Copyright © 2010 Reed Business Information Limited. ICIS Pricing is a member of the Reed Elsevier plc group.
FORWARD TRADING (SPOT ASSESSED BUY/SELL PRICE RANGES AND SPREADS)
Spreads = Positive numbers favour inner months, negative numbers outer months. All times quoted are local time.
BFOE = Brent/Forties/Oseberg/Ekofisk.
NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.
EXCHANGE SUMMARY
| | Month | High | Low | Open | Wtd. Avg. | Settle | Change |
| ICE | Sep | 113.73 | 107.00 | 113.50 | 110.71 | 107.25 | -5.98 |
| BRENT | Oct | 113.55 | 106.90 | 113.34 | 110.72 | 107.16 | -5.91 |
| | Nov | 113.53 | 107.00 | 113.28 | 110.58 | 107.21 | -5.85 |
| NYMEX | Sep | 92.59 | 86.04 | 91.12 | N/A | 86.63 | -5.30 |
| WTI | Oct | 92.95 | 86.47 | 91.49 | N/A | 87.04 | -5.29 |
| | Nov | 93.27 | 86.94 | 91.95 | N/A | 87.49 | -5.29 |
FUTURES MARKETS
Prices opened the day in moderately positive territory, but lost ground during the early hours before rallying in tandem with firm Asian stock markets. However, once Europe opened for business prices went into steep decline on the back of a firmer US Dollar and ongoing concerns over the state of the US economy, which could cause a drop in energy demand. The markets were already posting 3-digit losses by the time the US markets opened and they fell further when US jobless claims data proved to be inconclusive. A larger-than-expected build on US Natural Gas stocks added further downward impetus. Penetration of key technical barriers then triggered a massive sell-off across the energy complex, while similar length liquidation in the equities markets and a firmer US Dollar added to the downward momentum. Crude prices tumbled dollar after dollar, but a little last minute profit taking hauled them off the lows.
POST EXCHANGE CLOSE TRADING
There was an attempt at bottom picking in the cash market following the weak NYMEX close, with bids for September WTI raising their bids to 86.77 (Print plus 14 cents) but sellers pulled back. During electronic trading, however, the stock market maintained the free-fall and crude prices worked lower. WTI worked down towards 86.24, with the earlier floor low managing to hold. Light buying re-entered the market and the value for the front month rose towards 86.50, still holding below the settlement.
Despite the deeply oversold conditions, the market’s bias remains to the downside and in search of a bottom, although some pre-weekend short covering could be expected.
PHYSICAL MARKETS
ASIA PACIFIC: Traders awaited the release of Indonesia’s spot tender for October arrival sweet crude
ARAB GULF: Qatar issued both spot and term condensate tenders.
NORTH SEA: Forties traded lower again despite further delays to both Forties and Ekofisk loading programmes.
URALS: Firmer bid for Black Sea cargo, no public talk on Baltic cargoes.
WEST AFRICA: Differentials holding firm, results of first Indian purchase tender for October awaited.
AMERICAS: Despite oversold conditions, the market now in search of a bottom.
SUBSCRIBER NOTES
