Connell Oil

NEW YORK (DTN) — New York Mercantile Exchange oil futures bounced back in pre-market trade immediately after a closely monitored government report came in better-than-expected, prompting a snapback rally across commodities and equities markets. However, the enthusiasm quickly ebbed and oil prices pared gains and were mixed at the start of regular trade, and were slightly lower at last look.

   At the 9:00 AM ET opening bell, October NYMEX WTI crude futures were down 7cts at $74.95 bbl. In products trade, October NYMEX No. 2 heating oil futures was down fractionally at $2.0613 gal. October NYMEX RBOB gasoline futures were also down fractionally at $1.9150 gal.

   Crude futures are expected to continue trading within a narrow range, though prices could be volatile in part because of low trade volume ahead of the long Labor Day weekend.

   The Labor Department’s August nonfarm payroll data showed that private employers hired 67,000 workers in August while a net 54,000 people lost their jobs during the month compared to market expectations that job losses would climb to as high as 110,000.

   August unemployment rate matched expectations, rising to 9.6 percent from 9.5 percent in July. A weak labor market has been a drag on the economy, and jobs are an important factor in gauging the oil demand outlook .

   The knee-jack reaction by oil and equity markets was positive even as analysts continued to comb through the jobs report for illuminating details, including revisions to July data reflecting a net gain of 67,000 jobs.

   Today’s jobs report has eased the prospects of a doomsday scenario talked in the market in recent days, said analysts.

NEW YORK (DTN) — New York Mercantile Exchange oil futures extended gains at the start of regular trade Wednesday morning, bolstered by investor optimism after Chinese data showed growth in the manufacturing sector.

   At the 9:00 AM ET opening bell, October NYMEX WTI crude futures were up 90cts to $72.82 and continues to advance after the open. The contract has been trading within a tight range for the past five sessions.

   In products trade, new spot-month October NYMEX No. 2 heating oil futures rose 3.58cts to $2.0275 gal while October NYMEX RBOB gasoline futures were 2.74cts higher at $1.8848 gal.

   Oil and equity markets ignored weak jobs data from payroll firm ADP Employer Services this morning, with oil traders also closely watching Hurricane Earl.

   The hurricane could have some impact on gasoline production and consumption in the U.S. east coast. Parts of the region are under hurricane warning.

   Refiner Sunoco said this morning that it’s closely watching Earl’s path and will take precautionary measures to protect its staff and property if necessary.

   Sunoco is a leading refiner in the Northeast region, with a 178,000 bpd refinery in Marcus Hook and a 335,000 bpd refinery in Philadelphia, Pennsylvania.

   Meanwhile, the oil market is awaiting inventory data from the Energy Information Administration that’s expected to show a build for U.S. crude stockpiles. Both the oil and equity markets are also awaiting U.S.

manufacturing data for August.

Bullish report so the small drop in prices yesterday will rebound today as diesel remains short in the NW

NEW YORK (DTN) — New York Mercantile Exchange oil futures were lower at the start of regular trade on Tuesday morning, but pared the losses after S&P/Case-Shiller index on home prices came in better-than-expected.

   The S&P/Case-Shiller index on home prices in 20 major cities across the U.S. showed a 4.2 percent jump for June compared to year earlier levels.

   At the 9:00 AM ET opening bell, October NYMEX WTI crude futures were down 97cts to $73.73, with the contract set to test initial support near $69.50 to $71.00 bbl.

   In products trade, September NYMEX No. 2 heating oil futures fell 1.42cts to $2.0110 gal, but pared the losses soon after the open. Major support for the contract is seen at the August low of $1.9256 followed by the July low of $1.8968.

   September NYMEX RBOB gasoline futures were down 1.79cts at $1.9162 gal before paring the losses after the open. Support is near $1.9000.

   Oil prices fell in overnight trade largely on economic concerns and expectations that U.S. crude inventories rose last week. Oil futures were shallowly mixed shortly after the open however, but have since resumed to the downside.

   Investors for the rest of the week will be looking to manufacturing data due out on Wednesday and August nonfarm payrolls data due on Friday for additional clues about the strength of the U.S. economy.

   Both September NYMEX RBOB and heating oil futures contracts will expire at the close of regular business today, which could make for seesaw trading .

NEW YORK (DTN) — New York Mercantile Exchange oil futures were mixed at the start of regular trade Monday morning following mixed U.S. data detailing consumer spending rose more-than-expected in July while incomes came in below expectations. The oil contracts have since extended to the downside.

   At the 9:00 AM ET opening bell, October NYMEX WTI crude futures were down 41cts to $74.76 after trading to a pre-market low of $74.57.

Technically, support is seen near $69.50 to $71.00 after the spot-month crude contract bounced off Aug. 25′s 11-week low on its spot continuation chart at $70.76.

   In products trade, September NYMEX No. 2 heating oil futures dipped 0.42cts to $2.0401 gal after trading to a pre-market low of $2.0314, with initial support seen near $1.9855 to $1.9865.

   September NYMEX RBOB gasoline futures were up 0.13cts to $1.9492 gal after bouncing off a pre-market low of $1.9384. Support remains near

$1.8845 to $1.8860, with resistance pegged near $1.9715 on their spot continuation chart.

   Peter Beutel, president of Cameron Hanover, said RBOB futures should move higher within an extended trading range.

   Oil prices were under pressure in overnight trade as traders booked profits on concerns about slowing U.S. economic growth and growing U.S. oil inventories.

   On Wall Street, stock futures were lower, adding pressure on oil prices.

The dollar index was turned higher after being lower in overnight trade. A stronger dollar makes oil less attractive to investors.

NEW YORK (DTN) — New York Mercantile Exchange oil futures were mixed in pre-market trade this morning after edging up overnight, while U.S. stock futures posted modest gains ahead of U.S. Gross Domestic Product reading for the second-quarter that’s expected to show a slowdown in economic growth.

   The oil and equity markets were also awaiting an economic speech later today by Federal Reserve Chairman Ben Bernanke that’s expected to lay out measures the Fed would take if economic growth continues to slide.

   Meantime, excess oil supply and soft product demand continues to curb a further advance for oil prices while key technical support for spot-month October WTI crude held near $70 on the spot continuation chart.

   The Energy Information Administration’s inventory data for the week-ended Aug. 20 was largely bearish, with crude and gasoline supplies unexpectedly soaring, while distillate supplies rose more-than-expected.

   The U.S. dollar was weaker in overnight trade, boosting oil prices before turning slightly higher a short while ago.

   At 8:00 AM ET on Friday, October NYMEX WTI crude futures were up 1.0cts to $73.37 after paring earlier gains. The contract hit an overnight high of $73.75, which is well off Wednesday’s 11-week low on its spot continuation chart at $70.76. October Brent futures rose 27cts to $75.29 bbl on London’s ICE Futures.

   In products trade, September NYMEX No. 2 heating oil futures were up 0.12cts at $2.0104 gal after trading overnight to a high of $2.0190, well off Wednesday’s 6-1/2-week low on the spot continuation chart at $1.9256.

   September NYMEX RBOB gasoline futures were up 0.42cts at $1.9127 gal after trading to an overnight high of $1.9186, and off Wednesday’s nine-month low on the spot continuation chart at $1.8241.

NEW YORK (DTN) — New York Mercantile Exchange oil futures rallied sharply immediately after federal data came out showing initial jobless claims fell more-than-expected before giving up some the gains at the start of regular trade Thursday morning.

   At the 9:00 AM ET opening bell, October NYMEX WTI crude futures were up 56cts at $73.08 after trading a short while ago to a pre-market high of $73.76, having pulled up from Wednesday’s 11-week low on the spot continuation chart of $70.76.

   The spot-month crude contract is expected to test initial technical resistance near $74.60, with major support holding near $69.50.

   In products trade, September NYMEX No. 2 heating oil futures were up 2.45cts at $1.9951 gal at the open, after rising to a pre-market high of $2.0072, off Wednesday’s 6-1/2 week low on the spot continuation chart at $1.9256. Initial resistance is seen near $2.0185, and then at $2.0420.

   September NYMEX RBOB gasoline futures were up 2.43cts at $1.8882 gal, after climbing to a pre-market high of $1.8600, well off Wednesday’s nine-month low on the spot continuation chart at $1.8241. Short-term resistance is seen at near $1.9375, and then at $1.9715.

   Oil prices were already consolidating gains from Wednesday when the Labor Department released data today at 8:30 AM ET showing that weekly initial jobless claims fell by a more-than-expected 31,000 to 473,000, reinforcing optimism that boosted oil and equities during overnight trade.

   Oil prices were also buoyed by technical factors and a weaker U.S.

dollar, which edged out concerns about rising U.S. oil inventories and soft demand.

P5 is the Northwest…  Diesel prices will remain high and will not follow the National trend do to the increased demand.  I would not expect to see any relief in Diesel prices in the next 2-3 weeks

NEW YORK (DTN) — New York Mercantile Exchange oil futures tumbled as
Monday’s sell-off continued across various commodity and equity markets
during overnight trading. Investors were nervous about the global economic
recovery after recent data suggested U.S. growth was slowing.
  Oil traders were also worried about a persistent U.S. supply overhang,
with no major inventory drawdown expected before Labor Day, which usually
marks the end of the peak driving season. Analysts said the economic
slowdown could further erode demand for gasoline and winter fuels.
  Meantime, the U.S. dollar continued to rally against a basket of rival
foreign currencies, adding pressure on oil prices. The dollar index was up
0.3 percent this morning.
  The market is now waiting for U.S. data on existing home sales for July,
which are expected to be weaker than for June, and U.S. oil inventory data
for the week-ended Aug. 20, which are expected to show a small drawdown for
gasoline and small builds for heating oil and crude supply. The American
Petroleum Institute will issue its data at 4:30 PM ET today.
  At 8:00 AM ET on Tuesday, October NYMEX WTI crude futures were down
82cts at $72.28 after trading overnight to a fresh 6-1/2 week low on the
spot continuation chart at $72.02. October Brent futures were down 73cts at
$72.89 bbl on London’s ICE Futures.
  In products trade, September NYMEX No. 2 heating oil futures were down
1.40cts at $1.9414 gal, after trading to a fresh 6-1/2 week low on the spot
continuation chart at $1.9360. September NYMEX RBOB gasoline futures were
down 1.59cts at $1.8651 gal, after falling to a fresh 6-1/2 month low on
the spot continuation chart at $1.8608.
  On weather, the National Hurricane Center upgraded for Tropical Storm
Danielle that’s swirling over the Atlantic to a hurricane 2 status. The
hurricane’s track is headed for Bermuda however, posing no threat to oil
and gas facilities in the Gulf of Mexico.

   NEW YORK (DTN) — New York Mercantile Exchange oil futures edged up in the early pre-market trade on Monday as the U.S. dollar weakened and equities kicked off the new week firmer.

   At 8:00 AM ET on Monday, new spot-month October NYMEX WTI crude futures were up 55cts at $74.37 after trading between an overnight high of $74.42.

October Brent futures were up 60cts at $74.86 bbl on London’s ICE Futures this morning.

   The September WTI crude contract expired on Friday after falling to a six-week low on its spot continuation chart at $73.19 amid concerns about slowing U.S. economic recovery and excess inventories.

   In products trade, September NYMEX No. 2 heating oil futures were up 1.31cts at $1.9841 gal from Friday’s settlement and off a six-week low on the spot continuation chart at $1.9682. September NYMEX RBOB gasoline futures were up 1.05cts at $1.9356 gal from Friday’s settlement and off a three-month low on the spot continuation chart at $1.9085.

   Market watchers said a slower U.S. economic growth would further erode fuel demand and pressure oil prices. Oil inventories are currently above their five-year averages for this time of the year.

   The dollar index eased 0.23 percent this morning, making oil a more attractive investment, after euro-zone purchasing managers’ index came in a better-than-expected 55.6 in August. The index was compiled by industry research firm Markit.

   The European purchasing data as well as revved up mergers and acquisitions boosted investor optimism and led to higher equities.

   On weather, the National Hurricane Center said Tropical Storm Danielle strengthened over the Atlantic although it was headed for Bermuda, posing no threat to oil and gas facilities in the Gulf of Mexico.

NEW YORK (DTN) — New York Mercantile Exchange oil futures opened the regular trade session lower this morning, with September WTI crude futures expected to test short-term support near $71.09 bbl after falling overnight to a fresh six-week low on the continuation chart at $73.24.

   Oil futures prices fell on concerns that a slowing U.S. economic growth would further erode fuel demand. Oil prices also came under pressure as global stock markets tumbled and the U.S. dollar rose to a five-week high against the euro.

   At the 9:00 AM ET opening bell, the September crude contract was down 98cts at $73.45 bbl. The contract will expire at the close of trade this afternoon and so analysts expect volatility amid position squaring.

   In products trade, September NYMEX No. 2 heating oil futures were down 1.69cts at $1.9838 gal at the open, after falling overnight to a 3-1/2 week low on the spot continuation chart at $1.9771. The contract is set to test initial support at $1.9760 and then key support at $1.9500.

   September NYMEX RBOB gasoline futures were 1.40cts down at $1.9147 gal at the open, after falling to a near three-month low at $1.9085 on the spot continuation chart. The contract is seen challenging initial support at $1.910 gal, and then at $1.8715.