Crude oil futures were trading broadly flat-to-lower Tuesday, as wider economic concerns continued to dominate the oil market. But after 11 sessions of both benchmark contracts trading in relatively tight ranges, some market watchers said there are signs that prices could be ready for a push higher. At 1035 GMT, the front-month January Brent contract on London's ICE futures exchange is down 28 cents at $110.64 a barrel. The front-month January light, sweet crude contract on the New York Mercantile Exchange is trading 5 cents higher at $89.14 a barrel.Mixed macroeconomic data and ongoing concerns over U.S. debt reduction plans kept market participants on edge, with few fundamental developments, said VTB Capital analyst Andrey Kryuchenkov in a note to clients.
Positive signs of revived growth in China were offset by poor U.S. manufacturing data, which fell to a three-year low.
Oil prices traded within their technical range in electronic morning trading on Monday, lingering between support and resistance lines. Better-than-expected Chinese manufacturing data reaffirmed the view growth was picking up, pushing trader's risk sentiment and lending a certain support at this time of the day while the indicators from Europe came out in line with expectations and had thus no influence on the oil market. During the session in New York oil prices at ICE and NYMEX eventually breached several resistance lines, helped up by a stronger euro and by the gains in equities. The better-than-expected US PMI released by Markit even ensured that key resistance lines were temporarily breached. However, concerns increased and oil markets were starting to come off after the Institute for Supply Management said its manufacturing index, which is much more acknowledged, fell to its lowest since July 2009. For a short while oil prices were still poised on their high level, supported by the strength in the euro but soon investors opted for profit taking and so oil erased its earlier gains in London and New York. ICE futures even fell through the first support lines, marking fresh day lows and settling lower at the end of the session.
ICE Gasoil contract for December delivery settled at 949.75 dollars on Monday. This was 0.50 dollars below Friday's settlement. With some 36,800 deals the traded volume was well below average.
BP PLC told investors it is raising capital spending to between 24 billion dollars and 27 billion dollars a year in 2014 to 2020 from 19.1 billion dollars last year, with the proportion earmarked for upstream rising to around 80% of total capital spending in 2014 from around 70% in 2011, underscoring the company's renewed emphasis on its upstream division. The bias of the company would be toward finding and producing more crude oil, particularly in higher margin areas such as Angola and Azerbaijan. The cash for the upstream spending will come from ongoing divestments, additional funds generated from operations such as higher-margin oil-producing projects and other investments such as the modernization of some of the companie's refineries. Since early 2010, BP has acquired interests in around 400,000 square kilometers of new exploration acreage.This year, BP expects to complete nine exploration wells. That number is expected to increase to 15 to 25 wells a year in the years to come. By the end of 2014, BP aims to bring 15 big upstream projects into production.
The technical constellation does not give any new signals this morning. The two lines of the Stochastic oscillator are converging, which makes the indicator neutral. Should the lines cross during the day a selling signal would be triggered, see also technical analysis. Oil's upside is seen limited after prices failed to breach the resistance lines for good on Monday. As long as the Stochastic or the RSI do not give any fresh signals technical analysts regard the market as neutral.
U.S.
Nymex Access slightly bearish: Oil prices are trading in a lateral pattern with a bearish tone in East-Asia and on Globex electronic trading platform this morning as demand concerns moved into focus after weak manufacturing data from the United States. The traded volume is about on average. Market players eye the performance of stock and forex markets today as well as the API's petroleum inventory report. There are only a few less important indicators on the agenda today.
Survey of US Petroleum inventories due out tonight at 22:30 (API) and Wednesday at 16:30 (DOE).
Crude oil -0.4; distillates +1.2; gasoline +2.2 million barrels vs previous week.
Houston (ex-wharf indications 04-12)
380cst $618
180cst $674
MGO $1037
New Orleans (ex-wharf indications 04-12)
380cst $635
180cst $671
MGO $1042
Singapore (correct as of 14:30 hrs LT - delivered indications)
The technical constellation does not give any new signals this morning. The two lines of the Stochastic oscillator are converging, which makes the indicator neutral. Should the lines cross during the day a selling signal would be triggered, see also technical analysis. Oil's upside is seen limited after prices failed to breach the resistance lines for good on Monday. As long as the Stochastic or the RSI do not give any fresh signals technical analysts regard the market as neutral.
High premiums for prompt deliveries.
380 cst $605
180 cst $614
MDO $941
ARA (Amsterdam - Rotterdam - Antwerp)
Rotterdam continued with slow demand today which is not a bad thing with some difficulties with bunker deliveries due to ongoing delays some loading installations, Antwerp continued to run low of high sulfur fuel oil due to shortages of blending components, sources said. Avails in Rotterdam are not much better either [in terms of HSFO availability], some are not quoting until December 5.
Indications for delivered bunkers:
380cst : $ 586
(1.0 %) :$ 618
180cst: $ 616
(1.0 %):$ 648
MGO 0.1%S: $ 940
