Thursday, June 5, 2014

WTI Slipping

“The news that a port in Libya is about to reopen, along with the increase in Middle Eastern production, is putting Brent under pressure,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The fundamentals don’t support these prices so we should see them continue to move lower. WTI should soon test $100.”
Russian crude and condensate output climbed to 10.53 million barrels a day in May, up 0.6 percent from a year earlier, according to data e-mailed from the Energy Ministry. Condensate is a high-value, light petroleum liquid commonly found in association with natural gas.
China’s PMI (CPMINDX) increased to 50.8 in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing in Beijing reported yesterday. The PMI is the highest since December and surpasses the median estimate of 50.7 in a Bloomberg News survey of economists. April’s level was 50.4, with readings above 50 indicating expansion.
The nation will account for about 11 percent of global oil demand this year, compared with 21 percent for the U.S., forecasts from the International Energy Agency in Paris show.

Culled from bloomberg.com

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