Supporting the decline in crude inventories, the government department said last week it had seen a large drop in U.S. crude oil imports .
Imports last week averaged about 6.5 million barrels a day, down 658,000 barrels a day on the previous week, according to EIA data. Over the past four weeks, crude oil imports into the U.S. averaged 7 million barrels per day, 11.3 percent below the same four-week period last year, the energy body said.
West Texas Intermediate (WTI), the U.S. crude benchmark, for July delivery on Nymex finished at $104.07 a barrel on May 21, $1.84 up on the day and a $2.48 gain on where it closed last week.
Brent crude futures also continued to move higher, supported by the escalating conflict in Libya and fears the country is descending into civil war. The escalating political and civil instability has raised questions about Libya’s ability to export oil. Oil exports have fallen from some 1.4 million barrels a day in July 2013 to around 230,000 barrels a day in March, according to Bloomberg.
Oil shipments from Libya had been expected to rise after rebels surrendered control of the eastern ports of Hariga and Zueitina to the government in April following an eight-month blockade. A deal had also been under negotiation for the remaining two terminals of Ras Lanuf and Es Sider held by the rebel forces. Analysts now believe Libya will struggle to raise export volumes given the worsening situation there.
Brent for July delivery on London-based ICE Futures Europe climbed above $110 on May 21 to settle at $110.55 a barrel. This represented a 3.3 percent gain over the past fortnight.
Arabica coffee hits six-week low
Among soft commodities, arabica coffee futures extended recent losses, touching a six-week low on May 21 as the markets waits for a clearer picture to emerge on the extent of crop damage due to drought in top producer and exporter Brazil.
There is talk that the extent of the losses to the country’s 2014-2015 (April 1-March 31) crop may not be as extreme as initially feared after key coffee-growing areas in the southern states of Minas Gerais and São Paulo suffered record hot, dry weather conditions in January and February.
Arabica coffee for September delivery on New York’s ICE Futures U.S. exchange slipped to a six-week low of $1.809 a pound on May 21. The front-month contract July, meanwhile, has lost around 18 percent of its value since reaching a 26-month peak of $2.1892 a pound on April 23.
ICE raw sugar futures were trading lower again after rallying back above 18 cents a pound last week after Brazil’s sugarcane industry association, Unica, reported production of the sweetener fell 13.3 percent in the 2014-2015 sugar year to date (to April 30) in the Center-South region, the country’s main cane-growing area.
But futures prices came under renewed pressure this week on weak physical demand for the sweetener with the July raw sugar contract on ICE Futures U.S. settling at 17.46 a pound on May 21, down 0.41 cents on last week’s finish at 17.87 cents.
White, or refined, sugar was also lower, with August white sugar settling at $473.30 a tonne on London’s NYSE Liffe on May 21, down $15.05 on last week’s close at $488.35.
Cocoa futures continued to recover from the three-month lows touched earlier this month. At midweek, July cocoa on ICE Futures U.S. hit a three-week high of $2,996 a tonne before finishing at $2,012. The July contract had slipped to $2,849 a tonne on May 8, the lowest for the second-position contract since late January, amid an improving supply outlook in West Africa, particularly for top grower Cộte d’Ivoire.
Meanwhile, July cocoa on NYSE Liffe edged up to reach a one-month high of £1,875 a tonne.
While care has been taken to ensure that the information contained in this report is accurate, it is supplied without guarantee. The author can accept no responsibility for any errors or any consequence arising from the information provided.
