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Commodities Energy

Oil and natural gas daily review (June 05, 2014)

June 5, 2014, Thursday, 06:15 GMT | 01:15 EST | 10:45 IST | 13:15 SGT
Contributed by Angel Broking


Crude Oil

Brent oil prices slipped to a three week low at $108 while WTI oil prices traded flat in yesterday’s session on ample supply in the US and ease of tensions in Ukraine. Ukraine's President-elect and western leaders are working on a peace plan to end violence in the east of the country.

Although the inventories report released yesterday showed a drawdown, the stocks remain near the top of the typical range for this time of year. Also, the United States will also release key employment data on Friday that may reinforce a recovery trend at the world's largest economy.

On the MCX crude prices gained marginally by 0.1 percent and closed at Rs.6101/bbl.

EIA inventory update

The EIA released its weekly inventories report last night at 8:00pm IST and US crude oil inventories fell by 3.4 million barrels for the week ending on 30th May 2014. Gasoline stocks rose by 0.21 million barrels whereas distillate inventories rose by 2 million barrels for the same time period.


Natural Gas

The EIA is scheduled to release its natural gas inventory report tonight at 8pm and it is expected to show a surplus of 116 Bcf


Outlook

On an intraday basis, we expect crude prices to trade on a positive note as the inventory withdrawal in the US indicates growing demand. On the other hand, ease of geo-political tensions will act as a negative factor for prices. Meanwhile, the NFP report due this week will be crucial for further trajectory in crude prices.

On the MCX, crude price is expected to trade positive taking leads from the international markets.

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