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Commodities Energy

Oil and natural gas daily review (May 16, 2014)

May 16, 2014, Friday, 05:40 GMT | 00:40 EST | 09:10 IST | 11:40 SGT
Contributed by Angel Broking


Crude Oil

WTI crude oil prices declined in yesterday’s trading session by 0.8 percent on widening supplies in the US wherein the latest EIA report showed that inventories gained by 0.947 million barrels to 398.5 million.

Also, OPEC-member Libya's output was at 300,000 barrels per day (bpd) with the El Feel field at full capacity and Wafa field back at work after protests ended However, concerns about the crisis in Ukraine and a tightening global oil market continued to support oil futures.

On the MCX, crude prices declined by around 0.9 percent on rupee appreciation and closed at Rs.6037/bbl.


Natural gas

NYMEX natural gas prices rallied by more than 2 percent in yesterday’s trading session after the EIA reported that utilities injected a little less gas into storage than expected.

Utilities put 97 billion cubic feet of gas into storage last week, slightly below a Reuters poll of analysts calling for a build of 99 bcf and also below the year-ago 98 bcf build, but more than the five-year average build of 82 bcf.

On the MCX, NG prices gained by 3 percent and closed at Rs.267/MMbtu.


Outlook

On an intraday basis, crude prices are expected to trade on a mix note as inventories in the US are closed to the record highs, whereas escalating tensions in Ukraine and Russia will cushion fall in prices.

Also, hopes of Libyan supplies resuming soon can flood energy markets with extra supplies can exert downside pressure on prices.

On the MCX, crude prices are expected to trade on a mix note taking cues from international markets.