Commodities » Energy

Oil and natural gas daily review (August 17, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

US Crude oil futures ended lower for the fifth consecutive session on Monday as weak economic data from Japan and the United States fueled more worries about energy demand, erasing support from a weaker dollar.

IN FOCUS

- Russia is set to raise its oil export duty in September by 3.6 percent to $273.5 per tonne, less than expected, according to Finance Ministry figure.

- A "madman" ConAgra oil trader who plotted for months to become the first to claim a $100 oil trade has instead helped land the firm a much more costly print: a $12 million fine for artificially bidding up the price of crude.

- Enbridge Inc shut its 190,000 barrel per day Line 6B crude oil pipeline after a leak on July26 in Marshall, Michigan. The line, part of Enbridge's massive pipeline system that carries the bulk of Canadian crude oil exports to the United States, runs northeast from Indiana to Sarnia, Ontario.

- Iraq has raised the official selling price of Basra light crude to U.S. buyers for September by 10 cents to $1.30 below the Argus (ASCI) benchmark, the State Oil Marketing Organization (SOMO) said on Sunday.

- Indian Oil Corp. (IOC) bought 4 million barrels of Nigerian crude oil in its second tender for October or late-September loading sweet crude.

FUNDAMENTAL OUTLOOK

Crude oil prices are trading marginally up on NYMEX today. Overall outlook for crude oil remains bearish today on the back of increasing concerns for global economy recovery. We have crude oil inventory data to be released from API later in the evening today. Any draw down from the expectations may limit the downside in crude oil.