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Commodities Energy

Oil and natural gas daily review (March 20, 2014)

March 20, 2014, Thursday, 06:35 GMT | 01:35 EST | 11:05 IST | 13:35 SGT
Contributed by Angel Broking


Crude Oil

Worries over sanctions affection oil supplies from Russia eased down pressurizing Brent prices, while WTI gained by 0.7 percent in yesterday's trade on drawdown of crude inventories at Cushing. Besides, the operator of the seaway pipeline said that crude from Cushing to the gulf coast would be ready to double the shipments as soon as late may also acted as a positive factor.

Domestic markets took cues from the gains in international markets as crude prices on the MCX gained by 0.5 percent and closed at Rs.6109/bbl on Tuesday.

EIA Inventories update

The US Energy Department (EIA) released its weekly inventories report yesterday at 8:00pm IST and US crude oil inventories gained by nearly 6 million barrels for the week ending on 14th March 2014.

Gasoline stocks are fell by 1.5 million barrels whereas distillate inventories to plunge by 3.1 million barrels for the same period.


Natural Gas

EIA Inventories Forecast

The US Energy Department (EIA) released its weekly natural gas inventories report tonight at 8:00pm IST and inventories are expected to show a buildup for the week ending 14th March 2014.


Outlook

From intraday perspective, crude prices will trade higher on the back of positive sentiments with regards to the growth in the US economy. Also expectations of inventory to be drained at Cushing in the coming weeks also act as a supportive factor. In addition, the tensions between US and Russia have increased as United States warned Moscow that it was on a "dark path" to isolation as Russian troops seized two Ukrainian naval bases, including a headquarters in the Crimean port of Sevastopol where they raised their flag.

In the Indian markets, prices will trade stronger mixed on account of the rupee weakness and further developments in the Crimean region.