New York: 05:23 || London: 10:23 || Mumbai: 13:53 || Singapore: 16:23

Commodities Energy

Oil and natural gas daily review (April 17, 2014)

April 17, 2014, Thursday, 05:35 GMT | 00:35 EST | 09:05 IST | 11:35 SGT
Contributed by Angel Broking


Crude Oil

Crude oil prices traded higher in yesterday’s session as concerns over clashes between pro-Russia militants and Ukrainian forces continued to feed worries over global oil supplies. On the other side, A U.S. government report on Wednesday showed a weekly jump in crude inventories that was over four times more than the market expected and this can possibly exert downside pressure on prices.

In the Indian markets crude prices declined marginally by 0.4 percent and closed at Rs.6250/barrel.

EIA inventories update

The EIA released its weekly inventories report last night at 8:00pm IST and US crude oil inventories gained by 10 million barrels for the week ending on 11th April 2014. Gasoline stocks declined by 0.2 million barrels whereas distillate inventories declined by 1.3 million barrels for the same period.


Natural Gas

Nymex Natural gas Prices fell by around 0.6 percent yesterday taking cues from rising temperature and expectations of inventory build up on account of low demand, thereby pushing prices to touch an intra-day low of $4.523/bbl.

MCX NG prices rose by around 0.7 percent owing to Rupee depreciation and touched an intra-day high of Rs.278.3/bbl on Wednesday.

Natural Gas inventories

The US Energy Department (EIA) is scheduled to release its weekly Natural Gas inventories report tonight at 8:00pm IST and inventories are expected to show a build-up of 35 BCF for the week ending 10th April 2014.


Outlook

On an intraday basis, crude prices are expected to trade with a positive bias on account of escalating geo-political tensions between US and Russia, while on the other hand a build-up of around 10 million barrels of crude inventories raises concerns over declining demand which in turn can exert downside pressure on prices.

On the MCX, crude prices are expected to trade with a positive bias taking cues from international markets.