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Commodities » Energy

Oil and natural gas daily review (August 04, 2014)

August 4, 2014, Monday, 04:48 GMT | 23:48 EST | 09:18 IST | 11:48 SGT
Contributed by Angel Broking


Crude Oil

Nymex crude prices declined by last week on excess supplies in Europe and Asia and robust oil production in the OPEC nations. Prices continued to decline as CVR Refining said its 115,000-barrel-per-day refinery in Coffeyville, Kansas might be shut for as long as four weeks after a fire in a gasoline-related unit on Tuesday.

The refinery is a major consumer of benchmark West Texas Intermediate (WTI) crude. A lengthy shutdown of the Coffeyville refinery could temper demand for WTI crude.

On the flip side, the crisis between Russia and the West continued to keep the market on edge after the European Union and the United States imposed further sanctions against Moscow on Tuesday for its support of pro-Moscow rebels in Ukraine.

However, analysts remained dubious on whether the new economic sanctions on Moscow would have any immediate impact on Russian oil exports. In the international markets, crude oil prices declined by more than 4 percent and closed at $97.88/bbl.

On the domestic bourses, prices fell by around 2.86 percent in the last week taking cues from weakness in International markets.


Outlook

Oil prices have steadily eased after hitting multi-month highs in June on world political tensions. However, ample supplies of crude by the OPEC, rising supplies in the US, build up of gasoline inventories in the US and lengthy shutdown at a Kansas oil refinery are all indications that crude prices will correct further in today’s session.. Meanwhile, In Europe, traders are watching how sanctions will affect oil exports from Russia.

On the MCX, crude oil prices are expected to trade on a negative note taking cues from weak international markets.