Commodities

Oil and natural gas daily review (February 07, 2013)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices traded on a flat note in yesterday's trading session taking cues from decline in supplies of 315,000 barrels in the last week at Cushing, Oklahoma, the biggest storage hub and delivery point for crude oil in US. Additionally, less than expected rise in US crude oil inventories also supported an upside in the crude oil prices.

However, sharp upside in the crude oil prices was capped on account of strength in the DX. Crude prices touched an intra-day high of $96.99/bbl and closed at $96.62/bbl in yesterday's trading session.

On the domestic bourses, prices declined by 0.1 percent and closed at Rs.5,139/bbl after touching an intra-day low of Rs.5,070/bbl on Wednesday.

EIA Inventories Data

As per the US Energy Department (EIA) report, US crude oil inventories rose less than expected by 2.6 million barrels to 371.70 million barrels for the week ending on 1st February 2013. Gasoline stocks gained by 1.7 million barrels to 234.0 million barrels and whereas distillate stockpiles fell by 1.0 million barrels to 129.60 million barrels for the last week.

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 135 billion cubic feet (bcf) for the week ending on 1st February 2013.

Outlook

In today's session, we expect crude oil prices to trade higher on expectation of rise in the demand while supplies at the Cushing, Oklahoma, dropped. However, sharp upside in the prices will be capped owing to strength in the DX. Depreciation in the Indian Rupee will support an upside in the crude oil prices on the MCX.