Gulf Oil and Gas accountACCOUNT

The Oil Futures Market - Aug 05

Source: OPEC_RP050807 8/17/2005, Location: Europe

The futures market began July with continued strong bullish momentum from the previous month on concern over winter fuels in the Western hemisphere. The Nymex frontmonth August futures contracts saw a high well above $61/b in the first week amid the approach of Tropical Storm Cindy in the Gulf of Mexico. Non-commercials continued to boost net long positions for the straight fifth week to close 5 July some 11,000 lots higher at 33,000 contracts with open interest building 31,000 lots to peak over the 800,000 mark at 814,000. In the second week, the string of tropical storms continued as Hurricane Dennis was quickly followed by Tropical Storm Emily, helping Nymex futures to remain around the $60/b levels. Non-commercials continued to build net long positions although at a slower pace, rising 1,300 to 34,000 lots amid another significant build in open interest that rose some 14,000 contracts to 828,000.

However, as the storms spared the oil operations in the Gulf of Mexico, the Nymex WTI front-month eased later in the week. In the third week, as fears of weather-related supply shortfalls faded, the Nymex WTI futures contract slipped towards the $58/b level amid healthy build in distillate stocks. Speculators liquidated long positions significantly, dropping some 15,000 lots for net longs of 19,000 contracts.The final week saw a reversal in the futures market amid the prospect of stronger demand from China and concern over refinery snags reviving concern over gasoline stocks. The Nymex WTI September new month’s futures contracts rose to around the $59/b level. Non-commercials continued to decrease net long positions, which dropped 7,000 contracts to 12,000. Open interest also fell for the second week by a significant 20,000 lots towards the 800,000 level amid a drop of a similar magnitude by commercials. Open interest for July averaged 129,000 lots higher than the same period last year. When options are included, open interest closed almost 300,000 contracts higher at 1,327,000 contracts. The Nymex WTI prompt month average in July was $59.03 for a gain of $2.61 or nearly 5% over the previous month.

The contango continued for the ninth consecutive month. The 1st/2nd month spread was 9˘ wider than in the previous month to minus 97˘/b. The1st/6th month spread widened19˘ further to minus $2.49/b. The contango narrowed towards late second decade and early third decade of July on worries over a looming supply shortfall due to the early and active hurricane season amid a 7 mb draw on crude oil stocks in July. However, the healthy build in distillate stocks supported the forward structure to steepen into contango. US crude oil stocks in July were estimated at 318 mb, some 23 mb above the same time last year.

Financials and Investment News in Austria >>

Morocco >>  5/22/2019 - Sound Energy, the Moroccan focused upstream gas company, is pleased to provide an update on its strategy and operations. ...
Georgia >>  5/17/2019 - AIM-listed Block Energy, the exploration and production company focused on the Republic of Georgia, has completed a placing of 109,090,000 new Ordinar...

Saudi Arabia >>  5/17/2019 - Marubeni Corporation (hereinafter “Marubeni”) is pleased to announce that in April 2019, Shuqaiq Three Company For Water, owned by Marubeni, Acciona ...
South Korea >>  5/17/2019 - EnscoRowan has announced that an arbitration tribunal has awarded the Company $180 million in damages in its proceedings againstSamsung Heavy Industri...

United States >>  5/14/2019 - TGS-NOPEC Geophysical Company has announced that reflective of the Company’s strong financial and liquidity position and improving market outlook, the...
United States >>  5/10/2019 - Atlantica Tender Drilling Limited has received credit approvals from a syndicate of new and existing lenders for a new 4-year USD 100 million first li...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Austria Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 |

More News

Related Links

00 AL AT BE BG CH CY CZ DE DK ES FI FR GR HR HU IE IT NL NO PL PT RO SE SI TR UK
Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.