Commodities » Energy

Oil and natural gas daily review (August 18, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

U.S. crude oil futures ended higher on Tuesday, rebounding after a five-day losing streak, as stronger equities helped ease some worries about the economy and a weaker dollar prompted more risk-taking in commodities.

IN FOCUS

- Ecuador's government will take at least 85 percent of revenue under a new round of oil contracts to be negotiated with private petroleum companies, Ecuador's minister for oil policy Wilson Pastor said on Tuesday.

- Enbridge Inc's struggles mounted on Tuesday as its U.S. affiliate said the oil spill that fouled a Michigan river system could cost as much as $400 million and regulators slapped it with a $2.4 million fine for a deadly 2007 explosion in Minnesota.

- 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.

- U.S. crude inventories rose by 5.866 million barrels in the week to Aug. 13, the API data showed, and expectations for a 1 million barrel draw.

FUNDAMENTAL OUTLOOK

Crude oil prices are trading marginally down on NYMEX today. We have crude oil inventory data to be released for EIA later in the evening today. Any major changes from expectation are likely to give directions to the crude oil prices today.