Commodities » Energy

Oil and natural gas daily review (March 08, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude oil futures ended at their highest level in nearly eight weeks on Friday, rallying with Wall Street, as government data showed that U.S. employers cut a smaller number of jobs than expected in February, bolstering economic recovery hopes.

IN FOCUS

- China's crude oil output will rise by 1-2 percent this year, Yu Baocai, vice president of state-owned China National Petroleum Corp (CNPC), said on Sunday.

- 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

Crude futures extended gains towards $82 a barrel on Monday, their highest in nearly eight weeks, in line with strong Asian shares and hopes for economic recovery in the world's top oil consumer. Outlook for crude oil is sideways to up buying at dips is recommended.