Commodities » Energy

Oil and natural gas daily review (March 11, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude Oil prices settled at an eight-week high on NYMEX in choppy trading after a government report showed that gasoline stocks in the United States dropped unexpectedly.

IN FOCUS

- China's refinery crude throughput increased to a record high of 8.32 million barrels per day (bpd) in February, data from the National Bureau of Statistics showed on Thursday.

- U.S. crude oil inventories logged their sixth straight rise last week on lower refinery runs while higher demand and reduced production left gasoline stocks down unexpectedly, government data on Wednesday showed. Distillates stocks fell more than forecast. Commercial crude oil stockpiles were up by 1.4 million barrels at 343 million barrels in the week to March 5, reported the U.S. Energy.

- Saudi Arabia will reduce crude supply in April to a major Asian buyer ahead of OPEC's meeting next week, the first cut to a big lifter since late last year, but will keep full contracted volumes to others.

- Chile's Aconcagua oil refinery, damaged by a giant earthquake Feb. 27 was still shut on Wednesday but being inspected to allow for a restart this week, a person familiar with the company's operations said.

- Global oil demand will rise more quickly than expected in 2010, OPEC said on Wednesday, increasing the need for crude from the 12-member group which meets to set policy next week.

- Chinese Petroleum Company Sinopec plans to raise crude oil throughput at its Luoyang refinery by about 9 percent to 154,000 barrels per day (bpd) in 2010, to meet rising fuel demand in central Chinese provinces, the head of the refinery said on Wednesday.

FUNDAMENTAL OUTLOOK

Crude oil prices are trading a tad lower on NYMEX today. We expect Crude oil prices to retreat from current levels taking cues from softness in Asian equity markets.