Commodities » Energy

Oil and natural gas daily review (August 10, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude Oil prices rose yesterday for the first time in four sessions, edging back above $81 a barrel on expectations that the U.S. Federal Reserve will keep borrowing rates low and may signal its readiness to print more money to support a faltering economic recovery.

IN FOCUS

- The collision of two cargo ships off Mumbai at the weekend shut India's busiest port on Monday, caused an oil slick and stalled the delivery of 1.5 million barrels of crude oil for one of the biggest refiners.

- U.S. crude oil inventories fell last week for the second week in a row as imports dipped, also for the second straight week, a preliminary Reuters poll ahead of weekly inventory reports showed on Monday.

- A low pressure system over the oil rich Gulf of Mexico just off southwest Florida strengthened slightly and now has a medium 30 percent chance of strengthening into a tropical depression over the next 48 hours as it moves toward the Louisiana coast, the U.S. National Hurricane Center said in a report on Monday.

- Japan may consider cutting crude oil imports from Iran as pressure builds from the United States to impose sanctions on the Islamic Republic over its nuclear programme, an official told Reuters on Monday.

- China imported 19 million tonnes or 4.47 million barrels per day of crude oil in July, down from June's record 5.4 million bpd,official data from the General Administration of Customs showed on Tuesday.

- Cosmo Oil Co, Japan's fourth-biggest refiner, said on Monday it plans to shut the 50,000 barrels per day No.5 crude distillation unit (CDU) at its Yokkaichi plant from early October to mid-November.

FUNDAMENTAL OUTLOOK

Crude oil prices are trading a tad lower on NYMEX today. In the evening session we have the crude oil inventory report to be released by the API. Any major drawdown in stocks reported will limit the downside in crude oil prices.