Commodities » Energy

Oil and natural gas daily review (September 01, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

U.S. crude oil futures extended losses in postsettlement trading on Tuesday, ahead of weekly inventory reports that are forecast to show domestic crude stocks rose last week. 

IN FOCUS

- U.S. crude inventories rose 4.8 million barrels in the week to Aug. 27, the API data showed, versus expectations for a 1.1 million barrel rise.

- Qatar, one of OPEC's smallest producers, has notified at least one Asian buyer that it will supply its Marine crude at full contracted volumes for October, unchanged from September levels, a trade source with knowledge of the matter said on Wednesday.

- 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.

FUNDAMENTAL OUTLOOK

Crude oil prices are trading steady on NYMEX today. We expect crude to trade down today. We have crude oil inventory data to be released from EIA later in the evening session today. Any major draw down in the stocks is likely to limit the down side in crude oil prices.