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Commodities Energy

Oil and natural gas daily review (April 16, 2014)

April 16, 2014, Wednesday, 05:31 GMT | 00:31 EST | 09:01 IST | 11:31 SGT
Contributed by Angel Broking


Crude Oil

Brent crude oil prices gained in yesterday’s session while WTI crude oil prices declined on news from both end as Ukrainian armed forces launched military operations in the east of the country, though gains were limited by the prospect of a resumption of oil exports from Libya.

Also pressuring U.S. crude oil prices was an expected rise in domestic stockpiles. The American Petroleum Institute reported that U.S. crude stocks rose by 7.6 million barrels last week, far more than the 1.8 million barrel rise expected in a Reuter’s poll of analysts.

API Inventories Update

The API released its weekly inventories report last night at 8:00pm IST and US crude oil inventories gained by 7.6 million barrels for the week ending on 11th April 2014. Gasoline stocks declined by 0.49 million barrels whereas distillate inventories declined by 1.1 million barrels for the same period.

EIA inventories Forecast

The EIA is scheduled to release its weekly inventories report today at 8:00pm IST and US crude oil inventories is expected to gain by 2.3 million barrels for the week ending on 11th April 2014. Gasoline stocks are expected to fall by 1.7 million barrels whereas distillate inventories are expected to have fallen by 400,000 barrels for the same period.


Outlook

On an intraday basis we expect crude oil prices to trade on a mix note as oil markets continue to see geo-political tensions on one hand while resumption of exports from Libya can exert downside pressure on prices.

Meanwhile there are host of data sets to be released from the US in the evening session as oil markets take further cues from the economic indicators.

In the Indian markets, oil prices are expected to trade on mix note taking cues from weak international markets and rupee weakness.

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