Commodities » Energy

Oil and natural gas daily review (July 23, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

U.S. crude oil futures surged more than 3 percent to an 11-week high above $79 a barrel, lifted by better-than-expected economic data that also boosted equities markets and on concerns about a tropical depression that might threaten Gulf of Mexico production.

IN FOCUS

- Angolan crude oil cargoes sold at stronger discounts to dated Brent in the first batch of reported deals since the preliminary September loading programme released at the end of last week.

- U.S. natural gas storage levels on average are expected to rise by 53 billion cubic feet when weekly data from the U.S. Energy Information Administration are released early Thursday.

- Murphy Oil Corp said on Thursday it would sell its three refineries to focus on oil and gas exploration and its U.S. retail business. Refiners have struggled to make profits as the global economic slowdown sapped demand for fuels like diesel and gasoline.

- Cyclone Power Technologies, Inc. has successfully performed combustion acceptability tests of crude oil recovered from the Gulf of Mexico with its awardwinning, heat-regenerative external combustion engine.

FUNDAMENTAL OUTLOOK

Crude oil is trading steady on NYMEX today. Our look for crude remains bullish on the back of potential storm threatened production in the Gulf of Mexico and strong corporate results. Buying at every dip is recommended today.