According to the EIA’s “This Week in Petroleum” report, U.S. crude stocks rose by 1.6mbbl to 359.3mbbl in the week ended April 8, whereas in Cushing, Oklahoma, was increased by 26,000 BBL to 41.9mbbl. More significantly, total gasoline inventories declined by an impressive 7mbbl to 209.7mbbl, compared with one year ago figure of 221.3mbbl. The decline was the largest weekly decline in 12 years and was seven times greater than the pull-down predicted in a Bloomberg survey. The main factors responsible were a 3.7% increase in demand for gasoline and a 3% drop in refinery utilization. Distillate stocks also fell, by 2.7mbbl to 150.8mbbl but still year ago levels.
Prices, unless otherwise stated, to close April 13.
2012 German baseload power: € 58.06/MWh, a decrease of 0.94%
Coal CIF ARA 2012: € 129.30 per tonne, a decrease of 1.16%
Front-month natural gas UK: GBp60.33/therm, a decrease of 0.75%
EU allowances (EUA) for December 2011 delivery: € 16.64 per tonne, an increase of 0.30%
Certified emission reduction (s) (CERs) for delivery in December 2011: € 12.78 per tonne, an increase of 0.24%
Brent crude futures for front-month supply in 2010: U.S. $ 122.92/bbl, an increase of 0.0%, from 08:45 GMT, April 14
WTI crude oil futures for front-month supply in 2010: U.S. $ 107.07/bbl, an increase of 0.1%, from 08:45 GMT, April 14
The decline in gasoline stocks of crude helped a number of losses yesterday, with sweet light crude to recover for May delivery increased by U.S. ¢ 86 to settle at U.S. $ 107.11/bbl on NYMEX, despite a brief slip in response to the call of President Obama for a revision in the U.S. tax for individuals and businesses with the aim of raising an additional U.S. $ 1TN in tax increases over the next decade. ICE Brent Crude climbed U.S. $ 1.96 or 1.6% to finish at U.S. $ 122.88/bbl. An additional boost came from news that U.S. retail sales rose in March for the ninth month in a row up, 0.4%, after 1.1% gain in February.
Analysts at Barclays Capital said in a research note that “In our view, high oil prices have not been to any significant impact on demand for oil shows, whether in OECD or non-OECD countries.” They also expressed doubts about the news that Saudi Arabia is reportedly reduced production because of weak demand and currently estimate that between 9 and 9.5mbpd.
A meeting in Qatar to discuss the situation in Libya is showing signs of being less than productive, with NATO members at loggerheads over whether to be more air attacks launched against Gaddafi’s troops. The U.S. seems to be still carrying out bombing missions to air defense, despite an announced withdrawal of U.S. combat aircraft in NATO operations a few days earlier.
Rio Tinto said that its 1Q2011 Australian thermal coal output was in line with that seen in 1Q2010, with a higher production in New South Wales offset the impact of bad weather on the activities in Queensland. The premium commanded by FOB to FOB Richards Bay Newcastle thermal coal has risen to U.S. $ 2 per tonne for the first time in four years due to oversupply in the Asia-Pacific. Despite a temporary increase in buying by the German utilities in recent weeks following the closure of seven nuclear power plants, the European physical coal demand has been weak in March. The premium on the South African coal is expected to disappear in the second half of the year, when Japanese demand is expected to recover. A May-loading cargo of South African traded yesterday at $ 123.50 U.S. per tonne, while for June loading was bid at U.S. $ 122.50 and offered at U.S. $ 124.00 per tonne, down U.S. $ 2, 00.
U.S. natural gas futures rose 1.1% in response to the positive news on U.S. retail sales in March and EIA forecasts that industrial gas demand will increase by 3.6% this year to 18.763bnft3pd. Natural gas for May delivery on the NYMEX rose by U.S. ¢ 4.3 to U.S. $ 4.141/mBtu with pleasure, last week suggesting that the 7.4% correction was exaggerated. Additional support came from a forecast of MDA Federal to lower temperatures in the Midwest and the Northeast over the period from April 16 to 20, and speculation about the possibility of a more active than normal Atlantic hurricane season.
Over in Japan, TEPCO purchased a record volume of LNG in March, to help offset the closure of the Fukushima Daiichi and Fukushima Dai-ni nuclear plants. The utility bought 2.14Mt of fuel, up 9.9% year on year and TEPCO is looking for 1000 mW of gas turbines to be added in July, to prevent further blackouts and 9096MW of nuclear power currently closed-in offset. The company president, Masataka Shimizu, expressed the desire for the No. 3 nuclear reactor on the Kashizawaki re-Kariwa nuclear plant by the end of the year. The nuclear power plant experienced a number of issues from a 2007 earthquake, including 50 cases of radioactive water leak and fire in a transformer.
The EUA Dec11 contract lost ground during most of Wednesday as a weak energy complex is illustrated by a near-1% drop in the value of the German baseload power plants contract, pulled down to an intraday low of € 16.50 / t. Bargain buying in the afternoon could somewhat recover and provide the impetus for ending up 0.30% at € 16.64 / t. The regular German auction of 570,000 EUA futures on EEX erased € 16.62 / t. The EU has released additional details regarding its proposed CO2 tax on fuels used by industries that are currently outside the EU ETS, but they rely on the unanimous approval of EU member states, making the prospect of their successful launch highly uncertain. Under current proposals, the CO2 emissions will be taxed at € 20 per tonne, while the tax on the “real energy that a product generates” at € 9.60/GJ for fuels and € 0.15/GJ for heating fuels. The minimum tax on diesel should rise from the current € 0.33 / l to 0.412 € / l in 2018, while tax on gasoline would remain constant at 0.359 € / l. However, the majority of EU countries have taxes on fuel than the EU minimum. EU Taxation Commissioner Algirdas SEMETA said that the plan can 92Mta emissions.
CER futures rose Wednesday session with the command Dec11 weak, with a gain of 0.24%, compared to 0.32% and 0.29% seen for the Dec12 and Dec13 contracts, respectively. The EUA-CER spreads were essentially unchanged, with the Dec11 and Dec12 spreads finishing the day – and € 3.86 – € 4.87. The World Bank has reported that another sale of CERs from the UN Adaptation Fund is ready, raising U.S. $ 154m for 300,000 credits.
source:ifandp.com
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