Commodities

Oil and natural gas daily review (September 07, 2012)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices increased around 0.2 percent yesterday taking cues from ECB President Mario Draghi statement on agreement for unlimited bond buying from the Euro Zone policymakers to curtail its debt crisis. Additionally, more than expected decline in US crude oil inventories along with weakness in the DX also supported an upside in the prices.

Crude oil prices touched an intra-day high of $97.71/bbl and closed at $95.50/bbl in yesterday's trading session. On the domestic bourses, prices gained by 0.2 percent and closed at Rs.5,339/bbl on Thursday.

EIA Inventories Data

As per the US Energy Department (EIA) report last night, US crude oil inventories declined more than expected by 7.4 million barrels to

357.10 million barrels for the week ending on 31st August 2012. Gasoline stocks fell by 2.3 million barrels to 198.90 million barrels and whereas distillate stockpiles gained by 993,000 barrels to 127.10 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 as expected by 28 billion cubic feet (bcf) which stood at 3.402 trillion cubic feet for the week ending on 31st August 2012.

Outlook

In today's trade, we expect crude oil prices to trade on a sideways bias due to upbeat global market sentiments, more than expected decline in US crude oil inventories along with weakness in the DX. While on the other hand, expectations that crude oil prices are trading at a very high price and will lead to slowdown can add downside pressure on the crude oil prices.