Commodities » Energy

Oil and natural gas daily review (February 25, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude Oil prices rose $80 a barrel on Wednesday on NYMEX as comments from U.S. Federal Reserve Chairman Ben Bernanke reaffirming his commitment to keeping interest rates low outweighed a report showing a build in U.S. crude stockpiles.

IN FOCUS

- A week-long refinery strike that threatened fuel supply in France and drew in President Nicolas Sarkozy has ended, Total said on Wednesday.

- A rise in imports pushed U.S. crude oil stockpiles up above expectations last week while the nation's distillate inventories fell less than forecast amid lackluster demand, U.S. Energy Information Administration data showed on Wednesday.

- India's annual local fuel sales declined 1.6 percent in January, the first fall since May, but crude processing by refiners rose 3.8 percent from a low base last year when weakening global demand curbed output.

- Britain's biggest oilfield, Nexen Inc, said in a statement it resumed pumping at the normal rate of between 200,000 and 220,000 barrels per day (bpd) after maintenance issues cut output for more than a week.

- Exports of Nigeria's benchmark Qua Iboe crude oil will average around 393,000 barrels per day (bpd) in April, one of the highest daily rates for two years, trade sources said on Wednesday.

- Chile's Mejillones liquified natural gas terminal plans to start commercial operations in May to help supply energy to key mines, the head of the controlling energy company said on Wednesday.

FUNDAMENTAL OUTLOOK

We expect crude oil prices to trade weak today. A stronger dollar outlook and a surprise builtin crude oil inventories will pressurize the prices of crude oil.