Energy and Natural Resources Market Radar (March 11, 2013)
- The price of natural gas gained nearly 5 percent this week to $3.62 per Mmbtu, its third weekly gain, as late winter storms increased demand for the fuel. Additionally, MDA Weather Service predicted another round of below-normal temperatures for the Eastern region of the country next week.
- The Energy Information Administration (EIA) said U.S. crude oil production reached 7 million barrels per day in February due to increase in the crude production from the Bakken oil field in North Dakota.
- TheFinancial Times notes that China has overtaken the U.S. as the world's largest net importer of oil. U.S. net oil imports dropped to 5.98 million barrels a day in December, the lowest since February 1992, according to figures from the EIA. In the same month, China's net oil imports surged to 6.12 million barrels a day. The U.S. has been the world's largest net importer of oil since the mid-1970s. U.S. domestic oil production is booming on the back of the oil shale revolution, reducing the need for crude oil imports.
- China’s daily crude steel output rose 1.4 percent to 2.03 million tons in late February, the China Iron & Steel Association said.
- According to copper miner Teck Resources Inc., investors continue to underestimate the true copper cost curve. TCK management believes costs are tracking 20 percent above current long term estimates of $2.50 to $2.75 per pound, and once you include sustaining capital of $0.25 per pound, you actually end up with a price closer to $3.50 per pound. As such, TCK expects additional projects to be shelved or curtailed. However copper has the best 10 year supply-demand fundamentals in their commodity universe.
- Rusal PLC , the world's largest aluminum producer, will cut annual output by around 7 percent this year, the company said Monday, paring excess global supply at a time of lackluster demand, depressed prices and rising output in China and the Persian Gulf.