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Commodities

Oil and natural gas daily review (January 18, 2013)

January 18, 2013, Friday, 05:02 GMT | 00:02 EST | 09:32 IST | 12:02 SGT
Contributed by Angel Broking


Crude Oil

Nymex crude oil prices rose by 1.3 percent taking cues from favorable economic data from the US along with expectations of rise in demand for the fuel.

Additionally, weakness in the DX also supported an upside in the prices. Crude oil prices touched an intra-day high of $96.04/bbl and closed at $95.50/bbl in yesterday's trading session.

On the domestic bourses, prices gained by 0.6 percent and closed at Rs.5,181/bbl after touching an intra-day high of Rs.5,188/bbl on Thursday. However, appreciation in the Indian Rupee capped sharp gains in the prices on the MCX.


Natural Gas

Nymex natural gas prices gained by 1.7 percent yesterday on the back of more than expected decline in US natural gas inventories. Additionally, weakness in the DX also acted as a positive factor for the prices. Gas prices touched an intra-day high of $/mmbtu and closed at $3.494/mmbtu on Thursday.

In the Indian markets prices gained by more than 2 percent and closed at Rs.190.50/mmbtu after touching an intra-day high of Rs./mmbtu in yesterday's trading session.


EIA Inventories Data

US Energy Information Administration (EIA) released its weekly inventories yesterday and US natural gas inventory declined more than expected by 148 billion cubic feet (bcf) which stood at 3.168 trillion cubic feet for the week ending on 11th January 2012.


Outlook

In the intra-day, we expect crude oil prices to trade higher on the back of favorable economic data from US and Chinese economies which led to increase in expectation of rise in demand for the fuel along with weakness in the DX. Appreciation in the Indian Rupee will cap sharp gains in prices on the MCX.