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Commodities Energy

Oil and natural gas daily review (April 03, 2014)

April 3, 2014, Thursday, 06:28 GMT | 01:28 EST | 09:58 IST | 12:28 SGT
Contributed by Angel Broking


Crude Oil

Oil prices declined in yesterday’s session on expectations that rebel-held Libyan ports will reopen within days. Opening of ports will lead to more exports from Libya. Further weighing on Brent, a rebel group in eastern Libya has agreed with the government to end its blockade of three, vital oil export ports. Together, those ports accounted for exports of 600,000 barrels per day (bpd) before they were occupied by rebel groups last summer.

U.S. crude oil prices tried to rally on bullish data from the Energy Information Administration (EIA) on Wednesday that showed domestic crude inventories fell last week. But the American benchmark held in negative territory on a number of other economic factors.

On the MCX, crude prices declined by 0.4 percent making an intraday and closed at Rs.5964/bbl.

EIA inventories forecast

The US Energy Department (EIA) released its weekly inventories report last night at 8:00pm IST and US crude oil inventories declined by 2.4 million barrels to 380 million barrels for the week ending on 28th March 2014.

Gasoline stocks declined by 1.6 million barrels whereas distillate inventories gained by 0.55 million barrels for the same time period

Natural Gas inventory Forecast

The US Energy Department (EIA) is scheduled to release the natural gas inventory report tonight at 8 PM IST and inventories are expected to decline by 75BCF for the week ending March 28.


Outlook

We expect crude prices to trade lower on an intraday basis as hopes of higher supplies from Libya on account of opening of rebel held ports will exert downside pressure on prices. On the contrary, prices will take cues from the NFP data to be released from US tomorrow. Good jobs data will help crude prices to rise whereas a bad data will pressurize prices further.

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

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