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Showing posts with label Drops. Show all posts
Showing posts with label Drops. Show all posts

Tuesday, August 2, 2011

Commodity Corner: Oil Drops 1.2% on Econ Woes

- Commodity Corner: Oil Drops 1.2% on Econ Woes

Tuesday, August 02, 2011
Rigzone Staff
by Saaniya Bangee

Crude oil futures continued to retreat Tuesday as economic concerns weighed on the market.

At its lowest in more than a month, light, sweet crude settled lower at $93.79 a barrel, down $1.10 from yesterday. Tuesday's trading session reached lows last seen on June 28.

Early Tuesday, a U.S. Commerce Department report showing a drop in consumer spending for the first time in nearly two years weighed down oil prices. The report also showed that incomes barely rose for the month of June.

Analysts believe that the series of negative economic data is overshadowing the U.S. deficit-cutting package.

The Brent contract traded between $115.77 and $118.36, before settling at $116.46 a barrel on the ICE Futures exchange in London. The 35-cent day-on-day drop came on supply disruptions in the North Sea and a refinery fire in Taiwan.

Futures for September natural gas decreased 3.3 cents Tuesday, closing at $4.155 per thousand cubic feet. According to the National Hurricane Center, the Caribbean's latest storm Tropical Storm Emily could pick up strength in a day or two; but, as of now, the storm poses a low threat to the Gulf's output. Approximately 7.4 percent of the U.S. natural-gas production lies in the Gulf of Mexico.

Natural gas prices fluctuated between $4.135 and $4.23, maintaining a similar trading range to Monday's session.

Gasoline blendstock for September delivery dropped for a fifth consecutive session, closing at $3.04 a gallon.

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Friday, July 29, 2011

Oil Drops Near $96 After Weak US GDP Report

- Oil Drops Near $96 After Weak US GDP Report



Jul 29, 2011

The price of oil dropped $96 a barrel on Friday after the U.S. government said the economy is at an insufficient 1.3% annual rate in the Q2.

The data raised questions about demand for oil over the months. The Commerce Department also revised the January to March figures to display growth in the first six months was the weakest since the recession ended two years ago.

Oil prices have varied over the month, from $94.90 a barrel on July 1 to 98.87 on July 22 before making another fall.

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Thursday, June 23, 2011

Commodity Corner: Crude Drops on IEA's Surprise Move

- Commodity Corner: Crude Drops on IEA's Surprise Move

Thursday, June 23, 2011
Rigzone Staff
by Saaniya Bangee

Crude prices plummeted to a four-month low Thursday after the International Energy Agency (IEA) said it would release an emergency oil supply to alleviate high prices.

In an attempt to offset the supply disruption caused by Libya's civil war, the IEA said it will release 60 million barrels of oil over a 30-day period. Its members will release 2 million barrels of oil per day (bpd). Half of the amount will be provided by the U.S. Strategic Petroleum Reserve, which currently stores 727 million barrels of crude.

The IEA last tapped emergency resources in September 2005 after Hurricane Katrina disrupted production on the U.S. Gulf Coast.

Light, sweet crude lost $4.39 Thursday, settling at $91.02 a barrel. Prices traded as low as $89.69 and peaked at $94.47. Meanwhile, Brent crude ended Thursday's session at $107.26 a barrel, down $6.95. Goldman Sachs claims IEA's surprise release could cause Brent prices to decrease by $10-$12 a barrel by the end of July.

Likewise, natural gas for July delivery settled lower at $4.193 per thousand cubic feet. The drop came on government reports showing an increase in U.S. inventories. The U.S. Energy Information Administration (EIA) said stockpiles grew by 98 billion cubic feet last week. This marks the year's second-largest increase in U.S. natural gas inventories.

The intraday range for natural gas was $4.15 to $4.34 Thursday.

Front-month gasoline futures settled down 13.57 cents at $2.84 a gallon. Prices fluctuated between $2.785 and $2.955 a gallon.

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Wednesday, June 15, 2011

Germany Unveils New Africa Policy, Drops Sudan Visit

- Germany Unveils New Africa Policy, Drops Sudan Visit

Wednesday, June 15, 2011
Deutsche Presse-Agentur (dpa)

Germany unveiled its new policy towards Africa, which shifts the stress away from selfless development aid and puts more emphasis on the German interest in obtaining minerals and oil.

Foreign Minister Guido Westerwelle set out the details just before he was due to leave Berlin on a visit to Sudan. His trip was however cancelled because drifting ash from a volcano erupting in Eritrea, made aviation in the area unsafe.

German business is to be encouraged to negotiate deals that combine investment in the 53-nation continent with extraction rights under the new policy.

The European country's approach to Africa would be "internally consistent, set realistic objectives and serve our values and interests," according to the policy paper.

The center-right government's policy is binding on all ministries and agencies dealing with Africa.

Germany was a colonial power in Africa until the end of the First World War in 1918, when it lost control of all the territories that are today known as Namibia, Tanzania, Rwanda, Burundi, Cameroon and Togo.

Its interest in Africa revived in the post-colonial period, with many Germans eager to use their wealth to end world poverty, but disillusionment soon set in amid reports of waste and corruption.

Under the new policy Berlin adopts a tougher approach to Africa, that requires future development aid spending to achieve "value for money" and better market access for German companies. The 29-page policy document talks of a "partnership between equals" and gives "peace and security in our neighborhood" as Germany's prime objective.

The document also mentions "irregular migration" from Africa as something Berlin wants to prevent.

The paper said Germany will stress its own values in Africa, including good governance and democracy, and hopes the 32 African nations that allow the death penalty will abolish it.

Berlin will also push for more rights for women and an end to laws against homosexuality. However the policy paper does not suggest that aid would be conditional on such countries changing their laws.

"We don't need to infect Africa with the germ of a love of freedom. It exists there already," said Westerwelle.

Referring to the revolts in North Africa, he said, "What we are experiencing in Africa is perhaps the most fascinating proof that the world is changing."

Africa was not being given a big enough place in world diplomacy, according to Westerwelle, noting that no African nation had a permanent UN Security Council seat.

"Africa is seriously under-represented in the global balance," he said.

Several aid groups in Berlin criticized the proposals to put aid under tough scrutiny and require it to yield economic benefits.

A joint response by several non-government organizations said the policy ignored the reality of the lives of the majority of Africans who live in rural areas, putting business interests ahead of beating poverty.

One aid group, Welthungerhilfe criticized the policy's hostility to import controls that protect African industries.

"Sometimes it serves economic development to protect newly created markets for a certain time," said the group's secretary, Wolfgang Jamann.

Chancellor Angela Merkel's cabinet meanwhile passed a resolution to recognize southern Sudan as Africa's 54th independent state when it gains independence from Khartoum on July 9. Westerwelle had been set to visit both parts during his scheduled three-day trip.

Germany will be chairing the UN Security Council when the new state is admitted to the UN next month.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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Tuesday, May 17, 2011

Commodity Corner: Oil Drops on Weak Economic Data

- Commodity Corner: Oil Drops on Weak Economic Data

Tuesday, May 17, 2011
Rigzone Staff
by Saaniya Bangee

Oil prices continued to fall Tuesday on disappointing economic data and concerns about the euro's stability.

Light, sweet crude futures dropped $1.34, settling at $96.03 a barrel Tuesday. According to the U.S. Commerce Department, housing starts declined by 10.6 percent in April to 523,000. Additionally, the Federal Reserve reported a 0.4 percent decrease in April's industrial production—the first drop in 10 months. A decrease in industrial production represents a weak economic situation, signifying a lower demand for goods including crude oil.

Earlier in the day, the dollar received a boost as concern escalated on the instability of the euro. The euro retreated from earlier losses but remained vulnerable on anticipation that Greece may restructure its debt.

The intraday range for June crude was $95.02 to $97.81.

Likewise, gasoline futures also fell again Tuesday. Traders continued to sell Tuesday as fears eased over the effect of the Lower Mississippi River flooding on the refinery corridor from Baton Rouge to New Orleans. Front-month gasoline traded between $2.84 and $2.95 before settling a penny lower at $2.92 a gallon.

A report that industrial production declined in April caused natural gas prices to decrease for the first time in four days. Analysts worry that the data may cause the demand for fuel to soften. Natural gas futures settled at $4.25 per thousand cubic feet, down seven cents from Monday. Prices peaked at $4.33 and bottomed out at $4.16 Tuesday.

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