Global Macro Perspectives
*** The Big Picture on overbought market *** The Big Picture on Google Maps Foreclosure Features *** Calculated Risk on rising mortgage rates *** FT Alpahville on Italian banks’ subordinated debt *** FT Alpahville on U.S. treasuries sell-off *** Reuters on Orszag’s new job ***
Working gas in storage fell 89 Bcf from previous week. The consensus was at 80 Bcf.
I expect further increases in storage draws in following weeks.
Initial jobless claims in the U.S. were reported at 421.000. The consensus was at 425.000, last week revised (up 2.000) reading was at 438.000.
Econbrowser on impact of rising crude oil prices * FT Alphaville on U.S. treasury bonds * The Big Picture on consumer deleveraging * Calculated Risk on office vacancy rates
rude oil stocks fell 3.8 million barrels; Gasoline stocks were up 3.8 million barrels; Distillate stocks rose 2.2 million barrels; Propane/propylene stocks fell 2.3 million barrels; Other oils stocks decreased 4.5 million barrels; Total crude oil and petroleum stocks fell 5.3 million barrels for the week.
Refinery utilization rose 4.9% to 87.5%.
Implied crude oil demand rose 1.3 million barrels.
Crude oil and petroleum product net imports rose 1.1 million barrels to 9.6 million barrels.
Kind of mixed report, large temperature related draws, on the other hand large stockpiling of gasoline and distillates. Imports increased and refinery utilization increased, so the risk is on the side of further stock increases.
Most important we had large moves in the futures curve; the curve flattened and prices in the mid of the two year curve rose higher than the prices on the end of the curve. This could be big thing and a potential prelude to the curve move into backwardation.