Commodities » Energy

Oil and natural gas daily review (March 10, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude oil futures ended down on Tuesday, dropping from Monday's eight-week high, as the dollar's strength and forecasts that weekly inventory data would show domestic crude stocks rose pressured the market.

IN FOCUS

- The American Petroleum Institute said after Tuesday's settlement that U.S. crude stocks jumped 6.5 million barrels, against the forecast in a poll for a 1.9 million-barrel build.

- The API data showed gasoline stocks fell 3.2 million barrels, against the forecast for a 200,000-barrel increase, while distillate stocks fell a bigger-than-expected 2.8 million barrels.

- The U.S. Energy Information Administration raised its 2010 global oil demand forecast by 270,000 barrels per day. It expects world demand to rise by 1.47 million bpd in 2010.

- CHINA FEB CRUDE IMPORTS AT 18.51 MLN TONNES - CUSTOMSCHINA FEB OIL PRODUCT EXPORTS 1.6 MLN TONNES VS 2.7 MLN TONNES IN JAN - CUSTOMSCHINA FEB OIL PRODUCT IMPORTS 2.89 MLN TONNES VS 2.54 MLN TONNES IN JAN - CUSTOMSCHINA JANFEB CRUDE IMPORTS UP 45.8 PCT ON YR AT 35.62 MLN TONNES - CUSTOMS

- Saudi Arabia, the world's top crude oil exporter, will supply full contracted volumes in April to at least three Asian term buyers, steady from March levels, industry sources said on Wednesday.

- OPEC may not necessarily boost output if oil demand rises, as producers outside the group could increase their production, Iran's OPEC governor was quoted as saying on Tuesday.

- The global economic recovery will push world oil demand sharply higher in 2010, the U.S. Energy Information Administration said on Tuesday as it increased its demand growth forecast for a second consecutive month.

FUNDAMENTAL OUTLOOK

Crude futures extended declines on Wednesday from an eight-week high after industry data showed a sharp build in U.S. crude inventories. Outlook for crude oil is sideways to up for the day, buying at dips is recommended. In the evening session we have EIA crude inventory stocks to be released by the US any major draw or build can drive the markets in either direction.