November 30, 2015 [OPIS] - U.S. traders were largely absent from petroleum marketers Friday, but global players clearly are spooked by supply and demand patterns, as well as a U.S.
Dollar that is on the cusp of breaking out to new five year highs. Crude oil and diesel took their licks in international markets, and only the prompt NYMEX gasoline contract remained reasonably stable.
January WTI settled at $41.71 bbl, down $1.27 bbl from the Wednesday settlement and not far off of the 48 hour lows. The weak NYMEX puts many Gulf of Mexico medium and sour blends of crude back into the $30’s.
Brent spent most of the afternoon trading for less than $45 bbl, with a final close of $44.86 bbl. OPEC will meet next week in Vienna, but they will do so against the background of a very sloppy North Atlantic market as well as aggressive efforts by cartel and non-OPEC members to grab market share in Asia.
Diesel was the biggest loser, and one still has trouble coming up with a catalyst until weather descends on areas that use distillate as a heating fuel. December ULSD will expire on Monday, and that contract lost 4.47cts gal today and settled at $1.3524 gal. The January contract, which provides the reference for most spot markets, fell 4.37cts gal to $1.3781 gal. Given the scope of the market’s 15 month decline, these are large losses, with most markets falling more than 3 percent.
December RBOB was very lightly traded, but last quotes were at $1.3905 gal, up 0.09cts gal on the day. The January RBOB market takes over as the front month after Monday’s expiry, and it lost 1.38cts gal and finished at $1.3367 gal.
While pre-OPEC meeting rhetoric may dominate headlines next week, many traders are also keeping a sharp eye on the U.S. Dollar. The DXY, which tracks the Greenback versus a basket of currencies, was last quoted at 100.08, reflecting a rise of 0.22%. It is within a tiny fraction of both its 2015 and five year highs, and further strength could pressure the entire commodity complex lower.
