Commodities » Energy

Oil and natural gas daily review (March 04, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude oil futures rose for the second day in a row on Wednesday, posting the highest close in seven weeks, as economic data eased recovery worries and the dollar fell against the euro.

IN FOCUS

- Royal Dutch Shell said on Wednesday an oil flowstation in Nigeria's restive Niger Delta had been damaged by an explosion, in what appeared to have been an attack by a militant splinter group.

- Chile's top oil refinery, damaged by a devastating earthquake, could be shut down for a month, which would boost the need for fuel imports to the world's top copper producer.

- Wednesday's climb came despite government data showing U.S. crude stocks rose by 4.1 million barrels last week, more than the 1.4 million barrel increase forecast. Gasoline stocks rose 700,000 barrels, slightly more than expected.

- The Energy Information Administration report showed that total distillate stocks fell 900,000 barrels, in line the Reuters poll forecast. EIA data showed gasoline inventories up 700,000 barrels, just above the forecast for a 600,000 barrel increase but lower than the 909,000 barrel increase the API reported.

FUNDAMENTAL OUTLOOK

U.S. crude futures stood little changed near $81 a barrel on Thursday after a 1.5 percent rise a day earlier on the back of a weaker dollar. We may witness a slight profit booking in the early part of the trading session, but the outlook for crude oil remains bullish, buying at dips is recommended.