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Commodities Energy

Oil and natural gas daily review (December 26, 2013)

December 26, 2013, Thursday, 06:07 GMT | 01:07 EST | 10:37 IST | 13:07 SGT
Contributed by Angel Broking


Crude Oil

Nymex crude oil prices gained around 0.3 percent on Tuesday on the back of supply concerns from South Sudan after partial shutdown. Further, estimates of rise in demand for the fuel after favorable core durable goods from the US acted as a positive factor. Additionally, decline in US gasoline and distillate inventories also supported an upside in the prices.

However, sharp upside in the prices was capped due to strength in the DX. Crude oil prices touched an intra-day high of $99.3/bbl and closed at $99.20/bbl on Tuesday.

On the domestic bourses, prices rose around 0.1 percent and closed at Rs.6160/bbl after touching an intra-day high of Rs.6174/bbl on Tuesday. Rupee appreciation capped sharp gains in the prices on the MCX.

API Inventories Data

As per the American Petroleum Institute (API) report last night, US crude oil inventories gained by 716,000 barrels to 368.50 million barrels for the week ending on 20th December 2013.

Gasoline inventories dropped by 2.5 million barrels to 219.48 million barrels and whereas distillate inventories fell by 722,000 barrels to 114.40 million barrels for the same week.


Outlook

From the intra-day perspective, we expect crude oil prices to trade higher on the back of supply concerns from South Sudan after partial shutdown due to unrest in the country. Further, upbeat market sentiments coupled with weakness in the DX supported an upside in the prices. Additionally, estimates of rise in demand for the fuel after favorable core durable goods order data from the US on Tuesday will act as a positive factor. Also, forecast for decline in the US jobless claims data in the evening session will continue with positive movement in the prices.

In the Indian markets, Rupee appreciation will cap sharp gains in the prices.