Commodities » Energy

Oil and natural gas daily review (February 22, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude oil futures settled nearly 1 percent higher on Friday as a French refinery strike that lifted gasoline futures and geopolitical tensions about Iran's nuclear program combined to overcome concerns about the Federal Reserve's action raising its discount rate

IN FOCUS

- Oil is likely to hold in its current price range during 2010, although some upwards movement could be possible, oil major BP's Chief Economist said.

- CHINA COMMERCIAL CRUDE OIL STOCKS STOOD AT 26.80 MLN T. CHINA END-JAN COMMERCIAL GASOLINE STOCKS AT 6.63 MLN T, DIESEL 9.53 MLN T, KERO 1.62 MLN T -XINHUA

- The spread between the current front month and the five-year forward crude contract was at $12.87, widening from $12.44 on Thursday. The March 2015 contract settled on Friday at $87, down 72 cents, or 0.82 percent.

- The average price of a gallon of gasoline in the United States fell over the last two weeks, even as crude oil prices climbed, an industry analyst said on Sunday.

- Middle East heavy sour crude grades were sold at lower levels than a month earlier, reflecting general weakness across regional markets as fuel oil cracks slid to their widest since early January, traders said on Friday.

- A spot cargo of April-loading Abu Dhabi Murban crude was sold to a Japanese refiner late last week, and at least one more Murban cargo was believed to have been sold to an Indian firm, but prices of the deal were unknown, one trader said.

FUNDAMENTAL OUTLOOK

Crude oil futures shot up to more than $80 a barrel in post-settlement trading on Friday, fiveweek high, as geopolitical worries about Iran's nuclear program and strikes at French refineries, buying at dips is recommended during the day.