Energy commodities: 11/01/2010

Unless stated otherwise, all prices are for the close of January 8

Brent crude oil futures: US$82.13bbl, up 0.9 per cent, as of GMT 08:45, January 11
WTI crude oil futures: US$83.56, up 0.8 per cent, as of GMT 08:45, January 11
German power: €51.91/MWh, down 0.56 per cent
Coal: €103.25/t, down 1.53 per cent
Natural Gas: GB 35.40p/therm, down 3.01 per cent
EUAs for December 10 delivery: €13.00/t, up 2.12 per cent
CERs for December 10 delivery: €11.34/t, up 2.07 per cent

Latest Buzz
Oil has risen to a 15-month high on expectations that the global economic recovery will continue, without being derailed by the persistently low temperatures seen across the Northern Hemisphere. Traders were also encouraged by a government report, which has showed that Chinese crude imports hit a record 203.8Mt in 2009. The continuing slide of the US Dollar against the Euro has also put upward pressure on energy commodity prices. Since January 8, it has slipped to US$1.45333/€. The only real source of bearish sentiment appears to be a report that the US employment shrank by 85,000 jobs in December.

Meanwhile US distillate inventories have dropped for a fourth consecutive week, to 159mbbl, despite increases in both refinery runs and imports. Strengthening market sentiment further was the news that the holiday season and the resulting heavy retail discounts, prompted a 0.5 per cent increase in US retail spending in December. The picture has been further compounded by news of a fire at Korea National Oil Corp’s Newfoundland refinery in Canada. Another incident helping to push up prices, is an attack on a Chevron owned pipeline in Nigeria, which has forced the company to shut in 20,000bpd of crude output.

Over in Europe, the continued cold weather has strengthened bullish sentiment among carbon traders, despite an apparent lack of support from the rest of the energy complex. In the absence of EUA or CER specific news, both markets essentially moved in lock-step.