Commodities

Oil and natural gas daily review (September 11, 2012)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices swung between gains and losses but gained marginally around 0.1 percent in the yesterday trading session taking cues from expectations of stimulus measures from US and China.

However, sharp upside in the prices was capped on the back of speculation of slowdown in the crude oil as prices are trading very high coupled with strength in the DX.

Crude oil prices touched a high of $96.63/bbl and closed at $96.50/bbl in the yesterday's trading session. On the domestic bourses, prices increased by 0.63 percent on the back of depreciation in the Indian Rupee and closed at Rs.5,324/bbl after touching a high of Rs 5,354./bbl on Monday.

API Inventories Forecast

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to decline by 2.1 million barrels for the week ending on 7th September 2012.

Gasoline stocks are expected to fall by 1.9 million barrels and distillate inventories are expected to drop by 0.9 million barrels for the same week.

Outlook

In today's trade, we expect crude oil prices to trade on a sideways note on the back of expectations of stimulus measures from US and China along with expectations of decline in US crude oil inventories. While on the other hand, expectations that Euro Zone policymakers will not be able to solve Euro region debt crisis coupled with stronger DX will add downside pressure on the prices. Depreciation in the Indian Rupee will support upside on the crude oil prices on the MCX.