Commodities » Energy

Oil and natural gas daily review (March 19, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude oil futures ended lower on Thursday as the euro fell against the dollar on persistent worries about Greece's debt problems, turning oil traders cautious and snuffing a two-day advance in oil prices.

IN FOCUS

- OPEC member Venezuela said on Thursday its proven crude reserves had risen 22.5 percent during 2009 to close the year at 211.17 billion barrels.

- The South American nation's reserves were 172.32 billion barrels at the end of 2008, according to Oil Ministry figures published in the government's official gazette.

- OPEC has less room to raise production as global oil use recovers because of Russia's increasing output, said Shokri Ghanem, the head of Libya's delegation to the organisation.

- Organization of the Petroleum Exporting Countries (OPEC) ministers on Wednesday agreed not to change oil output targets they are already exceeding, anticipating that demand will pick up later in the year to mop up extra barrels the producers may pump.

- OPEC is likely to continue to leave its oil output quotas unchanged at its next meeting in October, Kuwaiti Oil Minister Sheikh Ahmad al-Abdullah al-Sabah told Reuters on Thursday.

- When asked if he thought OPEC would need to alter output in October, the minister replied: "Right now I don't see any sign of change in our position; we are comfortable with the $70-$80 price range because it is good for consumers and exporters.

FUNDAMENTAL OUTLOOK

Crude futures remained weak on Friday after a nearly 1 percent decline a day earlier as the dollar stayed strong against the euro. We expect crude oil to trade firm during the day, buying at dips is recommended.