energy intraday

Energy
15 May 2008 09:52:56

Major Headlines:

Crude oil fell more than $1 a barrel after an Energy Department report showed that U.S. supplies of distillate fuels, including diesel, raised more than forecast.



Nigeria, Africa's biggest oil producer, is scheduled to increase daily crude exports by 12 percent in June as companies including Royal Dutch Shell Plc and Exxon Mobil Corp. resume production after militant attacks, it pumped 2.46 million barrels a day of oil in 2006, according to BP Plc's Statistical Review of World Energy.



OPEC will have to cut output of lower-quality grades because of weak demand, Iran's OPEC governor said, Iran is holding 20 million barrels of crude oil on tankers, about five days of production, people familiar with the situation said last week. Iran’s oil includes some of the heaviest and most sulfurous grades sold, making them less desired by refiners



Russia, the world's biggest oil producer after Saudi Arabia, may increase crude production by 67 million tons a year, or 1.3 million barrels a day, by 2015, Prime Minister Vladimir Putin said yesterday



U.S. fuel consumption fell 2.4 percent in the first four months of 2008 compared with the same period a year earlier, the American Petroleum Institute said, Consumers are reacting to higher prices by reducing demand for gasoline and other fuels



OPEC, which supplies more than 40 percent of the world's oil, refrained from officially raising or lowering oil output targets at its past three meetings on March 5, Feb. 1 and Dec.5, saying supply was adequate. OPEC oil ministers have so far been adamant there is no need for any change in official policy before the next scheduled gathering in Vienna on Sept. 9.



U.S. natural gas rose to the highest since December 2005 after Enterprise Products Partners LP delayed resumption of a pipeline.



Natural gas in New York has gained about 21 percent since Independence ceased shipments to the U.S. mainland on April 9 because of the reduced output and higher crude oil prices. Crude has risen 16 percent since the Independence outage. The delay at Independence combined with record prices for crude and heating oil will likely keep gas moving higher


MCX Crude Oil June

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 5293 levels. If market breaches 5293 may see prices to take further upside towards 5357 and 5393 however if it holds back below 5193 may see prices to fall further on today. Major support is seen at 5157and 5093

Recommendations-MCX Crude Oil June: Buy at 5190 Target 5250 and 5315 Stop loss 5145



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 491.00 levels. If market breaches 491.00 may see prices to take further upside towards 498.00 and 507.50 however if it holds back below 474.50 may see prices to fall further on today. Major support is seen at 465.00 and 458.00

Recommendations-MCX Natural Gas May: Buy at 491 Target 496 and 501 Stop loss at 487

MCXARUN
9994500540