|Day's range||39.98 - 40.59|
Stock rose on Thursday, as investors cheered the resiliency of a U.S. economy that created nearly 5 million jobs last month in the throes of the raging coronavirus pandemic.
Malaysia's massive palm oil industry has warned that the European Union's (EU) recent proposal to make its food industry more sustainable could eventually lead to stricter regulations for imports of the world's most-consumed vegetable oil. The Malaysian Palm Oil Council (MPOC) is worried that the EU, which is pushing for a "fair, healthy and environmentally-friendly food system" as part of its 2030 climate target plan, could decide to implement its own sustainability standard for palm oil. The EU, the third-largest buyer of Malaysian palm oil, announced a so-called "Farm to Fork " in May, raising alarm bells in the Southeast Asian country that is the world's second biggest producer and exporter of the edible oil.
Global supply of fuel oil, used by ships and power plants, is expected to grow in the third quarter, depressing the marine fuel market as shipping demand remains weak, analysts and trade sources said. Third-quarter supply is estimated to rise by 620,000 barrels per day (bpd) from the second quarter as China and Brazil increase production, according to consultancy Energy Aspects. This comes as inventories across key marine refuelling hubs recently reached all-time highs, depressing bunker fuel prices and refiners' margins and dashing hopes for a profitable year for sellers of low sulphur fuel that meets new emission regulations set by the International Maritime Organization.
Oil fell below $43 a barrel on Friday as a resurgence of coronavirus cases raised concern that fuel demand growth could stall, although crude was still headed for a weekly gain on lower supply and wider signs of economic recovery. The United States reported more than 55,000 new coronavirus cases on Thursday, a new daily global record for the pandemic. The rise in cases suggested U.S. jobs growth, which jumped in June, could suffer a setback.
Bitcoin briefly broke below $9,000 on Thursday, but the markets remain quiet.
US yields eased despite robust jobs numbers
Stocks along the U.S. Gulf Coast, known as PADD III, were near record levels following several weeks of cheap imports, sluggish exports and weak refining demand. Weakness in Gulf Coast prices, due to a glut of storage, has stemmed the flow of barrels to that region from inland. The amount of oil shipped from Cushing, Oklahoma, to the Gulf Coast in May was about 15,000 barrels per day lower than in March, according to Genscape.
Silver market has been noisy on Thursday as we awaited the jobs figure, but it looks as if the $18 level is going to continue to offer potential support.
Crude oil markets have been extraordinarily quiet over the last several days, and Thursday was going to be no different. We are currently stuck in a major range.
Helping to underpin crude oil prices this week were a pair of bullish reports from the (API) and the (EIA).
Natural gas markets gapped higher to kick off the trading session on Thursday, and then went back and forth to show a lot of volatility.
Gold markets have fallen a bit during the early hours on Thursday but has turned right back around to show signs of support near the $1765 level.
Oil tries to get more upside momentum above the key resistance level.
The British pound rallied significantly on Thursday but ran out of steam as the jobs number came out much better than anticipated in the United States.
The British pound rallied slightly during the trading session on Thursday against the Japanese yen as traders continue to grind this market a bit higher.
The Euro rallied on Thursday, waiting for the jobs number to come out. It looked rather strong but gave up the gains after the better than anticipated number.
The Australian dollar rallied a bit during the trading session after the jobs number came out in the United States better than anticipated.
"Not only will the world have lost 2+ years of demand growth, but the elasticity of oil product demand to global GDP will take a step-level change lower," the bank wrote in a note published on Wednesday. Jet fuel demand is unlikely to reach 2019 levels before 2023 as changing work habits, including telecommuting, and environmental regulations to limit carbon and other emissions will reduce demand for both jet fuel and gasoline. In the short term, deep production cuts by OPEC+ and non-OPEC+ producers along with recent capex cuts and project postponements could lead to a short-lived supply crunch, Citi said.
Upbeat U.S. jobs numbers helped oil prices jump over 5% on the week, gaining more than they lost the previous week. It was the second time in a month that oil bulls pulled off such a feat, despite the resurgence in U.S. coronavirus cases and threats of fresh curbs on the economy. New York-traded West Texas Intermediate, the benchmark for U.S. crude futures, settled up 83 cents, or 2.1%, at $40.65 per barrel after the U.S. Labor Department said the economy added 4.8 million jobs in June versus a forecast growth of 3 million jobs.
While retreating from last week's all time highs, current domestic stocks, at 533.5 million barrels, is still 13.9% above the year-ago figure and 15% over the five-year average.
S&P; 500 futures are gaining more than 1% in premarket trading as the economy added 4.8 million jobs in June.
Oil futures were little changed on Thursday, supported by a fall in U.S. unemployment and Wednesday's drawdown in crude inventories, but the spike in U.S. coronavirus infections fanned concerns that economic activity will weaken in coming weeks. New COVID-19 cases in the United States rose by nearly 50,000 on Wednesday, according to a Reuters tally, the biggest one-day spike since the start of the pandemic. U.S. West Texas Intermediate (WTI) crude futures lost 18 cents to $39.64 a barrel after a 1.4% rise on Wednesday.
The direction of the August WTI crude oil market on Thursday is likely to be determined by trader reaction to the 50% level at $39.36.