Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Weekly US oil data
Suspended animation
Much of the past week featured unusually low trading volume, oil prices hovering in a
relatively narrow range and mood swings between optimism and unease. This morning's
weekly data for the US, or the January monthlies released just now, don't offer much
resolution either. As if in suspended animation, we're all waiting to see if another shoe
drops in MENA, for Japan's nuclear crisis to be resolved and for generally bullish
sentiment to prevail. We still think that oil prices will trend modestly higher in 2Q from 1Q,
even without any further MENA supply disruptions. Seasonal drivers behind that minitrend
should include rising middle distillate and gasoline margins.
Producer and consumer anxiety
Among the more significant news items this week, Saudi Arabia decided to
accelerate upstream work. Service companies outlined a 30% jump in the Kingdom's
rig count to ~120 by next year, aimed partly at bringing online the last of a cluster of
upstream mega-projects. Work at Manifa had been slowed down drastically in late
2008 with oil minister Ali al Naimi explaining that work could wait until oil demand
picked up, which apparently it now has. By our count, global spare capacity is now
closer to 3 million barrels per day than 4mb/d. Paling in significance were policy
initiatives in Washington to speed up offshore drilling and accelerate efficiency gains.
Incremental data points from the demand side are still more bullish than bearish. The
latest from the Mideast, for instance, involves Baghdad awarding US$5.6billion worth
of power generation contracts to deliver clusters of 25 4MWh generators in 50
different locations across Iraq. When fully deployed these gensets would burn
150kbd of diesel, or a 25% increase of Iraq's oil demand.
Top three numbers in today’s weekly US oil data
Crude oil inventories add +2.9mbs – including +1.7mbs at Cushing, OK
Downstream stocks turned higher, +0.4mbs, reversing the downward trend
Demand growth remains weak at -0.2% (four week MA, y/y)
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Weekly US oil data
Suspended animation
Much of the past week featured unusually low trading volume, oil prices hovering in a
relatively narrow range and mood swings between optimism and unease. This morning's
weekly data for the US, or the January monthlies released just now, don't offer much
resolution either. As if in suspended animation, we're all waiting to see if another shoe
drops in MENA, for Japan's nuclear crisis to be resolved and for generally bullish
sentiment to prevail. We still think that oil prices will trend modestly higher in 2Q from 1Q,
even without any further MENA supply disruptions. Seasonal drivers behind that minitrend
should include rising middle distillate and gasoline margins.
Producer and consumer anxiety
Among the more significant news items this week, Saudi Arabia decided to
accelerate upstream work. Service companies outlined a 30% jump in the Kingdom's
rig count to ~120 by next year, aimed partly at bringing online the last of a cluster of
upstream mega-projects. Work at Manifa had been slowed down drastically in late
2008 with oil minister Ali al Naimi explaining that work could wait until oil demand
picked up, which apparently it now has. By our count, global spare capacity is now
closer to 3 million barrels per day than 4mb/d. Paling in significance were policy
initiatives in Washington to speed up offshore drilling and accelerate efficiency gains.
Incremental data points from the demand side are still more bullish than bearish. The
latest from the Mideast, for instance, involves Baghdad awarding US$5.6billion worth
of power generation contracts to deliver clusters of 25 4MWh generators in 50
different locations across Iraq. When fully deployed these gensets would burn
150kbd of diesel, or a 25% increase of Iraq's oil demand.
Top three numbers in today’s weekly US oil data
Crude oil inventories add +2.9mbs – including +1.7mbs at Cushing, OK
Downstream stocks turned higher, +0.4mbs, reversing the downward trend
Demand growth remains weak at -0.2% (four week MA, y/y)
No comments:
Post a Comment