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Commodities Energy

Oil and natural gas daily review (April 11, 2014)

April 11, 2014, Friday, 05:43 GMT | 00:43 EST | 10:13 IST | 12:43 SGT
Contributed by Angel Broking


Crude Oil

Crude prices declined by 0.2 percent in yesterday’s session on account of weak economic data from China and prospects of rebound in oil exports from Libya. Both China's exports and crude imports fell, stoking concerns about demand in the world's second-biggest economy. The trade data coincided with news that OPEC lowered its 2014 forecast for oil demand.

On the other hand, sharp downside in prices was cushioned as U.S. jobless claims fell to their lowest level in 7 years. But that was not enough to outweigh data released Wednesday that showed U.S. crude oil stocks jumped by 4 million barrels last week.

On the MCX, crude prices gained marginally by 0.2 percent on account of rupee depreciation and closed at Rs.6246/bbl.


Natural gas

U.S. natural gas futures rose more than 1.5 percent on Thursday after a government report showed a smaller-than-expected storage addition, raising concern that the industry is making a slow start in replenishing supplies needed for the next heating season.

Natural Gas Inventories Update

The US Energy Department (EIA) released its weekly Natural Gas inventories report last night at 8:00pm IST and inventories gained by 4 BCF to 826 BCF the lowest for this time of year since 2003.


Outlook

Weak economic data from China and OPEC lowering its forecast for oil demand in 2014 does not bode well for energy markets. Although the economic data from US brightened the prospects of growth, prices traded lower on prospects of increasing exports from Libya. On an intraday basis we expect crude prices to trade higher in the international as well as domestic markets on account of good jobs data from US.

In the Indian markets, Rupee movement will provide further direction to prices.

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