• Oil and natural gas daily review (September 07, 2015)

    Crude Oil

    Last week, WTI oil prices traded higher as tracking gains in Wall Street equities despite a weekly build in U.S. crude inventories that weighed on the outlook for oil.

    However, weak Chinese data extended a roller-coaster run that knocked oil to its lowest in 6-1/2 years last week before frenzied short-covering fueled a 25 percent three-session surge.

    Downward revision of U.S. crude production data and OPEC's readiness to talk with other producers helped extend the biggest three-day price surge in 25 years at the start of the last week.

    Series of relatively small-scale supply disruptions and output risks prompted bearish traders to take profits on short positions, which had been near a record a week ago in turn acting as a positive factor for oil prices.

    WTI crude oil prices rose by 1.8 percent to close at $46.1 per barrel.

    On the MCX, oil prices rose by 3.5 percent to close at Rs.3110 per barrel.


    On an intraday basis, we expect oil prices to trade lower as inventory buildup in the US continues to create bearish sentiment while ECB boost to print more money will act as a positive factor for commodities including crude oil.

    On the MCX, oil prices are expected to trade lower today.

    Contributed by Angel Broking
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