Crude Oil
NYMEX Oil prices traded sideways to flat for most of the last week. The dollar rallied and on evidence that the United States and top oil exporter Saudi Arabia were pumping more than the world needed.
Declining oil rigs in the US is also an indication of slowing down production in the months ahead supporting prices. Geo-political crisis between Saudi Arabia and Yemen is keeping oil markets uncertain with regards to disturbance in supplies.
Besides, inventory withdrawal reported in the Cushing delivery point for U.S. crude futures boosted optimism that a supply glut was easing.
It was the third straight week of declines in inventories, which have seen a huge swell in recent months to the highest levels in at least 80 years.
Fighting in Iraq that raised worries about the security of Middle East oil shipments also boosted the market.
Last week, WTI oil prices in the international markets rose by 0.51 percent and closed at $59.72/bbl. On the MCX, crude prices rose by 0.9 percent and closed at Rs.3813/bbl.
Natural gas
Natural gas prices declined by 3.67 percent to close at $2.91/MMbtu while MCX gas prices declined by around 4.11 percent to close at Rs.184.5/MMbtu.
Outlook
On an intraday basis, we expect oil prices to trade higher as drawdown in crude inventories in the US along with tensions in Iraq will likely boost prices. While on the other hand, strength in the DX will act as a negative factor.
On the MCX, oil prices are expected to trade higher taking cues from Rupee depreciation.
Contributed by Angel Broking