energy intraday

Energy




Oil prices continued their gains despite a weekly survey by theU.S. government showing that the country's crude stocks rose by 5.7 million barrels to 325.6 million barrels for the week ended May

Prices have also been buoyed by ongoing violence in Nigeria, Africa's largest producer, Attacks have cut Nigeria's oil production by about a quarter over the past two years. Angst over oil prices has also been stirred by continuing diplomatic tension over Iran's nuclear ambitions, which Tehran says are peaceful. Iran is OPEC's second-largest producer



Iran's oil minister has predicted the price of oil will rise to $200 a barrel in the near future, the official IRNA news agency reports



Booming demand from developing nations like China and India has raised fears global oil production may be unable to keep up, leading to a potential shortfall of supplies. “If China and India were to increase their consumption per person to current U.S. levels, these two countries alone would require 160 million barrels per day, more than twice the world's supply of oil today

OPEC, the producer of more than 40 percent of the world's oil, said turmoil in equity markets and a weaker dollar have encouraged investors to buy crude oil, driving prices to a record.

`There is clearly no shortage of oil in the market,'Abdalla el-Badri, the secretary general of the 13-member Organization of Petroleum Exporting Countries, The turmoil in some global equity markets and the considerable depreciation in the U.S. dollar have encouraged investors to seek better returns in commodities.

OPEC pumped 32.1 million barrels of crude a day in April, according to Bloomberg estimates, and kept its production targets unchanged at its last three meetings on March 5, Feb. 1 and Dec. 5.Its next scheduled policy-setting conference is on Sept. 9.

OPEC said by keeping output steady after the end of the winter season in the northern hemisphere, it allowed crude oil inventories in the U.S. to rise, adding 6 million barrels last week.

At the same time, crude oil movements indicate that some member countries are unable to find buyers for their additional supply, OPEC said.

Natural gas futures remained flat Thursday after U.S.government data showed a build inU.S. gas inventories in line with market forecasts.

Natural gas futures have risen all week, tracking record-breaking increases in crude oil prices amid a lack of significant weather-related news. Crude oil futures were down slightly early Thursday, but still hovering near record highs, with the market taking a breather after four days of big gains.



MCX Crude Oil May

Technical Outlook:The daily stochastic have crossed over up which is a bullish indication. The stochastic 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 EMA. The downside closing price reversal on the daily chart is somewhat negative

Market is expected to remain positive and the resistance is seen at 5171 levels. If market breaches 5171 may see prices to take further upside towards 5216 and 5267 however if it holds back below 5075 may see prices to fall further on today. Major support is seen at 5024and 4979

Recommendations-MCX Crude Oil May: Buy at 5065 Target 5130 and 5195 Stop loss 5015



MCX Natural gas May

Technical Outlook:The daily stochastic have crossed over up which is a bullish indication. The stochastic 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 EMA. The downside closing price reversal on the daily chart is somewhat negative

Market is expected to remain positive and the resistance is seen at 475.50 levels. If market breaches475.50 may see prices to take further upside towards 479.10 and 483.20however if it holds back below 467.80 may see prices to fall further on today. Major support is seen at 463.70 and 460.10

Recommendations-MCX Natural Gas May: Buy at 467 Target 472and 480 Stop loss at 463


MCXARUN
9994500540