Commodities

Oil and natural gas daily review (September 18, 2012)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices declined by 2.4 percent in yesterday's trading session taking cues from expiry of the October contract nearing coupled with strength in the DX.

Additionally, US manufacturing data came on a negative note which also added downside pressure on the prices. Crude oil prices touched an intra-day low of $94.65/bbl and closed at $96.60/bbl in yesterday's trade.

On the domestic bourses, prices declined by 1.1 percent on account of appreciation in the Indian Rupee and closed at Rs.5,274/bbl after touching an intra-day low of Rs.5,121/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 increase by 1.0 million barrels for the week ending on 14th September 2012.

Gasoline stocks are expected to rise by 1.5 million barrels and distillate inventories are expected to gain by 1.0 million barrels for the same week.

Outlook

In today's trade, we expect crude oil prices to trade on a bearish note on account of mixed global market sentiments and strength in the DX. In the domestic market appreciation in the Indian Rupee will cause MCX crude oil prices to remain weak in the intraday.