Crude trading range for the day is 5060-5086. Technically market is getting support at 5066 and below could see a test of 5060 level, And resistance is likely to be seen at 5079, a move above could see prices testing 5086. Some forecast models predicted the storm to intensify to a hurricane in the Caribbean Sea but closer to the oil-rich Gulf of Mexico in the coming days, which further pressured prices higher, as approaching storms affect offshore oil drilling.
Crude oil soared last week on news the US economy added far more jobs in July than expected, fueling sentiment the economy will need more fuels and energy to grow.
Nymex crude oil prices gained by 1.4 percent during the week taking cues from more than expected decline in US crude oil inventories coupled with expectations of tropical storm in Gulf of Mexico. Additionally, weakness in the DX along with upbeat global market sentiments also supported upside in the prices.
Crude oil prices touched a high of $91.74/bbl and closed at $91.40/bbl in the last trading session of the week. On the domestic bourses, prices gained by 1.3 percent and closed at Rs.5,071/bbl on Friday after touching a high of Rs5,090./bbl in the last week.
Total gasoline stocks fell by 2.17mbls, the EIA added. Meanwhile, the ISM's service-sector index outpaced expectations last month as well. Investors also kept an eye on the Caribbean Sea, where Tropical Storm Ernesto continued to churn early Friday.
Natural Gas falls drastically in MCX, EU worries to blame
Natural gas settled flat after dropping Friday amid worries over rising inventories as the strong summer demand season wanes. The Energy Information Administration said that Natural gas in storage grew by 28 billion cubic feet to 3.217 trillion cubic feet for the week ended July 27.
Total Natural gas inventories are now 14.5% above the five-year average of 2.810 trillion cubic feet for this week and 17.2% above last year’s level of 2.745 trillion cubic feet, according to the government data.
On a weekly basis, Nymex Natural gas inventories. However, a weaker DX restricted sharp fall in the prices.
Gas prices touched a low of $2.84/mmbtu during the week and closed at $2.89/mmbtu in the last trading day of the week. On the domestic front, prices decline by 3.6 percent and closed at Rs.161.6/mmbtu after touching a low of $160.1/mmbtu On Friday.
Prices had climbed to the highest levels of the year earlier in the week, as forecasts for higher-than-average temperatures across much of the U.S. boosted the outlook for increased gas-powered electricity consumption.