Commodities » Energy

Oil and natural gas daily review (December 28, 2011)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Crude oil rose for a sixth straight session on Tuesday as Iran's threat to stop oil from moving through the Strait of Hormuz if sanctions on Tehran's oil sales are imposed added to concerns about potential threats to the supply in the region.

IN FOCUS

- Iran threatened on Tuesday to stop the flow of oil through the Strait of Hormuz if foreign sanctions were imposed on its crude exports over its nuclear ambitions, a move that could trigger military conflict with economies dependent on Gulf oil.

- Oil and gas output this year at PetroChina's Changqing Oilfield reached 40.59 million tonnes of oil equivalent, or 811,800 barrels per day as of Dec 27, China Petroleum Daily reported on Wednesday, rivaling Daqing, the top Chinese oilfield for decades.

- The Chinese government has called on the country's biggest energy users to save 250 million tonnes of standard coal in the five years ending 2015, the National Development and Reform Commission said in a release published on Wednesday.

- Top oil exporter Saudi Arabia and other Gulf OPEC states are ready to replace Iranian oil if further sanctions halt Iranian crude exports to Europe, industry sources said on Tuesday.

FUNDAMENTAL OUTLOOK

Crude oil is trading flat on NYMEX today. We expect prices to trade higher for the following trading session on account of threats by Iran to halt oil shipments through the Strait of Hormuz.