|Day's range||41.94 - 41.94|
A rapid-fire succession of setbacks for big energy pipelines in the United States this week has revealed an uncomfortable truth for the oil and gas industry: environmental activists and landowners opposed to projects have become good at blocking them in court. The latest setbacks have increased the difficulty for developers of billions of dollars worth of pipeline projects in getting needed permits and community support. The oil industry says the pipelines are needed to expand oil and gas production and deliver it to fuel-hungry markets, but a rising chorus of critics argue they pose an unacceptable future risk to climate, air and water.
Oil prices were broadly stable on Wednesday, recouping earlier losses after rising U.S. crude stockpile data and an increase in coronavirus infections in the United States cast doubts over a swift pickup in oil demand. U.S. West Texas Intermediate (WTI) crude futures dropped 8 cents to $40.54 a barrel. The U.S. coronavirus outbreak crossed a grim milestone of over 3 million confirmed cases on Tuesday as more states reported record numbers of new infections.
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
Silver markets fell on Tuesday but then turned around at the $18.25 level. Because of this and gold trying to break out, silver looks very bullish.
Crude oil markets dipped slightly on Tuesday but found support again to turn around and pressed the resistance barrier that we have been fighting all along.
Oil prices were little changed on Tuesday on expectations that U.S. crude stockpiles saw another sizable draw last week amid concerns about the future demand for energy from the evolving new wave of the coronavirus. New York-traded West Texas Intermediate, the benchmark for U.S. crude futures, settled down a penny at $40.62 per barrel.
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 settled little changed on Tuesday as demand concerns due to a new surge in coronavirus cases overshadowed U.S. government forecasts for lower production. Early in the session, the market popped because of the higher forecast demand, and more bullish jobs data, said Phil Flynn, senior analyst at Price Futures Group in Chicago. The U.S. Energy Information Administration (EIA), forecast that global oil demand would recover through the end of 2021, predicting demand of 101.1 million barrels per day (bpd) by the fourth quarter of next year.
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 snapped a five-day rally in most world equity markets on Tuesday, but was not enough to halt a hot streak in Chinese stocks. The dollar edged higher as risk currencies such as the Australian dollar took a breather from recent gains and gold dipped as investors booked profits after bullion rallied to a near eight-year peak, trading around $1,780 an ounce. Bourses in London <.FTSE>, Paris <.FCHI> and Frankfurt <.GDAXI> fell about 1% for most of the session before paring some losses, while losses were greater on Wall Street even as the Nasdaq posted a fresh intraday high before closing down.
Investing.com - Our senior markets analyst Jesse Cohen gives us his top five things to know in financial markets on Tuesday, July 7, including:
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.