Commodities » Energy

Oil and natural gas daily review (August 31, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

U.S. crude oil futures ended lower on Monday, snapping a three-day winning streak, as energy markets took a cue from equities, which fell amid worries about the faltering economic recovery.

IN FOCUS

-U.S. oil demand in June was slightly less than previously estimated, but consumption was still at its highest level since October 2008, the Energy Information Administration said on Monday.

-U.S. crude oil imports in June topped 10 million barrels per day on a monthly basis for the first time since October 2008 thanks to strong petroleum demand, the federal Energy Information Administration said on Monday.

-Kazakhstan plans to double its crude oil export duty to $40 per tonne from Jan. 1, two government sources told Reuters on Monday, less than six months after reinstating the tax when prices recovered from lows in the financial crisis. -Hurricane Earl strengthened into a powerful Category 4 storm on Monday after lashing the northeast Caribbean islands, and was expected to swipe the U.S. East Coast in the next few days, the U.S. National Hurricane Center said. -Russia started selling its new ESPO Blend crude from the Far East port of Kozmino since late 2009, marking one step towards expanding its exports into Asian markets.

-A 80,000 tonne vessel of Venezuela crude for Belarus arrived at Lithuania's Klaipeda port on Sunday, the port said. Belarus has been looking for alternative sources of crude for its refineries after the Russian Federation placed higher duties on crude exports.

-Gross natural gas production in June in the lower 48 U.S. states fell for the first time since December 2009, according to data released Monday by the U.S. Energy Information Administration.

FUNDAMENTAL OUTLOOK

Crude oil prices are trading marginally down on NYMEX today. Crude oil prices are expected to extend its downward rally as higher crude inventories. Crude oil inventory is due to be released from API later in the evening today. Any changes from expectation are likely to give direction to crude oil prices today.