Confusing Signals Has Crude Oil On A Roller Coaster

Confusing Signals Has Crude Oil On A Roller Coaster

Crude oil fell on Thursday as weak manufacturing data from China, the world’s No. 2 oil consumer, prompted investors to take profits after several days of gains. Crude oil is trading at 105.54 gaining 5 cents in the early morning session on Friday. Crude oil prices recovered from early losses to close marginally higher, supported by positive US durable goods data and chart based buying during intra-day trades on Thursday. American factories received more orders for automobiles and machinery in June, pointing to a pickup in manufacturing that will help propel the world’s largest economy in the second half of 2013. Bookings for goods meant to last at least three years rose 4.2 percent. WTI was poised for the first weekly decline in more than a month as rising crude production countered signs of economic growth in U.S., the world’s biggest oil consumer.

An EIA report on Thursday stated that global oil consumption will rise 32 percent through 2040 and fossil fuels will continue to supply the vast majority of energy needs even as use of renewable and nuclear fuels grows. The EIA didn’t release an international energy outlook report in 2012. In 2011, it said it expected world energy consumption to grow by 53% from 2008 to 2035. Back on the Nymex; other energy futures were broadly lower with Natural Gas falling to trade at 3.646 this morning.

U.S. crude inventory data from the government published Wednesday showed a fourth weekly decline, though total inventories remain well above the five-year average. Supplies averaged a four-week decline of nearly 30 million barrels.

Natural-gas futures had turned lower Thursday after the EIA reported a supply climb of 41 billion cubic feet for the week ended July 19. Analysts polled by Platts expected a rise of between 47 billion cubic feet and 51 billion cubic feet. The natural-gas market “still faces cooler temperatures going forward that may translate into above-average storage injections in the weeks ahead,” said Citi Futures’ Evans. Natural gas futures fell more than 1%, despite a report from the US Energy Information Administration showing that natural gas supplies rose less than expected last week.

The Bureau of Safety And Environmental Enforcement and U.S. Coast Guard said Thursday that natural-gas flow in the well off the shore of Louisiana, operated by Walter Oil and Gas of Houston, has stopped. The well ruptured Tuesday. Last year when a well exploded production in the gulf region was closed down for almost a month.