Commodities

Oil and natural gas daily review (November 02, 2012)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices gained by 1 percent yesterday taking cues from unexpected decline in US crude oil inventories coupled with upbeat global market sentiments.

However, sharp upside in the prices was capped a result of strength in the DX. Crude oil prices touched an intra-day high of $87.42/bbl and closed at $87.10/bbl in yesterday's trading session.

On the domestic bourses, prices increased by 0.7 percent and closed at Rs.4,697/bbl after touching an intra-day high of Rs.4,712/bbl on Thursday. However, sharp upside movement in the prices was capped on account of appreciation in the Indian Rupee.

EIA Inventories Data

As per the US Energy Department (EIA) report last night, US crude oil inventories declined unexpectedly by 2.04 million barrels to 373.10 million barrels for the week ending on 26th October 2012. Gasoline stocks rose by 0.93 million barrels to 199.50 million barrels and whereas distillate stockpiles drop by 935,000 barrels to 117.9 million barrels for the last week.

Natural Gas

EIA Inventories Data

US Energy Information Administration (EIA) released its weekly inventories yesterday and US natural gas inventory has increased less than expected by 65 billion cubic feet (bcf) which stood at 3.908 trillion cubic feet for the week ending on 26th October 2012.

Outlook

In the intra-day, we expect crude oil prices to trade on a negative bias on the mixed global market sentiments along with strength in the DX. However, unexpected decline in the crude oil inventories are expected to cushion sharp fall in the prices. In the domestic markets appreciation in the Indian rupee is expected to exert downside pressure in the MCX crude oil prices.