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Commodities Energy

Oil and natural gas daily review (July 24, 2014)

July 24, 2014, Thursday, 06:56 GMT | 01:56 EST | 10:26 IST | 12:56 SGT
Contributed by Angel Broking


Crude Oil

Nymex crude prices rose by 0.3 percent yesterday as oil stockpiles in the United States fell more than expected and geopolitical tensions in Eastern Europe and the Middle East persisted.

In a latest development on the sanctions front, EU Energy Commissioner Guenther Oettinger said yesterday that the European Union should not give Russia technical help to develop Arctic oil and gas fields if Moscow fails to help to defuse the Ukraine crisis. This is surprising given EU officials have always said energy should not be used as a weapon in attempts to solve the crisis over Russia's actions in Ukraine.

On the domestic bourses, prices gained by 0.3 percent in the last session despite Rupee appreciation.

EIA Inventories Data

As per the US Energy Department (EIA) report, US crude oil inventories declined more than expected by 4 million barrels to 371.1 million in the week ended July 18. Gasoline stocks gained by 3.38 million barrels whereas distillate stockpiles rose by 1.64 million barrels for the last week.


Natural Gas

EIA Inventories forecast

The US Energy Department (EIA) is scheduled to release its weekly inventories report today at 8:00pm IST and US Natural gas inventories is expected to gain by 95bcf for the week ending on 18th July, 2014.


Outlook

On an intraday basis, we expect crude oil prices to trade on a positive note today on the back of positive manufacturing data from China. Also, inventories in the US, which is the biggest consumer, have plunged to the lowest level since 2008, has brighten demand outlook and will support gains.

On the MCX, crude prices are expected to trade on a positive note taking cues from strong international markets.

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