Yesterday we discussed the small increases seen by the Consumer Price Index (CPI). Prices in March grew by just 0.1%, leading to a cumulative gain of 0.7% since the start of the year. Did consumers, who saw income increase by 0.09% over the same period, respond to increased purchasing power by spending more?
Energy prices were weak yesterday. Turns out that a giant cloud of volcanic ash can put quite the damper on jet fuel demand. On the other side of the Atlantic, the Star Quarterback for Team Bulls has been hit hard. Meanwhile, natural gas was weak and dropped below 4.000; thus it seems having an enormous supply glut doesn’t help prices much either. Who knew?
By now our readers have likely heard about and discussed the SEC’s lawsuit against Goldman Sachs for fraud. The details are across the Internet, but what effect will the allegations have on the energy complex?
Energy prices were mixed yesterday. Nymex natural gas sold off hard after the EIA reported a seasonally (and absolutely) huge injection. On the other hand, a spate of economic headlines did little to incite action in the liquids markets — crude oil and gasoline fell while heating oil marched higher. As for today, expect little volatility as traders anticipate the evening’s CFTC release.
Yesterday (Tuesday), the IEA upped its supply outlook for non-OPEC producers an extra 220 Mbbl/d from last month’s estimate. Led by Soviet-era (or as Putin calls it, "the good old days") production levels from Russia, as well as increased output from Canada and the UK, non-OPEC production is expected to average 52 MMbbl/d this year.
Last week the DOE released its petroleum supply monthly report, a lagging—yet highly detailed- breakdown of America’s supply disposition. Thus, the report only covers data up to January 2010, but provides a closer look at our trading partners.
In their weekly update yesterday, the EIA referenced the U.S. Department of Energy’s Office of Fossil Energy confirmation that gas hydrate occurs in high saturations within reservoir quality sands in the Gulf of Mexico. The DOE’s findings are the initial result of an expedition that the National Energy Technology Laboratory conducted in May 2009.