energy intraday

Energy
30 May 2008 11:01:52

Energy May 30 2008

Major Headlines:

Crude oil fell more than $6 a barrel after the Energy Department said the biggest drop in U.S. oil inventories in more than three years was caused by ``temporary delays'' in unloading oil tankers on the Gulf Coast, Supplies declined 8.88 million barrels to 311.6 million last week, the biggest drop since Sept. 17, 2004, when Hurricane Ivan forced the closing of U.S. oil platforms in the Gulf of Mexico.

Crude prices have doubled over the past year due to long-term concerns that rising demand from the developing world could outstrip production increases, leading to a tighter market for oil, Worries about falling gasoline demand in the U.S. and a strengthening U.S. dollar also helped push down prices.

News of Supply disruptions in Nigeria, one of Africa's largest producers and a major U.S. supplier, has helped push oil prices higher over the past year. That contended Wednesday with the growing belief that U.S. demand for gasoline is falling as the average retail pump prices approaches $4 a gallon ($1.05 per liter). That belief was supported by two new surveys showing Americans consuming less gasoline

Nigeria's crude oil revenue fell 16 percent last year from the level in 2006 as sabotage by militants in the Niger Delta region hurt production, and the production in the west African country has fallen 20 percent since early 2006 when the militant group Movement for the Emancipation of the Niger Delta, or MEND, began sabotaging the oil industry in an effort to gain political power and oil wealth for the impoverished area.

Natural gas futures fell after a U.S.government report showed inventories last week increased and The five-year average inventory increase for the week is 92 billion cubic feet,

Gas flow on the Independence Trail pipeline operated by Enterprise Products Partners LP in the Gulf of Mexico, shut April 9, may not resume service until June, a month later than planned, the company said May 14. At full production, the link accounts for 2 percent of U.S. gas supplies and 10 percent of Gulf deliveries,

MCX Crude Oil June - Technical Outlook:

The daily stochastic have crossed over down which is a bearish indication. The stochastic indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Market is expected to remain negative and the support is seen at 5285 if market breaches below 5285 may see prices to take further correction towards 5171 and 4969 However if it holds back above 5601 may see prices to rise further on today. Major resistance is seen at 5803 and 5917

Recommendations-MCX Crude Oil June: Sell at 5480 Target 5410 and 5340 Stoploss 5530

MCX Natural gas June - Technical Outlook:

The daily stochastic have crossed over down which is a bearish indication. The stochastic indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Market is expected to remain negative and the resistance is seen at 509.00 levels. If market breaches 509.00 may see prices to take further upside towards 524.00 and 532.00 However if it holds back below 486.00 may see prices to fall further on today. Major support is seen at 478.00 and 463.00


Recommendations-MCX Natural Gas June: Sell at 499 Target 494 and 490 Stop loss at 503.50

MCXARUN
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