• Oil and natural gas daily review (September 28, 2015)

    Crude Oil

    WTI oil prices gained by 2.28 percent and Brent surged by more than 2.38 percent after bullish impact from lower crude inventories was offset by large gasoline builds that raised concerns about high autumn fuel supplies.

    Also weighing on crude were Colonial Pipeline's efforts to fix an outage on one of its lines that had been supporting prices of gasoline, and the larger oil complex, since Tuesday.

    Colonial Pipeline indicated that a possible leak caused it to shut part of its operation, including a line with capacity to carry 850,000 barrels of gasoline and distillates from North Carolina to its New Jersey hub. However, crude prices did not react much to the news.

    Cushing stocks fell nearly 2 million barrels in the week to Sept. 11, the biggest draw since February 2014, U.S. government data showed.

    Energy consultancy Wood Mackenzie estimated that $1.5 trillion of "uncommitted spending on new conventional projects and North American unconventional oil" was uneconomic at even $50 a barrel.

    On the MCX, oil prices traded lower by 2.09 percent to close at Rs.3031 per barrel.


    The crude market remains oversupplied from OPEC as well as NON OPEC nations although the crude inventories in the US declined as per the report from the EIA released last night.

    On the MCX, oil prices are expected to trade lower today as international markets are trading lower by around 1 percent.

    Contributed by Angel Broking
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