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Money Managers Stay Bullish in Biofuels Futures, Options Markets, CFTC Says

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Money managers hold on to net long positions in the soybean oil futures and options markets, D4 and D6 Renewable Identification Numbers, and ethanol futures and options markets, according to the Commodity Futures Trading Commission's weekly Commitments of Traders Report released Friday.

The weekly COT Report, as of the week ending July 7, showed that money managers are net long, a bet that the market will go higher, in the California Low Carbon Fuel Standard market by 60,391 contracts, while producers/merchants/processors/users or physical market participants are net short by 78,236 contracts.

The COT report showed that money managers are net long by 1,211 contracts in the D6 RINs Current Year futures and options markets. Industry participants are net long by 349 contracts.

In the D4 Biodiesel RINs Current Year futures and options markets, money managers hold a net long position of 1,508, while physical market participants are net short by 2,247 contracts.

For ethanol, money managers are net long by 4,745 contracts, while industry participants are net short by 4,771 contracts.

Money managers are net long soybean oil futures and options by 89,228 contracts, while commercial market participants are net short by 172,767 contracts.

Money managers are net short Malaysian palm oil futures by 3,824 contracts, while industry participants are net long by 8,609 contracts.

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Update: Market Chatter: Petrobras Eyes Bolivia Upstream Return, YPFB Partnership

(Updates with Bolivia's Ministry of Hydrocarbons and Energy response in paragraphs 4-5.)Petrobras (PBR) and Bolivia will start technical discussions next week as the Brazilian state oil firm weighs re-entering the country's upstream sector, with the talks also expected to cover cooperation with state energy company YPFB, Reuters reported Thursday, citing Energy Minister Marcelo Blanco.Energy Minister Marcelo Blanco said Petrobras is willing to help restructure YPFB. He added the talks will assess the company's role in Bolivia's energy sector, but gave no investment details or timeline.Bolivia expects updated oil and gas reserve estimates by the end of last year next week after an independent firm completes its assessment, YPFB President Sebastian Daroca said.Bolivia's Ministry of Hydrocarbons and Energy toldin an emailed response that Petrobras and Bolivian authorities agreed during a Wednesday meeting to establish technical roundtables to further discuss issues of mutual interest and evaluate opportunities for cooperation.Petrobras recognizes the importance of strengthening institutional dialogue with Bolivia and jointly developing a technical agenda, the ministry added.Petrobras and YPFB did not immediately reply to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$PBR
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US Natural Gas Update: Futures Fall Over 6% After Storage Build, Freeport LNG Maintenance

US natural gas futures tumbled in after-hours trading on Thursday, following government data showing a larger-than-expected increase in storage and as maintenance at the Freeport LNG export terminal was set to begin, pointing to weaker near-term demand.The front-month Henry Hub contract and the continuous contract both fell 6.23% to $3.012 per million British thermal units.The US Energy Information Administration said working gas in storage increased by 61 billion cubic feet during the week ended July 3, exceeding analysts' expectations for a build of between 51 Bcf and 57 Bcf. The injection also surpassed the five-year average increase of 51 Bcf for the period.Total gas inventories rose to 2,983 Bcf, the EIA said. While stocks remained 15 Bcf below year-earlier levels, the surplus to the five-year average widened to 185 Bcf from 175 Bcf the previous week.The larger-than-expected storage injection reinforced expectations of a looser supply-demand balance, weighing on prices.Additional pressure came from the start of a planned maintenance turnaround at the Freeport LNG export facility on the US Gulf Coast, scheduled for Friday, Reuters reported.The work, which is expected to continue through the end of next month, will reduce feedgas demand by keeping gas that would otherwise be liquefied for export in the domestic market.Weather forecasts also added to the bearish sentiment. Pinebrook Energy Advisors said the latest midday run of the Global Forecast System Ensemble model showed lower cooling demand next week, implying weaker natural gas consumption from power generators.Barchart, citing BNEF data, said US dry gas production rose to 113.5 Bcf per day on Thursday, up 1.9 Bcf/d from Wednesday and 6.8% higher than the same day a year earlier.Lower-48 gas demand also increased by 1.9 Bcf/d day over day to 78.1 Bcf/d, edging up 0.1% from a year ago. According to Celsius Energy, power sector gas consumption, or Powerburn, totaled 43.8 Bcf on July 7, up 0.3 Bcf from the previous day but 4.4 Bcf below the year-earlier level.Over the past seven days, Powerburn averaged 42.5 Bcf/d, down 1.1 Bcf/d from the corresponding period last year, it said.

Commodities

Market Chatter: Petrobras Eyes Bolivia Upstream Return, YPFB Partnership

Petrobras (PBR) and Bolivia will start technical discussions next week as the Brazilian oil company weighs re-entering the country's upstream sector, with the talks also expected to cover cooperation with state energy company YPFB, Reuters reported Thursday, citing Energy Minister Marcelo Blanco.Energy Minister Marcelo Blanco said Petrobras is willing to help restructure YPFB. He added the talks will assess the company's role in Bolivia's energy sector, but gave no investment details or timeline.Bolivia expects updated oil and gas reserve estimates by the end of last year next week after an independent firm completes its assessment, YPFB President Sebastian Daroca said.Bolivia's Ministry of Hydrocarbons and Energy, Petrobras, and YPFB did not immediately reply to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$PBR