Commodities

Oil and natural gas daily review (February 12, 2013)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices increased around 1.4 percent on the back of statement from European Council members that the currency is not overvalued and has warned government if they try to weaken it.

However, sharp upside in the crude oil prices was capped on account of strength in the DX. Crude oil prices touched an intra-day high of $97.09/bbl and closed at $97.03/bbl in yesterday's trading session.

On the domestic bourses, prices gained by 1.7 percent as a result of depreciation in the Indian Rupee and closed at Rs.5,229/bbl after touching an intra-day high of Rs.5,234/bbl on Monday.

API Inventories Forecast

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to rise by 2.9 million barrels for the week ending on 8th February 2013. Gasoline stocks are expected to remain unchanged and distillate inventories are expected to fall by 0.8 million barrels for the same week.

Outlook

In today's session, we expect crude oil prices to trade higher taking cues from positive comment by the European Central Bank council member that Euro is not overvalued along with weakness in the DX. However, expectation of rise in the crude oil inventories might restrict gains in the crude oil prices. Appreciation in the in the Indian Rupee will cap gains in the crude oil prices on the MCX.