|Day's range||39.90 - 40.95|
US oil and gas pipelines have grabbed the headlines at the start of this week, with three major projects facing cancellation as oil prices remain low
Royal Dutch Shell (RDS.A) and ExxonMobil (XOM) issued updates on their upcoming Q2 earnings, while BP plc (BP) agreed to sell its global petrochemicals business for $5 billion.
Iran has slashed crude oil production to its lowest level in four decades as storage tanks and vessels are almost completely full due to a fall in exports and refinery run cuts caused by the coronavirus pandemic, industry data showed. Total onshore crude stocks surged to 54 million barrels in April from 15 million barrels in January, and swelled further to 63 million barrels in June, according to FGE Energy. "However, it will technically not be possible to fill tanks to 100% given technical constraints at storage tanks and potential infrastructure bottlenecks," said Homayoun Falakshahi, a senior analyst at Kpler.
The Commitments of Traders report covering positions held and changes made by money managers in the week to June 30. A week that despite mixed price performances saw funds buying 18 out of the 24 major commodity futures tracked in this. The top five included corn, natural gas, soybeans, Brent crude oil and copper.
Oil prices edged higher on Tuesday as the U.S. government forecast higher fuel demand and lower production, overshadowing concerns that a surge in new coronavirus cases will hamper a demand recovery. "The market is popping because of the higher forecast demand, and jobs data," said Phil Flynn, senior analyst at Price Futures Group in Chicago. U.S. West Texas Intermediate (WTI) crude futures rose 27 cents, or 0.6%, to $40.90 a barrel, having fallen as low as $39.90.
Canada's drilling rig count, a bellwether of the oil and gas industry's growth, has plummeted far below previous records, raising risks that much of the country's equipment will permanently fall out of service. Just 18 rigs were active last week in the world's fourth-largest oil-producing country, a fraction of even the depressed levels of a year ago, according to Baker Hughes data. The fleet looks likely to shrink 25% in the next year from the current 500, as companies decide against costly recertifications of equipment, said Kevin Neveu, chief executive of Precision Drilling Corp <PD.TO>, one of Canada's biggest drillers.
Palm oil demand in India, the world's top edible oil importer, is set to plunge this year as coronavirus lockdowns slash food service sector demand and households opt for alternatives at the supermarket. India's palm oil imports could plunge 20% from a year ago to 7.5 million tonnes in the 2019/20 marketing year ending on Oct. 31, said Angshu Mallick, deputy chief executive of Adani Wilmar, a leading edible oil refiner in the country. Edible oil consumption in India trebled over the past two decades as the population rose, incomes increased, and people started to eat out more.
Data from the American Petroleum Institute industry group at 20:30 GMT on Tuesday is expected to show a 100,000 barrel rise in gasoline stockpiles.
Oil refineries are struggling as the worst demand-crash in decades cascades through the industry, leaving plants around the world at risk of closure. “As long as you keep running and the rival beside you falls over you’d be OK,” Mr Gelder said.
Investor caution over renewed coronavirus-related lockdowns buoyed the dollar and snuffed a five-day rally in most world equity markets on Tuesday, but was not enough to halt a hot streak in Chinese stocks. U.S. Treasury yields ticked lower as a rising caseload of COVID-19, the respiratory disease caused by the novel coronavirus, raised concerns about economic reopening plans. Investors remain concerned about the U.S. economic outlook, said Jim Barnes, director of fixed income for Bryn Mawr Trust in the Philadelphia suburb of Berwyn.
Strong gains in Chinese equities spilled over into US stocks which paved the way for higher gold prices. Stronger than expected US ISM services numbers helped add to riskier assets, which have been highly correlated gold, helping to buoy the yellow metal.
The crude oil markets rallied a bit against the backdrop of a positive Monday but find quite a bit of noise just above that they need to deal with.
Gold markets went back and forth on Monday, reaching towards the $1800 level but it looks like we still have the same resistance in that region.
The direction of the September E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to the 50% level at 25938.
British pound rallied a bit on Monday. This was helped by Chinese equities kicking off with the bank, bringing up the amount of risk appetite around the world.
Shares of Occidental Petroleum (NYSE: OXY) leaped 41.3% in June, according to data provided by S&P Global Market Intelligence. Occidental's stock started June on a high note. Two other factors added fuel to Occidental's rally last month.
Today’s session begins with the market up six days from its last main bottom. This means we should start watching for signs of a top.
S&P; 500 futures are pointing to a higher open amid global market optimism.
“Avangrid has above-average EPS growth potential from utility and renewables opportunities, along with upside options not yet priced in,” wrote Morgan Stanley.
Investing.com - Our senior markets analyst Jesse Cohen gives us his top five things to know in financial markets on Tuesday, July 7, including:
The direction of the August Comex gold futures contract on Monday will likely be determined by the pair of 50% levels at $1787.00 and $1780.90.
A strike at Coal India Ltd <COAL.NS> cut production by 56% in the three days ending July 4 as workers oppose opening up coal mining to the private sector, a senior company official told Reuters. The world's largest coal miner's production fell to 573,000 tonnes per day over the three days, compared with a June average output of 1.29 million tonnes per day. Offtake by customers, such as power generators, fell nearly 62% to an average of about 536,000 tonnes per day, the official said.