Commodities » Energy

Oil and natural gas daily review (March 19, 2013)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices recovered from its losses and increase by 0.3 percent yesterday taking cues from shutdown in the crude pipeline in Libya after the protests by the fuel truck drivers.

However, sharp upside in the prices was capped on account of weak global market sentiments, concerns for the Euro Zone debt crisis along with strength in the DX. Crude oil prices touched an intra-day high of $93.94/bbl and closed at $93.70/bbl in yesterday's trading session.

On the domestic bourses, prices declined by 0.1 percent and closed at Rs.5,056/bbl after touching an intra-day low of Rs.4,973/bbl on Monday. Depreciation in the Indian Rupee cushioned sharp fall in the prices on the MCX.

API Inventories Forecast

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to rise by 2.0 million barrels for the week ending on 15th March 2013.

Gasoline stocks are expected to decline by 2.5 million barrels and distillate inventories are expected to fall by 1.2 million barrels for the same week.


Outlook

From the intra-day perspective, we expect crude oil to trade higher on the back of upbeat global market sentiments coupled with weakness in the DX. Additionally, shutdown in pipeline in Libya will also support an upside in the prices.

However, sharp upside will be capped on account of rise in the crude output from Saudi Arabia and Iraq, Cyprus bailout issue along with expectations of rise in US crude oil inventories from API.

In the Indian markets, appreciation in the Rupee will cap sharp gains in the prices on the MCX.