Commodities

Oil and natural gas daily review (October 03, 2012)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices declined around 0.6 percent yesterday taking cues from rise in US crude oil inventories consecutively for the fourth week in a row.

However, sharp downside in the prices was cushioned on the back of weakness in the DX. Crude oil prices touched an intra-day low of $91.62/bbl and closed at $91.90/bbl in yesterday's trading session.

MCX crude prices declined by 0.5 percent on account of appreciation in the Indian Rupee and closed at Rs.4,860/bbl after touching an intraday low of Rs4,841./bbl on Monday.

API Inventories Data

As per the American Petroleum Institute (API) report last night, US crude oil inventories increased by 462,000 barrels to 362.92 million barrels for the week ending on 28th September 2012.

Gasoline inventories declined around 59,000 barrels to 197.86 million barrels and whereas distillate inventories dropped by 321,000 million barrels to 126.98 million barrels for the same week.

EIA Inventories Forecast

The US Energy Department (EIA) is scheduled to release its weekly inventories report today at 8:00pm IST and US crude oil inventories is expected to rise by 1.5 million barrels for the week ending on 28th September 2012.

Gasoline stocks are expected to fall by 0.6 million barrels whereas distillate inventories are expected to drop by 0.4 million barrels for the same period.

Outlook

In today's session, we expect crude oil prices to remain bearish on the back of expectation of rise in the crude oil inventories along with mixed global market sentiments. Mixed movement in the DX is also expected to exert downside pressure on the crude oil pressure. On the domestic front appreciation in the Indian Rupee will pressurise prices on the MCX.