Ransquawk Energy Markets Commentary - Nov. 22, 2007

Discussion in 'Energy Futures' started by Ransquawk, Nov 22, 2007.

  1. Ransquawk

    Ransquawk ET Sponsor

    Energy futures are trading higher today in thin trading as the U.S. markets closed today for the Thanksgiving Day holiday. Yesterday energy futures finished mostly lower after the EIA reported that crude inventories fell unexpectedly by 1.1M barrels, gasoline inventories increased less than expected by 200K barrels and distillate inventories decreased more than expected by 2.4M barrels. Crude inventories at Cushing, the delivery point for WTI, rose 1.2M barrels. Crude inventories are now in the upper half of the average range, gasoline inventories are below the lower end of the average range and distillate inventories are in the middle of the average range.

    The head of the International Atomic Energy Agency, El Baradei, will address the Agency’s Board of Governors today to discuss whether Iran’s compliance on its nuclear program is going according to plan. Reuters reported, citing an unnamed U.N. official, that El-Baradei is likely to say that the plan is proceeding according to schedule and the timeline to resolve outstanding questions by around the end of the year. Iran’s new nuclear negotiator, Jalili, warned today that “playing with security of Iran is like dominos”, suggesting that any threat against his country would have repercussions on the stability of the entire region. A short while ago Iran’s envoy to the IAEA accused the U.S. of poisoning diplomacy over Iran’s nuclear work, adding that U.N. sanctions are not having an affect.

    In its “This Week In Petroleum” piece yesterday, the EIA wrote that although crude oil prices have been highly volatile so far this week, a significant decline in gasoline prices before Christmas appears unlikely.

    On the weather front, Accuweather wrote today that the eastern section of the nation enjoyed a brief warming of temperatures ahead of a low pressure system. This storm system is expected to move through today and bring chilly temperatures and snow to portions of the east.

    At 11:30 a.m. BST WTI crude futures are up $0.11 at $97.40, RBOB gasoline futures are up 0.29 cents to 244.00 and heating oil futures are climbing 0.94 cents to 269.68. Natural gas futures are up 2.1 cents to $7.57.

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