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Commodities Energy

Oil and natural gas daily review (December 27, 2013)

December 27, 2013, Friday, 04:21 GMT | 23:21 EST | 08:51 IST | 11:21 SGT
Contributed by Angel Broking


Crude Oil

Nymex crude oil prices gained around 0.3 percent yesterday on the back of supply concerns from South Sudan after partial shutdown. Further, estimates of rise in demand for the fuel after favorable jobless claims data from the US acted as a positive factor.

Additionally, weakness in the DX supported an upside in the prices. Crude oil prices touched an intra-day high of $99.70/bbl and closed at $99.55/bbl in yesterday’s trading session.

On the domestic bourses, prices rose around 0.6 percent due to Rupee depreciation and closed at Rs.6199/bbl after touching an intra-day high of Rs.6203/bbl on Thursday.

EIA Inventories Forecast

The US Energy Department (EIA) is scheduled to release its weekly inventories report today at 9:30pm IST and US crude oil inventories is expected to fall by 2.3 million barrels for the week ending on 20th December 2013.

Gasoline stocks are expected to gain by 1.3 million barrels whereas distillate inventories are expected to plunged by 0.4 million barrels for the same period.


Natural Gas

EIA Inventories Forecast

US Energy Information Administration (EIA) is scheduled to release its weekly inventories and US natural gas inventory are expected to decline by 177 billion cubic feet (bcf) for the week ending on 20th December 2013.


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 will support an upside in the prices. Additionally, estimates of decline in US crude oil inventories will act as a positive factor. Also, expectations of rise in demand for the fuel from the US after more than expected decline in the US jobless claims data yesterday will continue with positive movement in the prices. In the Indian markets, Rupee depreciation will lead to further gains in the prices.