Commodities » Energy

Oil and natural gas daily review (November 5, 2009)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP:

U.S. crude oil futures ended up on Wednesday, though well below the day's highs, buoyed by an optimistic economic outlook from the Federal Reserve and a surprise weekly drawdown in crude inventories. U.S. natural gas futures ended lower on Wednesday, amid concerns over record high inventories, the struggling economy and forecasts for fairly mild, above-normal temperatures in the coming days.

IN FOCUS:

- The International Energy Agency will "substantially" lower its long-term oil demand forecast in its annual energy outlook, the Wall Street Journal reported.

- Qatar has raised its October retroactive official selling price (OSP) for Qatar Marine crude to $72.85 a barrel, up $4.88 from September, a trader said on Thursday.

- Temperatures in key gas consuming cities New York and Chicago were seen a mix of above and below normal for the next six days, with highs mostly in the 50s Fahrenheit in New York and climbing to the low-60s in Chicago, and lows briefly dipping into the 30s F in both cities, according to forecaster DTN Meteorlogix.

- The latest National Weather Service six to 10-day outlook issued Tuesday, however, called for above-normal readings for about the eastern half of the nation, with near-normal or below-normal readings in the West.

FUNDAMENTAL OUTLOOK:

Energy complex looks to be topped out. We recommend selling crude oil on rise during the day.We expect prices to remain under pressure.