Morning Petrospective – April 18, 2011
key measure of consumer prices rose just 0.1% in March, and consumer sentiment was reportedly better while manufacturing in New York increased at its fastest rate in 12 months. The Federal Reserve’s Bank of New York economic index increased to 21.7 from 17.5 in March. The index covers New York, northern New Jersey and southern Connecticut and readings in positive territory indicate growth. This report did show raw materials prices at their highest level since August, 2008, but markets were more interested in stronger factory activity.
This report suggests that manufacturing is leading economic growth right now and it is as strong as it has been in two or three years or more. The University of Michigan/Reuters index of consumer sentiment increased to 69.6 in April from 67.5 in March. The index had been expected to improve to a reading of 68.8, and that means it was stronger than expected. The CPI core index was up 0.1% in March, despite a 0.8% increase in food and a 5.6% increase in gasoline prices. The annualized rate of CPI inflation is only 2.7% right now, and that was seen as offering room for continuing growth before inflation will need to be faced.
On Sunday, Libyan forces loyal to Colonel Khadafi hammered away at rebel positions at the western gate of Ajdabiya. Hundreds of civilians were forced to scramble out of the city to avoid being caught by the loyalist artillery fire. This followed Saturday’s intensive rocket attacks on rebel positions by Khadafi loyalists. AFP noted in dispatches that the rockets have a 20-mile range, which suggests that Khadafi’s forces are that close to Ajdabiya.
AFP quoted desperate rebels and their civilian sympathizers as having asked imploringly, “Where is Nato? Where are the British, French and Americans?” Whether Nato has decided to help the rebels as true allies may be an academic exercise to everyone except the rebels; they regard the help as indispensible.
Also on Sunday, opposition forces claimed to have swept out a number of snipers making life miserable in Misrata. There was also a report of a burning loyalist tank in the center of Misrata. AFP also quoted residents of Misrata saying they had seen bomblets falling from the sky “like rain,” suggesting the use of “cluster bombs,” or weapons that explode and then spread out over an area choking it with explosions. These are illegal, especially in civilian areas and Khadafi forces have denied using them. A New York Times crew first reported the use of what it believed were cluster munitions.
Nato strikes were reported against Khadafi positions in Brega, in Khadafi’s hometown of Sirte, and in the Al-Hira region, 30 miles southwest of Tripoli. French Foreign Minister Alain Juppe said on Saturday that a new UN Security Council resolution seeking Khadafi’s removal from power was unnecessary because “given his behavior, his savage repression of the population, Khadafi has lost all legitimacy to stay in power.” He went on to add, “That is the view of the United States, of Great Britain, of the 27 members of the European Union, of the Arab League, and there is no need for a new Security Council resolution to enact this principle.” Still, it might be nice to hear something from Brazil, India, Russia and China on this topic. Russia has been pushing for an immediate ceasefire while a number of diplomats have been pushing for delivery of humanitarian aid.
FMX Newswire
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Bentek Energy
- Supply/Demand Balance Analytic Report – US Dry Production Climbs Back to 61.0 Bcf/d.
- Industrial End Users Analytic Report – After A Weak Weekend, Industrial Demand Picks Up.
- Texas Observer – Higher Regional Demand This Week Should Lift Ship Channel Basis.
- Power Burn Analytic Report – Power Burn to Increase 1.4 Bcf/D Tomorrow.
Platts Oil
- US House Democrats say oil and gas producers used 780 mil gals of sometimes toxic hydraulic fracturing products from 2005 through 2009.
- Entergy has asked a US court to block Vermont from moving to shut the company's Vermont Yankee nuke plant in less than a year.
- Oil markets have sufficient supply despite the loss of most Libyan crude production, OPEC secretary general Abdalla el-Badri said Monday
- 2 million barrels of special Saudi crude blend meant to replace lost Libyan crude has found no buyers, OPEC secretary general Badri says.
Bloomberg
- Oil Declines in New York After Saudi Arabia Says Market Is `Oversupplied'.
- Halliburton Profit Rises on North American Oil Output Increase.
- Tepco Sets Plan to End Fukushima Nuclear Crisis by Oct.
- Aussie Rides Commodity Boom as Credit Suisse Joins RBS in Seeing 4% Gains.
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