momengineer
Senior Member
Whenever Brent gets over $100/barrel...it has an impact. Suez canal is a major shipping port for ME oil, unrest in Egypt is not good..
http://www.reuters.com/article/2013/07/05/us-markets-oil-idUSBRE9640FE20130705
Brent rises near $107 on Egypt high alert
By Julia Payne
LONDON | Fri Jul 5, 2013 9:30am EDT
(Reuters) - Brent crude oil rose over $106 a barrel on Friday after Egypt's army said it was on high alert after an attack in Sinai, pushing the price to its biggest weekly gain since last June.
Egyptian troops were "on alert" in the Sinai Peninsula, a military spokesman said on Friday, but he denied a report by the state-owned Al-Ahram newspaper that a state of emergency had been declared in Suez and South Sinai provinces.
So far, ports and shipping through the Suez Canal have been operating normally, two shipping sources and a canal official said.
Strong employment figures from the United States has also underpinned futures but support from the data could be short lived.
"It's both factors really (Egypt and jobs data). If one looks at nonfarm payrolls, it is more likely that the U.S. Federal reserve will implement tapering of quantitative easing, pushing up the dollar," Olivier Jakob at consultancy Petromatrix in Switzerland said.
"If the U.S. economy improves it is good for U.S. oil demand but if the dollar rises because of lower quantitative easing, it will reduce purchasing power for emerging markets, which are driving new oil demand."
Brent crude for August delivery rose 75 cents to $106.29 by 1314 GMT after hitting a high of $107.34 a barrel following the Egyptian army's announcement.
Front-month prices have risen by 4.7 percent so far this week, the largest weekly gain since June last year.
Brent's strength persisted despite the dollar firming to a five-week high versus the Japanese yen following the positive U.S. data.
U.S. crude futures were up 40 cents to $101.64 a barrel after hitting a high of $102.19 a barrel.
The army took control of Egypt on Wednesday after protesters filled the streets of major cities, asking for the resignation of Muslim Brotherhood President Mohamed Mursi.
The Egyptian uncertainty added to existing supply worries. Almost all physical crude grades consumed by Europe are now short including Russian, Iraqi, Libyan and African grades.
North Sea supplies, which underpin Brent, are expected to be extremely low in the coming months when main grade Forties output is reduced due to maintenance in August.
The Forties crude oil stream, the main North Sea grade, will load about 252,000 barrels per day (bpd) in August, down from 387,000 bpd originally planned in July, a trade source said on Friday.
The forward Brent futures spread have widened since earlier in the session due to tighter North Sea supplies, an oil broker in London said.
The August-September spread firmed to 76 cents at 1245 GMT after opening at 64 cents. The curve also flattened with the following month's spread reaching the same level.
Libyan ports and various fields have been plagued by worker protests, and its largest export terminal was shut late on Thursday. Port guards locked the gate over salary complaints, preventing workers from continuing operations.
NONFARM PAYROLLS
U.S. job growth increased more than expected in June, which could draw the Federal Reserve closer to implementing a plan to start scaling back its massive monetary stimulus later this year,, which would sap liquidity and drag on commodity prices.
In the near term the data could be read as a bullish factor, bolstering confidence in demand prospects for the world's largest oil consumer, particularly after the sharp slide in inventories last week. <EIA/S>
Employers added 195,000 new jobs to their payrolls last month, the Labor Department said on Friday, while the unemployment rate held steady at 7.6 percent as more people entered the workforce.
In its weekly energy note, Goldman Sachs said the tightening spread between U.S. and Brent futures was "a reflection of an anticipation of inventory draws in the Midcontinent on the back of increased pipeline and refinery operations".
Elsewhere, seaborne oil exports from OPEC, excluding Angola and Ecuador, will rise by 540,000 barrels per day (bpd) in the four weeks to July 20, an analyst who estimates future shipments said.
(Additional reporting by Florence Tan in Singapore; editing by James Jukwey, Jane Baird and David Evans)
http://www.reuters.com/article/2013/07/05/us-markets-oil-idUSBRE9640FE20130705
Brent rises near $107 on Egypt high alert
By Julia Payne
LONDON | Fri Jul 5, 2013 9:30am EDT
(Reuters) - Brent crude oil rose over $106 a barrel on Friday after Egypt's army said it was on high alert after an attack in Sinai, pushing the price to its biggest weekly gain since last June.
Egyptian troops were "on alert" in the Sinai Peninsula, a military spokesman said on Friday, but he denied a report by the state-owned Al-Ahram newspaper that a state of emergency had been declared in Suez and South Sinai provinces.
So far, ports and shipping through the Suez Canal have been operating normally, two shipping sources and a canal official said.
Strong employment figures from the United States has also underpinned futures but support from the data could be short lived.
"It's both factors really (Egypt and jobs data). If one looks at nonfarm payrolls, it is more likely that the U.S. Federal reserve will implement tapering of quantitative easing, pushing up the dollar," Olivier Jakob at consultancy Petromatrix in Switzerland said.
"If the U.S. economy improves it is good for U.S. oil demand but if the dollar rises because of lower quantitative easing, it will reduce purchasing power for emerging markets, which are driving new oil demand."
Brent crude for August delivery rose 75 cents to $106.29 by 1314 GMT after hitting a high of $107.34 a barrel following the Egyptian army's announcement.
Front-month prices have risen by 4.7 percent so far this week, the largest weekly gain since June last year.
Brent's strength persisted despite the dollar firming to a five-week high versus the Japanese yen following the positive U.S. data.
U.S. crude futures were up 40 cents to $101.64 a barrel after hitting a high of $102.19 a barrel.
The army took control of Egypt on Wednesday after protesters filled the streets of major cities, asking for the resignation of Muslim Brotherhood President Mohamed Mursi.
The Egyptian uncertainty added to existing supply worries. Almost all physical crude grades consumed by Europe are now short including Russian, Iraqi, Libyan and African grades.
North Sea supplies, which underpin Brent, are expected to be extremely low in the coming months when main grade Forties output is reduced due to maintenance in August.
The Forties crude oil stream, the main North Sea grade, will load about 252,000 barrels per day (bpd) in August, down from 387,000 bpd originally planned in July, a trade source said on Friday.
The forward Brent futures spread have widened since earlier in the session due to tighter North Sea supplies, an oil broker in London said.
The August-September spread firmed to 76 cents at 1245 GMT after opening at 64 cents. The curve also flattened with the following month's spread reaching the same level.
Libyan ports and various fields have been plagued by worker protests, and its largest export terminal was shut late on Thursday. Port guards locked the gate over salary complaints, preventing workers from continuing operations.
NONFARM PAYROLLS
U.S. job growth increased more than expected in June, which could draw the Federal Reserve closer to implementing a plan to start scaling back its massive monetary stimulus later this year,, which would sap liquidity and drag on commodity prices.
In the near term the data could be read as a bullish factor, bolstering confidence in demand prospects for the world's largest oil consumer, particularly after the sharp slide in inventories last week. <EIA/S>
Employers added 195,000 new jobs to their payrolls last month, the Labor Department said on Friday, while the unemployment rate held steady at 7.6 percent as more people entered the workforce.
In its weekly energy note, Goldman Sachs said the tightening spread between U.S. and Brent futures was "a reflection of an anticipation of inventory draws in the Midcontinent on the back of increased pipeline and refinery operations".
Elsewhere, seaborne oil exports from OPEC, excluding Angola and Ecuador, will rise by 540,000 barrels per day (bpd) in the four weeks to July 20, an analyst who estimates future shipments said.
(Additional reporting by Florence Tan in Singapore; editing by James Jukwey, Jane Baird and David Evans)