Latest topics
Brent crude up as China, Iran outweigh U.S. stockbuild
3 posters
Page 1 of 1
Brent crude up as China, Iran outweigh U.S. stockbuild
Feb 1, 2012
Brent crude up as China, Iran outweigh U.S. stockbuild
(Reuters) - Brent crude rose on Wednesday as upbeat Chinese manufacturing data and concerns about the standoff between Iran and the West outweighed data showing a large build in U.S. oil inventories.
U.S. crude turned negative after data from the U.S. Energy Information Administration showed inventories shot up 4 million barrels last week, including a steep 1.5-million-barrel increase at the Cushing, Oklahoma, delivery point for the New York Mercantile Exchanges' s oil futures contract.
Brent also pared gains after the data was released, but remained in positive territory on hopes that Greece appeared closer to clinching a debt-swap deal with its private creditors.
In London, Brent crude for March delivery settled 58 cents higher at $111.56 a barrel, after hitting an early high of $112.82. Front-month Brent rose for a second straight day.
U.S. crude fell 87 cents to close at $97.61, the fourth straight daily decline.
In addition to higher stockpiles, U.S. crude was hampered by data showing a slower pace of job creation in the private sector, although manufacturing growth picked up in January.
Brent's premium against U.S. crude widened to $13.95 at the close, after the WTI/Brent spread jumped intraday to $14.08, the highest since November 15. On Tuesday, Brent's premium closed at $12.50.
Some market analysts said the spread could widen further as Cushing inventories were expected to grow.
"We feel that an additional expansion of a couple more dollars is likely given the growing contrast between a supply re-build at Cushing and an attempt by European refiners to obtain alternative supply sources ahead of an Iranian embargo," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.
U.S. INVENTORIES
The EIA data also showed a strong 3 million barrel gain in U.S. gasoline stockpiles as demand continued to slump and stood at levels last seen 11 years ago.
U.S. March RBOB gasoline futures sharply pared gains, closing at $2.8922 a gallon, a gain of just 0.13 cent, off an early high of $2.9487 hit before release of the EIA data.
"U.S. RBOB gasoline is taking a hit from the EIA data and is pulling crude futures lower," said Stephen Schork, editor of the Schork Report in Villanova, Pennsylvania.
CHINA DATA, IRAN SANCTIONS
Early support for crude came from data showing China's factory sector expanded slightly in January, defying expectations for a contraction and supporting hopes that the world's largest energy consumer will continue to beef up oil demand as it avoids a hard landing.
Traders were also eyeing U.S. efforts to further tighten its already harsh sanctions against Iran for its disputed nuclear program as U.S. lawmakers are considering more measures to constrict Tehran's oil revenues.
The measures would single out Iran's national oil and shipping companies and restrict its ability to tap into electronic banking services.
http://www.reuters.com/article/2012/02/01/us-markets-oil-idUSTRE7AD06820120201
Brent crude up as China, Iran outweigh U.S. stockbuild
(Reuters) - Brent crude rose on Wednesday as upbeat Chinese manufacturing data and concerns about the standoff between Iran and the West outweighed data showing a large build in U.S. oil inventories.
U.S. crude turned negative after data from the U.S. Energy Information Administration showed inventories shot up 4 million barrels last week, including a steep 1.5-million-barrel increase at the Cushing, Oklahoma, delivery point for the New York Mercantile Exchanges' s oil futures contract.
Brent also pared gains after the data was released, but remained in positive territory on hopes that Greece appeared closer to clinching a debt-swap deal with its private creditors.
In London, Brent crude for March delivery settled 58 cents higher at $111.56 a barrel, after hitting an early high of $112.82. Front-month Brent rose for a second straight day.
U.S. crude fell 87 cents to close at $97.61, the fourth straight daily decline.
In addition to higher stockpiles, U.S. crude was hampered by data showing a slower pace of job creation in the private sector, although manufacturing growth picked up in January.
Brent's premium against U.S. crude widened to $13.95 at the close, after the WTI/Brent spread jumped intraday to $14.08, the highest since November 15. On Tuesday, Brent's premium closed at $12.50.
Some market analysts said the spread could widen further as Cushing inventories were expected to grow.
"We feel that an additional expansion of a couple more dollars is likely given the growing contrast between a supply re-build at Cushing and an attempt by European refiners to obtain alternative supply sources ahead of an Iranian embargo," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.
U.S. INVENTORIES
The EIA data also showed a strong 3 million barrel gain in U.S. gasoline stockpiles as demand continued to slump and stood at levels last seen 11 years ago.
U.S. March RBOB gasoline futures sharply pared gains, closing at $2.8922 a gallon, a gain of just 0.13 cent, off an early high of $2.9487 hit before release of the EIA data.
"U.S. RBOB gasoline is taking a hit from the EIA data and is pulling crude futures lower," said Stephen Schork, editor of the Schork Report in Villanova, Pennsylvania.
CHINA DATA, IRAN SANCTIONS
Early support for crude came from data showing China's factory sector expanded slightly in January, defying expectations for a contraction and supporting hopes that the world's largest energy consumer will continue to beef up oil demand as it avoids a hard landing.
Traders were also eyeing U.S. efforts to further tighten its already harsh sanctions against Iran for its disputed nuclear program as U.S. lawmakers are considering more measures to constrict Tehran's oil revenues.
The measures would single out Iran's national oil and shipping companies and restrict its ability to tap into electronic banking services.
http://www.reuters.com/article/2012/02/01/us-markets-oil-idUSTRE7AD06820120201
*****************
"WHEN THE POWER OF LOVE OVERCOMES THE LOVE OF POWER, THE WORLD WILL KNOW PEACE"
lexie- Elite Member
- Posts : 1812
Join date : 2011-06-24
Re: Brent crude up as China, Iran outweigh U.S. stockbuild
Iran making a lot of moves, in many areas
*****************
Being defeated is often a temporary condition. Giving up is what makes it permanent.
Marilyn Vos Savant
Yesterday would have been better, but today is a good day
Remember as always, JMHO
Rantings from just north of sixty
1alaskan- Elite Member
- Posts : 4668
Join date : 2011-06-21
Age : 41
Location : Planet far far away
Re: Brent crude up as China, Iran outweigh U.S. stockbuild
SOUNDS LIKE IRAN IS NAILING DOWN ALL THE HOUSES BEFORE THE SANCTION TSUNAMI.
*****************
bobd- Elite Member
- Posts : 347
Join date : 2011-12-11
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
Sat Apr 13, 2024 11:51 am by Mission1st
» Dave Schmidt - Zim Notes for Purchase (NOT PHYSICAL NOTES)
Sat Apr 13, 2024 11:45 am by Mission1st
» Russia aren't taking any prisoners
Fri Apr 05, 2024 6:48 pm by kenlej
» Deadly stampede could affect Iraq’s World Cup hopes 1/19/23
Wed Mar 27, 2024 6:02 am by Ditartyn
» ZIGPLACE
Wed Mar 20, 2024 6:29 am by Zig
» CBD Vape Cartridges
Thu Mar 07, 2024 2:10 pm by Arendac
» Classic Tony is back
Tue Mar 05, 2024 2:53 pm by Mission1st
» THE MUSINGS OF A MADMAN
Mon Mar 04, 2024 11:40 am by Arendac
» Minister of Transport: We do not have authority over any airport in Iraq
Mon Mar 04, 2024 11:40 am by Verina
» Did Okie Die?
Mon Mar 04, 2024 11:34 am by Arendac
» Hello all, I’m new
Wed Jan 31, 2024 8:46 pm by Jonny_5
» The Renfrows: Prophets for Profits, Happy Anniversary!
Wed Jan 31, 2024 6:46 pm by Mission1st
» What Happens when Cancer is treated with Cannabis? VIDEO
Wed Jan 31, 2024 8:58 am by MadisonParrish
» An Awesome talk between Tucker and Russell Brand
Wed Jan 31, 2024 12:16 am by kenlej
» Trafficking in children
Mon Jan 29, 2024 7:43 pm by kenlej
» The second American Revolution has begun, God Bless Texas
Mon Jan 29, 2024 6:13 pm by kenlej
» The Global Currency Reset Evolution Event Will Begin With Gold, Zimbabwe ZWR Old Bank Notes
Sun Jan 28, 2024 3:28 pm by Mission1st
» Tucker talking Canada
Wed Jan 24, 2024 6:50 pm by kenlej
» Almost to the end The goodguys are winning
Mon Jan 22, 2024 9:03 pm by kenlej
» Dinar Daily Facebook Page
Mon Jan 22, 2024 3:34 pm by Ponee