Commodities » Energy

Oil and natural gas daily review (November 9, 2009)

Contributed by Nirmal Bang

MARKET ROUNDUP:

U.S. crude futures settled about 3 percent lower on Friday after government data showed that the unemployment rate in US is at its highest in 26-1/2 years spurring further worries about petroleum demand. U.S. natural gas futures ended lower Friday, pressured along with cash gas by milder weather forecast for the coming days.

IN FOCUS:

- Money managers cut their net long crude oil positions on the New York Mercantile Exchange in the week to Nov. 3, the Commodity Futures Trading Commission said in a report on Friday. Net long crude futures positions held by the key speculator group fell to a net long 155,661 positions in the week, down from 157,563 in the week to Oct. 27.

- Ida, which weakened to a tropical depression near the Honduras-Nicaragua border Friday morning, could break into the Northwest Caribbean on Saturday and reach the Gulf of Mexico early Monday, the National Hurricane Center said.

- U.S. wholesalers continued liquidating their inventories in September, with stocks falling for the 13th consecutive month and sales increasing for the fifth straight month, Commerce Department Data showed on Friday.

- U.S. oil producers and refiners said operations were normal in and around the Gulf of Mexico early Friday as they monitored weather systems that could threaten offshore platforms and coastal facilities in the next several days.

FUNDAMENTAL OUTLOOK:

Crude oil fell significantly on Friday backed by weak economic data. It is trading higher around $78.5 per barrel on NYMEX today. The news of a tropical disturbance in Gulf of Mexico and weakness in the dollar may provide some support to crude oil. Natural gas may trade lower during the day.