energy intraday

Major Headline:

· Crude oil on Nymex retreated from intraday high but has continued to trade with modest gains near USD92 per barrel in the electronic trade session Monday extending the 5.3 per cent rise noted in previous two trading sessions following which it settled on Friday at the highest price since Jan 30.

· Venezueala's President, Hugo Chavez, threatened to stop oil sales to the U.S. if ExxonMobil wins its court battle to gain back property that was lost when Chavez took over the oil industry. Recently, a British court ruled in ExxonMobil's favor to freeze $12 billion of Venezuelan assets. March crude oil is steady to lower.

· A fake bomb threat on Sunday led to a halt in production and evacuation of workers at the Safe Scandinavia accommodation rig in North Sea which is operated by Britannia Operators. However reports noted that workers are being returned to the rig.

· However weighing on prices are concerns that global economic slowdown will affect oil demand. The Group of Seven industrial powers (G7) finance officials on Saturday said that the world and G7 economies both have retained solid fundamentals however downside risk to the economies remain.

· Crude oil futures have lately taken cues from equity markets. U.S. stock indices noted mixed closing Friday. Asian stocks markets weakened today while European markets are seen opening lower.

· G7 also asked the Opec and other oil producers to raise production. Opec at its Feb 1 meet decided to keep output steady stating that stockpiles may increase and on concerns that economic slowdown will affect demand. Opec will now meet on March 5 to take stock of the market condition and some have indicated that the oil cartel may cut down production.

· According to Dow Jones newswires report, extremely cold air and gusting winds blasted the U.S.Great Lakes and Northeast early Monday while snow fell over the Midwest, OhioValley and Great Lakes. Also extremely cold air from the Upper Midwest was to keep the Northeast very chilly.

· Temperatures in the Northeast are forecasted to rise only into the 10s, 20s and 30s while the Upper Midwest should struggle to rise above 0 degrees.

· Colder weather increases demand for natural gas leading to larger draw from natural gas stocks. After the record high draw of 274 Bcf for the week ended Jan 25, U.S. working gas stocks noted a bigger than expected decline of 200 Bcf last week following which its surplus over five year average stocks for the period narrowed while deficit from stocks a year ago broadened.

MCX Crude Oil Feb

Technical Outlook:

Momentum studies are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Crude Oil Feb: Buy at 3610-20 for the target of 3660 and 3730 with stop loss at 3565

MCX Natural gas Feb

Technical Outlook:

Momentum studies are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

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