ENERGY OUTLOOK : (For Coming Week 25/08/14 - 29/08/14) Crude oil prices may remain on the weaker path as ample global supply & lack of significant disruption in oil supplies from the geopolitical tensions is keeping prices under pressure. But marginal short covering can be seen as prices have dropped sharply in recent weeks. Crude oil prices may trade in the range of 5550-6000 in MCX and $91-99 on NYMEX. The tensions in Ukraine & Iraq may also give further direction to the crude oil prices in the near term. The U.S. Energy Information Administration stated in its weekly report that U.S. crude oil inventories declined by 4.5 million barrels in the week ended Aug. 15, far surpassing expectations for a decline of 1.2 million barrels. Total U.S. crude oil inventories stood at 362.5 million barrels as of last week. The returning oil supply from Libya is flooding a market that is already amply supplied has also kept pressure in the crude prices. There is thus growing pressure on the other OPEC producers to scale back their supply so that the oversupply does not become excessive. Natural gas prices may move in the range of 226-248 in MCX. The U.S. Energy Information Administration stated in its weekly report that natural gas storage in the U.S. in the week ended August 15 rose by 88 billion cubic feet, above expectations for an increase of 83 billion cubic feet. Inventories rose by 58 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 48 billion cubic feet.
Posted on: Sun, 24 Aug 2014 13:46:21 +0000
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