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Commodities Energy

Oil and natural gas daily review (July 04, 2014)

July 4, 2014, Friday, 10:18 GMT | 05:18 EST | 13:48 IST | 16:18 SGT
Contributed by Angel Broking


Crude Oil

Oil prices declined on both sides of the Atlantic as supply fears began to ease after Libya declared an end to an oil crisis that has slashed exports from the OPEC member. Libya's government said it had reached a deal with a rebel leader controlling oil ports involving the handover of the last two terminals, potentially making an extra 500,000 barrels per day (bpd) of crude available for export. U.S. crude has fallen in 10 out of the last 13 sessions and posted a second straight weekly drop. It fell by 1.6 percent in the week to Thursday, and a combined 3 percent in the past two weeks.

On the MCX, crude prices declined by 0.4 percent and closed at Rs.6210/bbl.


Natural gas

U.S. natural gas futures ended up 1 percent on Thursday after the government reported a big storage build that matched but did not exceed expectations. Utilities added 100 billion cubic feet of gas into storage last week, in a record eighth-consecutive triple-digit injection.


Outlook

On an intraday basis, we expect crude oil prices to trade lower on profit booking at higher levels and no supply disturbance coming out of Iraq or Libya. Besides, the geo-political tensions has also eased down a bit leading to correction in oil prices as oil market realizes that further direction would be decided by the non-farm payrolls data and host of data sets to be released from the US.

On the MCX, crude oil prices are expected to trade on a lower note in line with weakness in international markets.

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