Commodities » Energy

Oil and natural gas daily review (September 08, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude Oil fell more than $1 to below $74 a barrel yesterday on NYMEX as renewed concerns about the health of the European banking sector raised further doubts about the ongoing economic recovery and the outlook for energy demand.

IN FOCUS

- U.S. crude oil stockpiles likely fell for the first time in three weeks last week due to lower imports as refineries took precautionary measures taken ahead of stormy weather, a preliminary Reuters poll ahead of weekly inventory reports showed on Tuesday.

- Iraqi Oil Minister Hussain al-Shahristani said on Tuesday he saw no big demand for crude and therefore no reason for OPEC to reconsider its current production levels at its next meeting.

- Venezuelan oil exports fell 8.7 percent in August to an average of 2.34 million barrels per day as a drop in sales of crude and products offset rising output from the Orinoco belt, the energy ministry said on Tuesday.

- Major Gulf of Mexico oil producers said on Tuesday that their offshore operations were unaffected by the one-day passage of Tropical Storm Hermine through the western Gulf of Mexico on Monday.

- Iraq's South Oil Co. and its foreign partners have set quarterly 2011 production targets for Iraq's southern oilfields including a 1.25 million barrel per day year-end target for workhorse Rumaila.

FUNDAMENTAL OUTLOOK

Crude oil prices are trading lower on NYMEX today. In the evening session we have the crude oil inventory report to be released by the API. An expectation of a draw down in stocks will limit the downside in crude oil prices.