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Commodities » Energy

Oil and natural gas daily review (April 07, 2014)

April 7, 2014, Monday, 05:14 GMT | 00:14 EST | 09:44 IST | 12:14 SGT
Contributed by Angel Broking


Crude Oil

In the last week, Nymex crude oil prices started the week on a positive note moved in a band of $3 and ended marginally negative. 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 last week, almost doubling it in three days and piling pressure on a neighbor on the brink of bankruptcy in the crisis over Crimea.

Prices declined on news of restart of Libyan ports that can open up 600,000 bpd of crude for exports from Libya and poor manufacturing data from China and Europe. WTI Crude oil prices touched a high of $101.97/bbl and closed at $101.14/bbl last week.

On the domestic bourses, prices declined marginally by 0.5 percent in the last week and closed at Rs.6080/bbl on Friday after touching a weekly low of Rs.5933/bbl.


Outlook

On an intraday basis we expect crude prices to trade on a negative note as renewed concerns about pace of economic recovery in US will exert downside pressure on prices. The jobs data released last Friday disappointed market expectations coupled with the unemployment rate that remain unchanged at 6.7 percent.

On the other hand, Oil can draw additional support from hopes that China will implement additional stimulus to shore up economic growth. Meanwhile markets will await the monthly reports from the IEA and the OPEC countries due later in the week as it will indicate expectations of supply and demand in the global market.

On the MCX, crude oil will trade lower tracking cues from international markets and rupee appreciation.