Commodities » Energy

Oil and natural gas daily review (March 04, 2013)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices declined around 2.6 in the last week taking cues from less than forecasted rise in the US GDP data leading to expectations of decline in demand for fuel. Additionally, negative statement from International Monetary Fund (IMF) spokesman William Murray that it will lower the growth forecast for US as a result of appropriation coupled with strength in the DX.

Further, less than expected rise in the US crude oil inventories cushioned sharp fall in the prices. Crude oil prices touched a weekly low of $90.04/bbl and closed at $90.68/bbl in yesterday's trading session.

On the domestic bourses, prices fell by 1.2 percent and closed at Rs.5,010/bbl on Friday after touching a low of Rs.4,986/bbl in the last week. Depreciation in the Indian Rupee cushioned sharp fall in the prices on the MCX.


Natural Gas

Nymex natural gas prices rose by more than 5 percent on the back of more than expected decline in the US natural gas inventories.

However, sharp upside in the prices was capped on account of forecast for less cool winter weather coupled with strength in the DX. Gas prices touched a weekly high of $3.554/mmbtu and closed at $3.457/mmbtu in the last trading session of the week.

On the domestic front, prices gained by 8.9 percent on the back of depreciation of Indian Rupee and closed at Rs.192.20/mmbtu on Friday after touching a high of Rs.194.50/mmbtu in the last week.


Outlook

In today's session, we expect crude oil prices to trade with negative bias due to weak global market sentiments along with strength in the DX. Whereas, Expectation of positive Spanish Unemployment change data may cushion the sharp downfall in prices. In the Indian markets, depreciation in the Rupee will cushion sharp fall in the prices on the MCX.