Morning Petrospective – June 9, 2011

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pec could not reach agreement Wednesday morning, and Iran, Venezuela and Algeria effectively shut down the Saudis in their attempt to raise output. They refused to consider any official increase in quotas and that left the conclave unable to reach agreement. The Saudis insisted that the market needs the oil now … but they simultaneously insisted that they would not refuse companies seeking additional supplies. Crude oil prices jumped, but refined products were mixed, with gasoline prices down on the day. Click here for extended commentary on OPEC.

The US dollar rallied on Wednesday, and it was essentially ignored. That is something that might catch up with prices later on. Oil prices can and have ignored the dollar on a number of occasions. But, they can only do it so often before it comes back to bite them.

This week’s DOE report showed builds in refined products stocks and a draw in crude oil stocks, which was more or less what analysts had been calling for, in terms of direction. Distillate stocks were forecast to be up very slightly and were down less than 100,000 barrels, which was actually the closest the wire service surveys got in their estimates.

 

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FMX Newswire

FMX Newswire is an overnight news summary designed to meet the needs of professional energy traders. The content is to-the point, professional grade and not widely reported in the mainstream media. All sources are professional respected firms and newspapers.

Bentek Energy

  • Supply/Demand Balance Analytic Report – Demand Slips and Daily Injection Increases
  • Power Burn Analytic Report – Power Burn Declines 2.2 Bcf/d on Cooler Weather
  • Storage Analytic Report – Preliminary Projection is Down To a Build of Only 54 Bcf
  • Southeast/Gulf Observer – Northeast Prices Encourage Higher Flows From Southeast and Canada

Platts

  • Iraq revising oil output target, with 7-8 mil b/d considered, says Luaibi.
  • Malaysia's Petronas says its floating LNG plant could be first to market
  • Sinopec says losses at Chinese refineries pile up as they refine more.  
  • Naimi: OPEC meeting "one of the worst we have ever had."

Bloomberg

  • Oil Gains for Third Day as OPEC Fails to Agree Quotas; U.S. Supplies Drop
  • EX-BP Chief Hayward Plans $1.6 Billion Oil IPO
  • Exxon Expands U.S. Gas Reserves With $1.7 Billion Purchase
  • OPEC Oil Accord Breaks Down After Six Nations Block Plan to Boost Output

Technical Recap

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