Crude Oil
Nymex crude oil prices surged by 2.8 percent on Tuesday to close at $39.3 per barrel and rebounding from 6-1/2-year lows as the People’s Bank of China cut interest rates and banks’ reserve requirement, easing some concerns about the slowdown in the world’s second-largest economy and major consumer of oil. Also, favorable consumer confidence data from the US supported gains.
Further, API data showed Weekly crude stocks fell by more than expected 2.3 million barrels.
However, sharp gains were capped as the oil market has been reeling from massive oversupply caused by continued production by OPEC member nations like Saudi Arabia.
On the MCX, oil prices declined by 1.2 percent to close at Rs.2607 per barrel.
Natural gas
NYMEX natural gas prices gained by 1.4 percent on Tuesday to close at $2.69 per MMbtu while MCX gas prices plunged by 1.6 percent to close at Rs.175.9 per MMbtu owing to Rupee appreciation. Warm weather is acting as a negative factor on the demand side.
Outlook
On an intraday basis, we expect oil prices to trade lower as investor keenly await EIA report on stocks after favorable API data. Also, supply glut concerns will continue to bother prices.
On the MCX, oil prices are expected to trade sideways today.
Contributed by Angel Broking
Sections
Categories