On a weekly basis, Nymex crude oil prices declined 0.2 percent, taking cues from decline in gasoline consumption in the US which fell to its lowest level in 10 years.
Another factor that added to downside pressure on prices was the refusal by American President Barack Obama over the permit for TransCanada Corp’s Keystone Pipeline coupled with the European Union delaying a ban on Iranian crude oil imports.
But sharp downside in crude oil prices was protected on account of a weaker dollar and decline in crude oil inventories. In the last week, crude oil prices on the Nymex touched a low of $97.91/bbl and closed at $98.5 on Friday.
On the MCX, prices declined by 1.5 percent, indicating that losses in the domestic markets was more than that in the international platform on account of Rupee appreciation. Oil prices touched a low of Rs.4963/bbl during the week and closed at Rs.5006/bbl on Friday.
Natural Gas
Nymex natural gas declined by more than 10 percent on a weekly basis on the back of expectations of mild winter weather conditions coupled with less than expected decline in inventories.
Gas prices touched a low of $ 2.28/mmbtu during the week and closed at $ 2.34/mmbtu on Friday. On the MCX, prices declined around 15 percent and closed at Rs.117.7/mmbtu on Friday.
Outlook
Downside pressure in case of crude oil is expected on account of a delay on a ban in Iranian imports, dollar strength and mixed global market sentiments today.
Courtesy: Angel Commodities
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