Commodities » Energy

Oil and natural gas daily review (September 07, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude Oil prices slipped below $74 per barrel yesterday on NYMEX as the end of the U.S. driving season and high levels of unemployment in the world's biggest oil consumer raised concerns over the outlook for demand.

IN FOCUS

- Peru's petroleum agency said on Monday the south of the country could be home to another 30 trillion cubic feet (TCF) of natural gas, which would more than double the country's current proven reserves of the fuel.

- BP Plc, the largest oil producer in U.S.- regulated areas of the Gulf of Mexico, and Shell Oil Co said Monday that Tropical Storm Hermine was not affecting their offshore operations.

- The Russian oil industry's key growth area, the Arctic Yamal Nenets region, is getting closer to a pipeline link-up with Asia and the Pacific, the largest growth market for the country's abundant energy resources.

- Ecuador's crude exports fell to 312,770 barrels per day in July, down from 326,245 bpd in the same month last year, the central bank said on Monday.

- Valero Energy Corp said production at its 315,000-barrel-per-day (bpd) Corpus Christi, Texas, refinery was unaffected Monday morning. The company was preparing for possible rough weather late Monday due to Tropical Storm Hermine.

FUNDAMENTAL OUTLOOK

Crude oil prices are trading lower on NYMEX today. We expect crude oil prices to remain firm for the day on account of firm Asian equity markets.