resume range-bound trade by end of Q2
Brent crude oil prices are expected to resume range-bound trading at about $111/bbl in the tail end of the second quarter, stated London based Barclays in its recent market analysis This will coincide with global oil demand surpassing 90 mb/d for the first time in history, with non-OECD demand exceeding OECD demand. In terms of demand growth, Barclays expects upside surprises in the Atlantic (Latin America) and the Pacific (smaller non-OECD Asia Pacific countries).China is expected to grow a moderate 5%. This positive turnaround is already largely reflected in this week’s OPEC monthly oil market report with the organisation lifting the call on its own crude by 100 thousand b/d to 29.8 mb/d, in line with Barclays expectations.Brent remained above $104/bbl last week with a slight pick-up in intraday volatility. The bank maintains it's view that there is not yet enough momentum in the benchmark to power a complete retracement to the familiar range around $111/bbl.While the macro-environment has turned positive with upside surprises in data seen this week from Germany, Australia and the US, this is likely to only support prices at current levels at best, rather than propel a complete upward retracement. This is because, on the physical markets, demand fo

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Published by: MtechTips on May 13, 2013
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MTECHTIPS
1.
Oil
falls, extends Friday’s drop
 
Oil futures traded lower during Monday’s Asian session,extending declines seen during Friday’s U.S. session. On
the New York Mercantile Exchange, light, sweet crudefutures for June delivery dropped 0.93% to USD95.14per barrel in Asian trading Monday after falling 0.5% onFriday in the U.S. to settle the week at USD95.94 abarrel. Nymex oil futures added 0.5% on the week, thethird consecutive weekly advance. Speculation that theFederal Reserve is mulling winding down or bringing anend to its quantitative easing program is seen as puttinga lid on oil prices. The Fed is currently running a USD85billion monthly asset-purchasing program, which
 
weakens the greenback to bolster recovery in the
world’s largest economy. A strengthening U.S. jobs
market could give the Fed room to consider an end toquantitative easing. Last Thursday, the U.S. LaborDepartment said initial claims for jobless benefits fell by18,000 last week to a five-year low of 324,000. Analystsexpected a reading of 345,000 claims. The U.S is the
world’s largest oil consumer and traders will have
plenty of data points with which to play oil this weekincluding April retail sales for the U.S., which will bereported later Monday.2. Crude oil futures lower after weak China data,stronger dollar weighsCrude oil futures were lower on Monday, as appetitefor growth-linked assets weakened after data showedthat industrial production in China rose at a slower ratethan expected last month.Oil prices also struggled dueto a stronger U.S. dollar, as dollar-priced commoditiesbecome more expensive to investors holding othercurrencies when the greenback gains.On the New YorkMercantile Exchange, light sweet crude futures fordelivery in June traded at USD95.25 a barrel duringEuropean morning trade, down 0.8% on the day. NewYork-traded oil prices fell by as much as 1% earlier inthe session to hit a daily low of USD95.05 a barrel.
 
Official data released earlier showed that industrialproduction in China rose 9.3% in April, belowexpectations for a 9.5% increase and following an 8.9%rise the previous month. Separate data showed thatretail sales in China increased by 12.8% in April, in linewith expectations. The weaker-than-expected data
fuelled concerns that China’s economic recovery was
stalling. China is the world's second largest oil consumerafter the U.S. and has been the engine of strengtheningdemand. Meanwhile, the dollar was in demand asrecent strong U.S. employment data fuelled speculationover an earlier-than-expected end to the Federal
Reserve’s USD85 billion a month asset purchase
program.3. Brent Crude Oil to resume range-bound trade by endof Q2Brent crude oil prices are expected to resume range-bound trading at about $111/bbl in the tail end of thesecond quarter, stated London based Barclays in itsrecent market analysis This will coincide with global oildemand surpassing 90 mb/d for the first time in history,with non-OECD demand exceeding OECD demand. Interms of demand growth, Barclays expects upsidesurprises in the Atlantic (Latin America) and the Pacific(smaller non-OECD Asia Pacific countries).China is

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