Posts Tagged ‘Weekly’

PIRA Energy Group’s Weekly Natural Gas, Power and Coal Market Recap for the Week Ending April 13th, 2014











PIRA Energy Group


New York, NY (PRWEB) April 16, 2014

NYC-based PIRA Energy Group reports that Russian supply cutoff via Ukraine is unlikely to happen. While In the U.S., the first EIA report of the injection season revealed a paltry 4 BCF build. Specifically, PIRA’s analysis of natural gas market fundamentals has revealed the following:

Russian Supply Cutoff via Ukraine Unlikely To Happen

The longer term implications of a Russian supply cutoff via Ukraine are so significant that PIRA still believes that it is unlikely to happen, even if now would be the ideal time – low seasonal gas demand and limited risk to Western Europe – to trigger it. If Russia’s mega-investment in pipeline gas to Asia were already built, that would be one thing, but the broader plans for such a grid outlined in this week’s Gazprom Investment Day presentation do not envision such a system until late 2019 at the earliest. The longstanding marriage between European gas demand and Russian gas export revenues is very much alive and well, and with it, a marital compromise will have to be reached with regard to how Ukraine’s debts will be paid in the future.

Paltry Stock Build

The first EIA report of the injection season revealed a paltry 4 BCF build, splitting the uprights between the five-year average 9 BCF build and the year-ago 25 BCF draw. Nevertheless, the indicated figure was well below consensus estimates that called for a build some 10 BCF higher, and was even below the low end of the market’s range. With the report’s lowball number unmasking inherently more bullish underlying fundamentals, the NYMEX prompt contract rallied ~15¢ on the news, erasing early-session losses on its way to an overall day-on-day gain of ~7¢ by settlement.

Jump in Price Volatility Is Emerging in Three Major Markets

In the three major regional gas markets around the world, a noticeable jump in price volatility is emerging after several years of near dormancy. In North America, higher prices are being driven by low storage coming out of winter and in Europe, lower prices are being driven by high storage coming out of winter. In Asia, second quarter spot prices have dropped roughly 20% over the past 90 days and it is all too clear that buyers of choice have replaced buyers of necessity during the seasonal dip in Asian gas demand.

NYC-based PIRA Energy Group reports that coal pricing is benefiting from strength in natural gas markets. While in the Europe, discussions on pricing of French nuclear power appears stalled. Specifically, PIRA’s analysis of electricity and coal market fundamentals has revealed the following:

Coal Pricing Benefiting from Strength in Natural Gas Markets

Seaborne coal prices moved higher across the board last week, although weaker dry bulk freight rates gave more upside momentum to FOB pricing points than CIF ones. The threat of Russia cutting off gas to and through Ukraine grabbed headlines last week, sending NBP gas prices higher. The oil market also ticked up last week, and coal pricing followed suit. Coal specific fundamentals remain weak overall, with robust supply and sluggish demand growth.

The Costs of the French Nuclear Power Being Discussed

The discussion around the price of the ARENH (Regulated access to historical nuclear electricity) appears to have stalled. Set to be released by the end of March 2014, the decree updating the price of EDF’s nuclear power allocated to its competitors appears to be slated to be published only during the summer, leaving a big regulatory vacuum for large volumes of electricity at a time when the French electricity supply/demand balances are looking considerably bearish.

The information above is part of PIRA Energy Group’s weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Click here for additional information on PIRA’s global energy commodity market research services.

PIRA Energy Group

3 Park Avenue, 26th Floor

New York, NY 10016

212-686-6808

sales(at)pira(dot)com

Follow us on LinkedIn& Twitter

How will crude oil trade flows evolve? What will determine the volume of U.S. product exports?

Click to view PIRA’s new multi client study: Shale Crude’s Growing Global Impact: Consequences for Trade Flows and Pricing Within and Beyond North America’s Borders
































Vocus©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.









More Commodities Press Releases

PIRA Energy Group’s Weekly Oil Market Recap for the Week Ending April 13th, 2014











PIRA Energy Group


New York, NY (PRWEB) April 15, 2014

NYC-based PIRA Energy Group believes that Asian oil markets remain supported. In the U.S., stocks built. In Japan, consumption tax increase depresses product demands. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Asian Oil Markets Remain Supported

Oil prices should find increasing support moving forward as the worst of the spring crude stock building is almost behind us. Asian gasoline cracks should improve seasonally. Gasoil cracks should hold up with ongoing turnarounds and then higher demand, especially into 3Q.

Consumption Tax Increase Depresses Japanese Product Demands

Total commercial stocks rose 4.6 MMBbls due to a 4.9 MMBbl build in crude. Finished product stocks were modestly lower. Gasoil stocks drew for the eleventh straight week. All the major product demands fell back, as an increase in the consumption tax went into effect April 1st. That increase is likely to keep demands abnormally soft for the next couple of weeks and produce adverse demand comparisons to last April.

A Closer Look at Canadian Shale Liquids Potential

It is becoming increasingly likely that the next location of significant shale liquids growth will be Western Canada. A closer look at resource potential suggests that production volumes will substantially grow. There will be obstacles including cost pressures, water management, takeaway infrastructure limits and environmental concerns that will slow progress but none of these appear to be showstoppers.

Propane Stock Building Has Commenced

U.S. stock building occurred at a faster pace than last season, but propane inventory comparisons will remain far lower year-on-year. Propane exports will grow during the course of the year as new terminal capacity is added. Near term ethane usage is affected by a relatively high level of cracker downtime. The key development is the sharp escalation in spot international freight costs which is adversely impacting trade economics.

Ethanol Prices Plummet

U.S. ethanol prices tumbled the week ending April 4 as plant output increased sharply, enabling stocks to build for the second consecutive week. At the same time, prices had reached a high enough premium over gasoline that companies reduced the percentage of ethanol-blended fuel to the lowest level in about eight weeks.

The information above is part of PIRA Energy Group’s weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Click here for additional information on PIRA’s global energy commodity market research services.

PIRA Energy Group

3 Park Avenue, 26th Floor

New York, NY 10016

212-686-6808

sales(at)pira(dot)com

PIRA’s new multi client study: Shale Crude’s Growing Global Impact: Consequences for Trade Flows and Pricing Within and Beyond North America’s Borders
































Vocus©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.









Find More Commodities Press Releases

PIRA Energy Group’s Weekly Oil Market Recap for the Week Ending January 26th, 2014











PIRA Energy Group


New York, NY (PRWEB) January 28, 2014

NYC-based PIRA Energy Group reports that Brent crude prices have stayed strong this month. On the week, U.S. products draw while crude stocks build, while in Japan crude stocks jumped. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Brent Prices Strong This Month

Brent crude prices have stayed strong this month supported by relatively tight global supply-demand balances and low inventories but will trend lower later this quarter as refinery maintenance cuts crude demand, crude supply continues its unrelenting growth in the United States, and supply disruptions elsewhere directionally ease.

U.S. Products Draw While Crude Stocks Build

Surprisingly low crude runs were largely responsible for the first crude inventory increase in eight weeks. They also contributed to a larger product stock draw versus the week earlier. A reported demand increase and increased product imports were also factors in the week-on-week product stock change. This past week’s overall inventory change was 1.3 million barrels larger than the inventory decline for the same week last year, thereby widening the year-on-year stock deficit. U.S. commercial oil inventories are declining significantly this January and this has happened just once in the last ten years.

Another Jump In Japanese Crude Stocks

Another relatively high crude import rate produced a crude stock build on slightly lower runs. Modestly higher stock builds were registered on all the major products (mogas, gasoil, naphtha, jet, and fuel oil), though kerosene stocks drew seasonally. Margins were slightly softer with weaker light product cracks overshadowing higher fuel oil cracks.

U.S. Propane Is Continuing To Exert Price Leadership

U.S. Propane is continuing to exert price leadership although developments in the mid-continent are certainly in a state of disequilibrium given high demand for tight supplies. The wide gap to the Gulf Coast is certainly encouraging flows north with the price level leading to demand destruction.

Ethanol Prices and Margins Decline

U.S. ethanol prices resumed their downward trend the week ending January 17 as improving weather in the Midwest led to higher operating rates and reduced transportation problems. Manufacturing cash margins fell as a result of the decrease in ethanol and co-product values.

China Quarterly Oil Demand Monitor

China’s apparent oil demand disappointed in 2013, as growth slowed meaningfully from 2012. Reasons for the slowing were not immediately apparent. The pace of GDP growth did not change between the two years, and physical indicators that can directly be tied to oil demand (such as vehicle sales, ethylene production, and air travel) recorded healthy increases last year. Looking to 2014, the key story for China is an ongoing push for structural reform.

The information above is part of PIRA Energy Group’s weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Click here for additional information on PIRA’s global energy commodity market research services.

PIRA Energy Group

3 Park Avenue, 26th Floor

New York, NY 10016

212-686-6808

sales(at)pira(dot)com




























Vocus©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.









In his weekly message, taped at YoYo Joe’s in Wilmington, the Governor talks about the opening of three new small business “pop-ups.” “These entrepreneurs will have the chance to test their start-up for three months, with an eye toward establishing longer term success,” said Governor Markell. “When these small businesses draw customers, it’s a win for the business, for the people who patronize them and for the properties that might otherwise go vacant. Helping to start, sustain, and strengthen them is one way we keep our communities, our state and our great nation alive and moving forward.” On the web: www.governor.delaware.gov Facebook www.facebook.com @GovernorMarkell: www.twitter.com Gov. Markell’s podcasts available on iTunes or governor.delaware.gov

7 Reasons to Shop on Small Business Saturday
Video Rating: 5 / 5