MKT UpDate
Crude is lower/products are higher in quiet per-holiday trading.
There is little fresh news.
Japanese refiners are set to receive their full contracted term crude volumes from their Mideast suppliers in January--in the first 10 mths of this year the Mideast supplied 88,9% of Japan's total crude oil imports.
Crude imports totaled 3.01 mln bpd. (Platts)
U S stock index futures are seen setting new highs overnight (Reuters)
UBS raised their oil price forecast for Brent crude for 2020 by $2-7 depending on the quarter---they see Q1 2020 Brent at $60--Q2 at 62 and the second half of 2020 averaging 64 dlrs. (Reuters)
French workers are set to decide today whether they will halt production at refineries there --stepping up their recent protests. (U S News) --is this news behind some of the rally in products the past 2 days ?? Today February ULSD has made a fresh high for this rally - reaching a price not seen since the Saudi attacks in September.
Thursday ICE reported that Brent futures open interest had set a new record at 2,71 mln contracts - up 22% vs year ago....CME WTI futures open interest is at 2.15 mln contracts.
technically crude oil momentum(s) are poised to turn negative --while ULSD momentum is overbought and RB momentum is getting nearly overbought For today Feb WTI ( now the spot contract) has support at 6032-34 then 5980-83--with resistance seen at 6118-20 then 6147.
Feb RB support lies at 16990-94 then at 16869-72 ---resistance lies above at 17267-73.
Feb ULSD resistance is up at 20490 area --support at 21020-40 then 20025-28.
NG is up 4,5 cts after yesterday receiving positive news via the EIA data. Storage drew 107 bcf.
This was above expectations from news wires surveys of -88/-93 bcf.
Storage is still 618 bcf over yr ago (+22%) --but just about even up with the 5 yr avge.
News stories we saw yesterday re NG detailed the capex budget cutting by 1 large NG producer in the Haynesville region in 2020 by 35% from mid 2019 level...another story said that the 3rd largest gatherer of NG in the US was cutting spending in 2020 as activity slows in the Appalachia region.
The company set 2020 total growth capital budget in the range of $1.2-$1.3 billion compared with projected capex of $1.7 billion for 2019 - --Equitrans Midstream does all its business in the Appalachia region.
technically NG spot futures have positive momentum as it trades in the range of prices seen the last
10 days.....Resistance for Jan futures lies at 2342-44 then at 2377. Support lies at 2282-84 then at
2240-44 ---the overnight low is 2279.
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