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Commodities Energy

Oil and natural gas daily review (April 04, 2014)

April 4, 2014, Friday, 05:19 GMT | 00:19 EST | 08:49 IST | 11:19 SGT
Contributed by Angel Broking

Crude Oil

US crude continues to trade above $100 on escalating tensions between Russia and Ukraine. Russia raised the gas price for Ukraine on Thursday for the second time this week, almost doubling it in three days and piling pressure on a neighbor on the brink of bankruptcy in the crisis over Crimea.

On the other hand, Libya has seen evidence of "good intentions" at indirect talks with eastern rebels which could lead to the lifting of their blockage of major oil ports within days. The restart of Libya's eastern oil ports could release about 600,000 bpd of crude, bumping up the OPEC producer's output from around 150,000 bpd, but still far from the 1.4 million bpd it produced in July.

On the MCX, crude prices gained around 1.6 percent to close at Rs.6058/bbl.

Natural Gas inventory Update

The US Energy Department (EIA) released the natural gas inventory report last night at 8 PM IST and inventories declined by 74BCF for the week ending March 28.


We expect crude prices to trade on a mix note today as investors will keenly watch for the US jobs data on one hand while the restart of Libyan ports raises hopes of more crude supplies in the energy market.

Also, the geo-political tensions between Russia and US seems to be never ending tussle as some or the other developments happen raising tensions in the energy markets with regards to supplies from Russia.

On the MCX, we expect crude prices to trade positive on account of rupee weakness and tracking cues from international markets.