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Commodities Energy

Oil and natural gas daily review (December 30, 2013)

December 30, 2013, Monday, 04:45 GMT | 23:45 EST | 09:15 IST | 11:45 SGT
Contributed by Angel Broking


Crude Oil

Nymex crude oil prices gained around 1.6 percent in the last week on the back of supply concerns from South Sudan after partial shutdown. Further, more than expected decline in US crude oil inventories acted as a positive factor.

Additionally, weakness in the DX coupled with favorable economic data from the US supported an upside in the prices. Crude oil prices touched a weekly high of $100.75/bbl and closed at $100.30/bbl in last trading session of the week.

On the domestic bourses, prices rose by more than 1 percent and closed at Rs.6261/bbl on Friday after touching a weekly high of Rs.6272/bbl. Rupee appreciation capped sharp gains in the prices on the MCX.

EIA Inventories Data

As per the US Energy Department (EIA) report, US crude oil inventories declined more than expected by 4.73 million barrels to 367.60 million barrels for the week ending on 20th December 2013.

Gasoline stocks declined around 614,000 barrels to 219.90 million barrels and whereas distillate stockpiles plunged by 1.85 million barrels to 114.10 million barrels for the last week.


Natural Gas

EIA Inventories Data

US Energy Information Administration (EIA) released its weekly inventories yesterday and US natural gas inventory declined as estimated by 177 billion cubic feet (bcf) which stood at 3.071 trillion cubic feet 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, in US crude oil inventories in the last week will act as a positive factor. Also, expectations of rise in demand for the fuel from the US after favorable economic data in the last week will continue with positive movement in the prices.

In the Indian markets, Rupee appreciation will prevent sharp positive movement in the prices.