Headlines
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Concerns about economic recovery ease crude price
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Stronger dollar returns gold below 950 $/oz
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Base metals mostly higher
Brent and Distillates
Oil fell on softer shares as renewed concerns over the economic recovery emerged and the dollar strengthened. This morning crude has continued below 74 $/b also on softer Asian shares.
The Commodity Futures Trading Commission will start including more detailed classifications this month in its weekly reports on traders buying and selling futures on oil, wheat and other popular commodity contracts listed on regulated futures exchanges.
Exchange-traded funds (ETF( have become a top target in U.S. regulators' efforts to rein in excessive speculation in oil and other commodity markets, The Wall Street Journal reported on Saturday. Commodity ETFs, which came into existence in 2003, offer one of the few possibilities for small investors to gain direct exposure to commodity markets. The funds pool money from investors to make one-way bets, usually on rising prices.
A pipeline set to join China's energy demand with Russia's oil supply will spur production and spark refinery construction and, when fully flowing in 2012, could greatly reduce Beijing's need for crude from elsewhere. Even now Russian crude imports to China in the second quarter of this year rose by 30% from the first three months to average 346,692 b/d, a 37 % rise y/y.
China may raise domestic retail gasoline and diesel prices by around 6-8 % this week, the fourth hike this year, as benchmark crude prices topped 74$/b.
Venezuela promised to send China almost all its fuel oil output for three years in return for an upfront payment of 8 bln.$ as part of China's global push to ensure future supplies of key natural resources. Venezuela's President H. Chavez is a glad recipient of China's drive to tie down energy supplies in the medium term, which fits with his goal of reducing the country’s dependence on oil sales to the U.S.
Mexican state oil monopoly Pemex said on Friday it produced 2.561 mln.b/d of crude oil in July, an increase on June of 42,500 b/d. Output in June was affected by planned maintenance at its two largest oil fields, the Cantarell and Ku Maloob Zaap offshore deposits.
