Commodities » Energy

Oil and natural gas daily review (March 03, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude Oil fell more than 1 percent to below $79 a barrel on Monday as investors sold off an early rally and the dollar strengthened against the euro.

IN FOCUS

- The American Petroleum Institute (API) said after Tuesday's settlement that crude stocks rose 2.7 million barrels last week, distillate stocks were down 4.1 million barrels and gasoline stocks gained 909,000 barrels.

- Distillates, which include heating oil and diesel, were expected to be down 900,000 barrels, the poll showed. Gasoline stocks were forecast to be up 600,000 barrels, according to poll, with demand seen down, particularly in the East Coast, as bad weather put the brakes on long road trips, analysts said.

- U.S. stocks ended slightly higher on Tuesday as mergers and acquisitions supported selected sectors, but investors pulled back from recent gains in some big-cap technology and bank shares.

- The massive Venezuelan-run Isla refinery on the Caribbean island of Curacao remained shut on Tuesday due to a strike and power supply problems, in the latest hitch for a worldwide refining network run by Venezuela's state-run oil company.

- Iraqi Oil Minister Hussain al-Shahristani said on Tuesday he does not expect the Organization of Petroleum Exporting Countries to change its output target at a meeting later this month.

FUNDAMENTAL OUTLOOK

Crude futures stood steady in earlt trade session near $80 a barrel after a larger-than-expected build in U.S. crude inventories and a greater-than-forecast drawdown in distillates. Outlook for crude oil is sideways to up for the day buying at dips is recommended during the day.