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Commodities

Oil and natural gas daily review (January 03, 2013)

January 3, 2013, Thursday, 07:28 GMT | 02:28 EST | 12:58 IST | 15:28 SGT
Contributed by Angel Broking


Crude Oil

Nymex crude oil prices increased around 1.4 percent taking cues from US lawmakers able to pass a bill to avoid rise in taxes and cut spending which could have affected demand for the fuel.

Additionally, weakness in the DX also supported an upside in the crude oil prices. Crude prices touched an intra-day high of $93.87/bbl and closed at $92.99/bbl in yesterday's trading session.

On the domestic bourses, prices gained around 0.4 percent and closed at Rs.5,049/bbl after touching an intra-day high of Rs.5,096/bbl on Wednesday. However, appreciation in the Indian Rupee capped sharp gains in the prices.


API Inventories Forecast

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to decline by 0.6 million barrels for the week ending on 28th December 2012. Gasoline stocks are expected to rise by 2.0 million barrels and distillate inventories are expected to gain by 1.5 million barrels for the same week.


Outlook

In the intra-day we expect crude oil prices to trade with firm note as favorable data from the US and China is indicating that economies are on the path of recovery. This is expected to increase the demand for the crude oil. However, strength in the DX is expected to restrict gains in 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.