RANsquawk DAILY ENERGY COMMENTARY – 25/04/12
By RANsquawk -
Wed 25 Apr 2012 04:31:09 CT
WTI and Brent crude futures are trading higher following a drawdown in API inventories after the pit close yesterday. Energy participants now look ahead to the DOE inventory data as well as the FOMC rate decision at 1730BST/1130CDT.
Oil & Gas News:
• Goldman Sachs' head of commodities research has said oil demand will grow faster than production capacity even as the global economy slows, pushing prices higher. The analyst has added that Saudi Arabia is building crude supplies to meet an expected increase in domestic demand for power generation, which will draw on the stockpiles substantially in the coming months.
• On natural gas, Goldman Sachs analyst Currie has said the US price for natural gas may rebound to USD 4.00/MMBTU relatively quickly as production growth slows and colder weather returns.
• Bank of America have cut their 2013 US natural gas price forecast to USD 3.50 from USD 3.80.
• Iraq's Oil Minister has said output at the West Qurna 2 oilfield is to reach an average of 150,000 BPD in 2013, 500,000BPD in 2014.
Geopolitical News:
• North Korea is armed with 'modern weapons' capable of defeating the US 'in a single blow', according to the North Korean Vice Marshal Ri Yong Ho.
• The command of the joint Gulf Arab armed force, the Peninsula Shield, plans to conduct an exercise known as 'Loyalty Islands' on April 29th-30th to test the coordination between their land, air and naval components, according to UAE state news.
• Pakistan have test fired a medium-range ballistic missile capable of carrying a nuclear warhead shortly after India launched a long-range missile test, according to the Pakistani military.
Corporate News:
• Production at the BP-operated Skarv field in the Norwegian North Sea has been further delayed to Q4 this year due to weather delays.
• Statoil is set to acquire its first acreage in the emerging Ghana offshore play after striking a farm-in deal with US operator Hess on a deep-water licence.
Weather News:
The latest Weather Derivatives update forecasts temperatures in the US for the next 6-10 days to be 1.6% lower than normal for this time of year with the North-central region experiencing the most unseasonably cold weather. Using data accurate on the 24th April.
US API Crude Oil Inventories (Apr 20) W/W -985K vs. Prev. 3409K
-API Gasoline Inventories (Apr 20) W/W -3643K vs. Prev. -2602K
-API Distillate Inventory (Apr 20) W/W -3561K vs. Prev. -2429K
-API Cushing Crude OK Inventory (Apr 20) W/W 565K vs. Prev. 581K.
US DOE Crude Oil Inventories (Apr 20) W/W Exp. 2800K, Low -3000K, High 4000K (Prev. 3856K)
-DOE Gasoline Inventories (Apr 20) W/W Exp. -1500K, Low -2800K, High 3000K (Prev. -3671K)
-DOE Distillate Inventory (Apr 20) W/W Exp. 500K, Low -2500K, High 3000K (Prev. -2908K)
-DOE US Refinery Utilisation (Apr 20) W/W Exp. 0.50%, Low 0.00%, High 1.00% (Prev. 0.80%)
-DOE Cushing OK Crude Inventory (Apr 20) W/W (Prev. 592K)
Prices taken at: 1001BST
Gold May options expiry (1830BST/1230CDT)
Silver May options expiry (1825BST/1225CDT)
Heating Oil/RBOB/Nat Gas May options expiry (1930BST/1330CDT)
Sources: RTRS/Upstream/Associated Press/Press TV/Sources
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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
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