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Commodities Energy

Oil and natural gas daily review (March 31, 2014)

March 31, 2014, Monday, 05:57 GMT | 01:57 EST | 10:27 IST | 12:57 SGT
Contributed by Angel Broking

Crude Oil

Nymex crude oil prices started the week on a positive note moved in a band of $3 for the last week. Prices rallied last week on comments from President Barack Obama threatened broad penalties against sectors of Russia's economy if Moscow moves deeper into Ukraine.

In addition, the economic data released from the US were supportive to crude prices. The number of Americans filing for jobless benefits hovered near three-month lows last week and factory activity in the Mid-Atlantic region rebounded this month.

Also, U.S. consumers stepped up spending a bit in February as incomes increased for a second straight month, offering hope the economy was regaining its footing after being slammed by an unusually cold winter.WTI Crude oil prices touched a high of $102.24/bbl and closed at $101.67/bbl last week.

On the domestic bourses, prices gained marginally by 0.5 percent in the last week and closed at Rs.6115/bbl on Friday after touching a weekly low of Rs.5994/bbl.

Natural Gas

US natural gas closed up by around 3.94 percent after the government data released reported a slightly bigger than expected withdrawal of inventories from storage.

Natural Gas inventory update

The US Energy Department (EIA) released its weekly inventories report last night showed that natural gas inventories declined by 57 bcf which is 90 bcf below a year earlier and well above five year average of 7 Bcf.


Positive economic momentum in the US has raises prospects of growth in turn hopes of high demand for energy. In addition the sanctions imposed by the US on Russia may cause disruptions of supplies in crude markets. U.S. crude, will continued its upward trend following Wednesday's data that showed a further drain in oil inventories at the Cushing, which hit their lowest level since January 2012. In addition, Low supply out of Libya and Nigeria lent further support to Brent crude prices.

On the MCX, prices will trade positive tracking cues from international markets and the escalation of geo-political tensions.