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Commodities Energy

Oil and natural gas daily review (April 02, 2014)

April 2, 2014, Wednesday, 05:41 GMT | 00:41 EST | 09:11 IST | 11:41 SGT
Contributed by Angel Broking

Crude Oil

Oil prices declined in yesterday’s session on poor manufacturing data from China and Europe. Further weighing on Brent, a rebel group in eastern Libya will agree with the government to end its blockade of three, vital oil export ports within days, a senior rebel leader told Reuters on Tuesday. Together, those ports accounted for exports of 600,000 barrels per day (bpd) before they were occupied by rebel groups last summer.

On the MCX, crude prices declined by 2.1 percent making an intraday low of Rs.5979/bbl and closed at Rs.5990/bbl.

API Inventories Update

As per the American Petroleum Institute (API) report last night, US crude oil inventories fell by 5.8 million barrels for the week ending on 28st March 2014. Gasoline inventories rose by 18,000 barrels whereas distillate inventories slipped by 17000 barrels.

EIA inventories forecast

The US Energy Department (EIA) is scheduled to release its weekly inventories report today at 8:00pm IST and US crude oil inventories is expected to gain by 1.1 million barrels for the week ending on 28th March 2014.

Gasoline stocks are expected to fall by 1.1 million barrels whereas distillate inventories are expected to have fallen by 100,000 barrels for the same period.


We expect crude prices to trade lower on an intraday basis as poor economic data from China and Europe will act as a negative factor. Besides, rebels in Libya have agreed to end its protest with the government making room for more exports from Libya in the coming days. Also, the inventory report from EIA to be released tonight is expected to show buildup for consecutive fourth week.

In the Indian markets, prices are expected to trade lower tracking cues from international markets and rupee appreciation.