By Nirmal Bang

MARKET ROUNDUP:

U.S. crude oil futures ended lower on Thursday, snapping a three-day rally, on worries about weak oil demand as the economic outlook remained cautious despite a decline in new claims for jobless benefits. NYMEX natural gas futures, backed by a neutral weekly inventory report, ended higher, but soft cash prices, fairly mild U.S. weather forecasts and a still-struggling economy continued to limit the upside.

IN FOCUS:

- Major oil exporters in Latin America and the Middle East have expressed "strong interest" in switching the basis of their oil prices to Argus's U.S. Sour Crude Index following Saudi Arabia's adoption of the index, an Argus executive said on Thursday.

- Mexico's Coatzacoalcos oil terminal, closed due to bad weather since Tuesday afternoon, reopened on Thursday morning, while the nearby Dos Bocas oil port remained closed due to high waves, the government said.

- Nigeria will export an average of 1.97 million barrels per day (bpd) of crude oil in December, up from a revised 1.92 million bpd in November and the highest volume since July, trade sources said on Thursday.

- Brazil's Petrobras has found natural gas in Peru's Amazon jungle and the discovery of about 1 trillion cubic feet could turn out to be much larger, Peruvian President Alan Garcia said on Thursday.

FUNDAMENTAL OUTLOOK:

Crude oil may trade sideways to down early in the session. However, it is likely to take direction from the movement in equities and the dollar later in the day. We expect crude oil to witness some upside in the second half of the session.