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Commodities Energy

Oil and natural gas daily review (April 10, 2014)

April 10, 2014, Thursday, 05:48 GMT | 00:48 EST | 09:18 IST | 11:48 SGT
Contributed by Angel Broking


Crude Oil

WTI crude gained by more than $1 on Wednesday due to unexpectedly high gasoline demand amid rising tensions in the Crimean peninsula.

U.S. Secretary of State John Kerry telephoned Russian Foreign Minister Sergei Lavrov twice after a senior U.S. diplomat said earlier on Wednesday that Washington had no doubt Russians instigated the separatist occupation of several government buildings in eastern Ukraine this week.

EIA inventories Update

U.S. crude inventories rose by 4 million barrels to 384.1 million barrels in the week to April 4, data from the Energy Information Administration (EIA) showed, compared with analysts' expectations for an increase of 1.3 million barrels. Gasoline stocks fell by 5.2 million barrels, while distillate inventories increased by 0.2 million barrels for the same time period.


Natural gas

Natural gas prices on the NYMEX gained by 0.57 percent and closed at $4.55/mmbtu, while on the MCX, prices declined by 1.06 percent on profit booking and closed at Rs.276.5/mmbtu.

Natural Gas Inventories Forecast

The US Energy Department (EIA) is scheduled to release its weekly Natural Gas inventories report tonight at 8:00pm IST inventories are expected to gain by 15BCF for the week ending on 4th April 2014.


Outlook

On an intraday basis, we expect crude prices to trade on a positive note as geo-political tensions continue to be at the forefront. Besides high gasoline demand in the US will also act as a positive factor and lift prices. However sharp upside in the prices will be capped on account of rising crude inventories and this will exert downside pressure on prices.

In the Indian markets, crude prices are expected to trade higher taking cues from international markets and rupee weakness.