New York: 23:12 || London: 04:12 || Mumbai: 07:42 || Singapore: 10:12

Commodities Energy

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

March 4, 2014, Tuesday, 09:07 GMT | 04:07 EST | 13:37 IST | 16:07 SGT
Contributed by Angel Broking


Crude Oil

Nymex crude oil prices increased around 2.3 percent yesterday on the back of geopolitical tensions between Ukraine and Russia which is the world’s largest energy exporter. Further, favorable economic data from the US supported an upside in the prices.

Even strength in the DX failed to add downside pressure to the prices. Additionally, unfavorable manufacturing data from China lead to increase in concerns over the demand for the commodity but couldn’t exert downside pressure to the prices. Crude oil prices touched an intra-day high of $105.22/bbl and closed at $104.90/bbl in yesterday’s trading session.

In the Indian markets, prices rose by 2.2 percent yesterday due to Rupee depreciation and closed at Rs.6508/bbl after touching an intra-day high of Rs.6549/bbl on Monday.

API Inventories Forecast

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to gain by 1.0 million barrels for the week ending on 28th February 2014.

Gasoline stocks are expected to decline by 1.0 million barrels and distillate inventories are expected to plunge by 1.1 million barrels for the same week.


Outlook

From the intra-day perspective, we expect crude oil prices to trade on a mixed note on the back of geopolitical tension between Ukraine and Russia which is the world’s largest energy exporter will support an upside in the prices. Further, expectations of decline in distillate and gasoline demand from API in today’s trade will act as a positive factor. While on the other hand, weak market sentiments coupled with strength in the DX will cap sharp gains or exert downside pressure on the prices. Additionally, forecast for unfavorable economic data from Euro Zone and the UK will act as a negative factor.

In the Indian markets, Rupee depreciation will support an upside in the prices.