Commodities » Energy

Oil and natural gas daily review (July 28, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

U.S. crude oil futures extended losses on Tuesday, dropping more than $2 and falling below $77 a barrel as a report showing consumer confidence fell in July weighed on oil and equities markets.

IN FOCUS

- RRI Energy Inc's 741-megawatt Unit 1 at the Ormond Beach natural gas-fired power station in California was shut for unplanned maintenance by Tuesday afternoon, the California Independent System Operator said in a report.

- 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

Industrial metals edged slightly up on LME. We may see some bounce back early in the session today on the back of bargain hunting but overall outlook in industrial metals remains bearish. Selling on rise should be the investor's strategy today. Copper in particular looks weak today.