Commodities

Oil and natural gas daily review (September 13, 2012)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices declined around 0.2 percent yesterday taking cues from unexpected rise in US crude oil inventories. However, weakness in the DX cushioned sharp fall in the prices.

However, expectations of stimulus measures from US also restricted sharp downside in the prices. Crude oil prices touched an intra-day low of $96.31/bbl and closed at $97.0/bbl in yesterday's trading session.

On the domestic bourses, prices declined by 0.1 percent on account of appreciation in the Indian Rupee and closed at Rs.5,353/bbl after touching an intra-day low of Rs.5,330/bbl on Wednesday.

EIA Inventories Data

As per the US Energy Department (EIA) report last night, US crude oil inventories increased unexpectedly by 0.2 million barrels to 359.0 million barrels for the week ending on 7th September 2012.

Gasoline stocks fell by 4.2 million barrels to 197.70 million barrels and whereas distillate stockpiles gained by 2.5 million barrels to 128.90 million barrels for the last week.

Natural Gas

EIA Inventories Forecast

US Energy Information Administration (EIA) is scheduled to release its weekly inventories and US natural gas inventory are expected to increase by 26 billion cubic feet (bcf) for the week ending on 7th September 2012.

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 along with weakness in the DX. While on the other hand, unexpected rise in US crude oil inventories yesterday will add downside pressure on the prices. Appreciation in the Indian Rupee will add downside pressure in the crude oil prices on the MCX.