Commodities » Energy

Oil and natural gas daily review (July 27, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

U.S. crude oil futures settled unchanged on Monday, remaining parked just under $79 a barrel as strong U.S. new home sales data boosted equities and oil, even as returning production after a fizzled tropical storm kept oil prices in check.

IN FOCUS

- An oil pipeline break in Michigan on Monday shut part of a system carrying Canadian crude oil to the U.S. Midwest and southern Canada, Enbridge Energy Partners said.

- Only three cargoes of gasoline have reached Iran so far in July, according to a shipping document seen by Reuters, much less than the seasonal norm, as new sanctions divert ships carrying fuel.

- OPEC member Ecuador said it enacted a law on Monday aimed at increasing state control over the oil sector and that the legislation would permit the state to "liquidate" contracts of non-complying companies.

- Azerbaijan state-owned firm SOCAR will supply Vietnam's sole oil refinery, the 135,500 barrels-a-day capacity Dung Quat, with 65,000 cubic metres of crude oil next month, a state-run newspaper reported on Tuesday.

FUNDAMENTAL OUTLOOK

Crude oil prices are trading slightly down on NYMEX today. Crude oil inventory data from API is due in the evening session today. Expectations are showing a decline in U.S. crude inventories that may further support the prices of Crude oil.