Commodities

Oil and natural gas daily review (January 09, 2013)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices increased around 0.1 percent yesterday taking cues from expectations of rise in demand for the fuel from the US. Additionally, Iran's crude oil exports declined by 40 percent on account of sanctions from the US also supported an upside in the prices.

Apart from that weakness in the DX also acted as a positive factor for the crude prices. Oil prices touched an intra-day high of $93.35/bbl and closed at $93.26/bbl in yesterday's trading session.

On the domestic bourses, prices gained by 0.7 percent as a result of depreciation in the Indian Rupee and closed at Rs.5,149/bbl after touching an intra-day high of Rs.5,156/bbl on Monday.

API Inventories

The American Petroleum Institute (API) Crude stockpiles increased by 2.4 million barrels in the week ended Jan. 4, 2013 as compared to the expectations for a 1.5 million barrel. US Gasoline stocks expanded by 7.9 million barrels in the week, compared with expectations for a 2.3 million barrel build. Distillate fuels, increased 5.9 million barrels, compared with expectations for a 2 million barrel rise.

Outlook

In the intra-day we expect crude oil prices to trade with bearish note due to strength in the DX along with rise in the crude oil inventories. However, favorable data from the major consuming nations is expected to cushion fall in the crude oil prices. In the domestic markets, appreciation in the rupee is expected to exert downside pressure in MCX Crude oil prices.