Commodities

Oil and natural gas daily review (October 05, 2012)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices gained 4.1 percent on the back of reports of rise in tensions in Middle East yesterday along with weakness in the DX. However rising supplies from the OPEC capped sharp gains. According to Oil Minister Ali al-Naimi OPEC sees no difficulty in meeting the demand restricted gains in the crude oil prices yesterday.

Crude oil prices touched an intra-day high of $91.84/bbl and closed at $91.71/bbl in yesterday's trading session.

On the domestic bourses, prices gained 1.6 percent taking cues from strength in the NYMEX crude oil. However, appreciation in the Indian Rupee capped sharp gains in the MCX crude prices. Crude oil prices closed at Rs.4,721/bbl after touching an intra-day high of Rs.4,737/bbl on Thursday.

Natural Gas

Nymex natural gas prices gained by 0.32 percent on expectation of rise in the demand in the coming months. However rise in the inventories capped sharp gains. NYMEX natural gas prices touched a high of $3.464/mmbtu and closed at $3.410/mmbtu in yesterday's session. In the domestic markets prices gained 0.39 percent and closed at Rs.177.2 mmbtu in yesterday's session.

Outlook

We expect crude oil prices to trade rangebound in today's session taking cues from upbeat global market sentiments along with weakness in the DX. Sufficient supplies of crude oil are however expected to exert downside pressure on the crude oil prices. On the domestic front appreciation in the Indian Rupee will pressurise prices on the MCX.