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Commodities Energy

Oil and natural gas daily review (April 29, 2014)

April 29, 2014, Tuesday, 05:24 GMT | 00:24 EST | 08:54 IST | 11:24 SGT
Contributed by Angel Broking


Crude Oil

Brent crude oil prices declined on Monday, while WTI inched closer towards $101 mark as Libya prepares to resume its exports from the eastern port.

On the other hand WTI oil prices gained as The United States slapped sanctions on seven Russian government officials and 17 companies linked to Russian President Vladimir Putin on Monday in a fresh attempt to force Moscow to back down from its intervention in Ukraine.

On the MCX, crude prices gained by marginally by 0.1 percent diverging from international markets and closed at Rs.6135 /bbl.


API inventory forecast

The API is scheduled to release its weekly inventories report tonight at 8:00pm IST and US crude oil inventories is expected to gain by 1.9 million barrels for the week ending on 25th April 2014. Gasoline stocks are expected to fall by 1.1 million barrels whereas distillate inventories are expected to have risen by 0.8 million barrels for the same time period.


Outlook

On an intraday basis, we expect crude oil prices to trade on weak note on expectations that inventory report due tonight will show a build up once again as inventories are at record high at this time of the year.

Also, Libya’s restart of exports from its eastern Zueitina oil port paves the way for extra supplies in crude markets.

On the other hand, sharp fall in prices will be cushioned on escalation of geo-political tensions as US imposes fresh round of sanctions on Russian assets. On the MCX, prices are expected to trade with a negative bias taking cues from international markets.