Commodities

Oil and natural gas daily review (January 01, 2013)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices gained 1.3 percent on the back of expectation of increase in the demand from the major consumers. However, strength in the DX an uncertainty over the fiscal cliff issue capped gains in the crude oil prices.

In the international market prices touched a high of $91.99 per barrel and closed at $91.8 bbl in yesterday's session. On the domestic bourses, prices rose on the back of depreciation in the Indian Rupee and closed at Rs.5,015/bbl after touching a high of Rs.5,023/bbl on Monday.

Natural Gas:

Nymex natural gas prices declined 3.4 percent on the back of less than cooler weather along with strength in the DX. Prices touched an intraday low of $3.341 and closed at $3.351 per mmbtu. On the domestic front, prices fell tracing bearishness in the international prices. Prices touched a low of Rs.192.80/mmbtu and closed at Rs.184.9/mmbtu on Monday.

Outlook

In the intra-day we expect crude oil prices to trade with bearish note as the US law makers are able to agree on a balanced spending cuts and tax increases which could reduce the demand for the crude oil. Strength in the DX is also expected to exert downside pressure on the crude oil prices. In the domestic market appreciation in the rupee is likely to act as a bearish factor for the crude oil prices on MCX.