Cantor Morning News | Energy/Shipping

Crude oil surged, posting its best weekly gain since July 23, after Federal Reservee Chairman Ben Bernanke pledged to safeguard the economic recovery. Oil rose the most since Aug 2 as the Standard and Poor's 500 Index jumped 1.7 percent. The Commerce Dept reported the U.S. economy grew faster pace than forcast in the second quarter.

Crude oil for October delivery rose $1.81, or 2.5% to settle at $75.17 a barrel. Futures gained 2.3% this week. Prices have fallen 4.8 percent in August, the first decline since May, and risen 3.7 percent in the past year.

Natural gas futures may rise this week on speculation that hotter-than-normal weather will boost demand for power-plant fuel. The recent decline in prices has been at odds with the natural gas storage data. A narrowing surplus is a trend that normally correlates with an intermediate-term rally in natural gas prices.

Flow was light ahead of the weekend. We saw customer sell orders outnumber buy orders 2 to one. The sales all looked to be long sales pairing back on postions.

Macro/Technicals

XLE : 52.1; +2.6%
UTY: 416.27; 1.89%
OIH: 100.21; +3.47%
TAN: 7.29; +3.99%
AMJ: 32.22; +.91%
BIDY: 724; -.82%
BDIY: 2712; +.33%
SEA: 26.08; +2.23%

Sector News, M&A, Capital Raises

Marine Transportation: The Ship's Log - Weekly Global Shipping Industry Update

Dry Bulk: Handymax, and to a lesser extent, Panamax vessels, have traded relatively well in anticipation of the upcoming strong grain season in the Atlantic. Capesize earnings underwent a correction last week after the recent rebound.
Oil Tankers: Crude tanker rates fell sharply across all vessel classes as a persistent amount of oversupply is taking its toll on the market, we suggest.

For the full pdf report, click the below link.
https://cantor.bluematrix.com/docs/pdf/f193f6b0-ac57-4676-a4ef-c24877f1f292.pdf

Risk-Taking Rises as Oil Rigs in Gulf Drill Deeper

http://www.nytimes.com/2010/08/30/business/energy-environment/30deep.html?ref=business&pagewanted=all

Gas Prices Down More Than 7 Cents in Two Weeks – CNBC link

SLB Schlumberger completes merger with Smith International (SII) ($55.76)
As previously disclosed, Schlumberger has issued approximately 176M shares pursuant to the merger, representing a transaction value of approximately $11B. As a result, former Smith stockholders own approximately 12.9% of Schlumberger's outstanding shares of common stock

Research Away

BMO Capital

NBL ($67.24) Noble Energy upgraded to outperform from market perform at BMO Capital Target increased to $85 from $78.

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