Commodities » Energy

Oil and natural gas daily review (February 26, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude oil futures ended more than 2 percent lower on Thursday, rattled by economic data that raised more anxiety about the strength of the U.S. recovery from recession.

IN FOCUS

- U.S crude oil is expected to be an average $77.70 a barrel in 2010, a Reuters poll showed, up from $77.50 forecast in January, but could fall as the market moves into its weakest quarter and supply outweighs demand.

- The International Energy Agency said global demand would pick up more than expected in 2010, but all the growth would come from emerging markets

- The volume of crude oil held on tankers at sea has fallen to 25.64 million barrels, or 14 vessels at the end of January from 40.85 million barrels or 23 ships at the end of 2009, according to estimates by shipping broker SSY.

- The U.S. government on Thursday revised its U.S. oil demand figure slightly higher for December, leading to a small year-overyear increase that could be a sign the economic recovery may be bolstering petroleum consumption.

- U.S. natural gas inventories fell last week below year-ago levels for the first time in 13 months, the Energy Information Administration said.

- Seaborne oil exports by OPEC, excluding Angola and Ecuador, will fall by 290,000 barrels per day in the four weeks to March 13, according to the latest weekly estimate from U.K. consultancy Oil Movements.

FUNDAMENTAL OUTLOOK

Crude Oil futures are trading a tad higher on NYMEX today. We expect crude oil prices to show further strength as revised US crude oil demand estimates and estimated GDP numbers to be released later in the day from the US will support the prices of Crude Oil.