WTI crude futures traded under pressure during the European session weighed upon by strength in the USD-Index, together with growing signs of faltering global economic recovery.
Oil & Gas News:
· Iran is poised to reduce next month’s crude export prices to the lowest level this year after cuts by Saudi Arabia yesterday. National Iranian Oil Co. will set Iranian light for September shipment at USD 1.01 a barrel over the average of Persian Gulf benchmark Oman and Dubai grades, down USD 0.60 from August, based on quarterly formula tied to Saudi prices. In other news, Indian Oil Corp. will make a payment to Iran for oil soon, according to the chairman R.S. Butola.
· Goldman Sachs reduced its estimate for US end-summer natural gas inventories by 1% after the recent heatwave, while forecasting prices will remain under pressure as temperatures ease.
Geopolitical News:
· Beijing has called a Japanese report criticising a lack of transparency in China’s military spending “irresponsible”, and expressed its strong dissatisfaction with the paper.
· Moves by Iran to deploy more-advanced centrifuge machines for the production of nuclear fuel are raising new concerns that Tehran could significantly shorten the time it would need to produce nuclear bombs. In related news, Iran has no intention of making an atomic bomb and its nuclear programme is for purely peacefully purposes, President Ahmadinejad said.
Corporate News:
· China National Petroleum Corporation (CNPC) is moving ahead with plans to develop fields in Iran, despite pressure from the US, which is leading international sanctions against the Islamic republic.
Weather News:
Weather Derivatives forecast sees average temp. in the US for the next 6-10 days to be 0.8F above the average at this time of the year. The data is accurate as that of 3rd August, 2011.
NHC reported:
· Tropical storm Emily is near the south coast of the Island of Hispaniola. Emily is moving toward west-northwest near 7mph, a turn toward the northeast with an increase in forward speed is expected during the next day or so. Centre of Emily will move across the south-western Peninsula of Haiti later today and move over extreme Eastern Cuba tonight or early Friday. Maximum sustained winds remain near 50mph with higher gusts, tropical storm force winds extend outward up to 115 miles.
· Tropical storm Eugene maintains its strength and is expected to weaken soon. Is moving toward the west-northwest near 14mph and this general motion is expected to continue for the next couple of days. Hurricane force winds extend outward up to 45 miles.
NYMEX WTI Nat Gas
Last (USD) Change (USD) Volume Last (USD) Change (USD) Volume
Contract Sep11 91.1 -0.83 30351 Sep11 4.093 0.003 2044
Oct11 91.51 -0.82 5345 Oct11 4.104 0.002 1133
Nov11 91.93 -0.85 1838 Nov11 4.23 0.008 370
Prices taken at: 1204BST
Sources: RTRS/ National Hurricane Centre/upstreamonline
ENERGY MARKETS REPORT INCLUDING: Iran is poised to reduce next month’s crude export prices to the lowest level this year
Last updated: 13:28 04 Aug 2011 BST, First published: 12:28 04 Aug 2011 BST