energy intrday

Energy

Major Headlines:

Heating oil futures rose to a record inNew York after a report showed declining world inventories, Gasoline futures also advanced to an all-time high, following gains in other energy markets. Supplies of middle distillates, which include diesel fuel and heating oil, dropped 6.7 percent to 477.6 million barrels in March from a year earlier, according to estimates by the International Energy Agency,

Crude prices continue its slide as investors started realizing that prices have climbed too fast and the market is overbought. In addition to investors fleeing the market as they figured prices would start dipping was that inventories in the US were predicted to have increased.

Oil prices were also moving in line with changes in the U.S. dollar, but that connection has weakened in recent days. The dollar fell to a record low against the euro in April but has regained ground since then, a weaker greenback makes dollar-priced crude more affordable for holders of stronger currencies.

The IEA, an energy adviser to 27 nations, said global oil supply averaged 86.8 million barrels a day in April, down 400,000 barrels from March. The IEA cut its estimate for 2008 global oil demand by about 390,000 barrels a day to 86.84 million barrels. It was the fourth-straight monthly decline.

Demand in bothChina and theMiddle East will rise 4.9 percent, more than making up for a drop in consumption fromNorth America andEurope, the agency said.

OPEC doesn't need to meet before September because crude oil prices are ``fair'',Iran's Oil Ministry news agency said yesterday, citing the country's oil minister. Oil prices may reach $200 a barrel if existing conditions in the market continued,Iran is producing 4.17 million barrels of oil a day and exports 2.5 million barrels daily,

Natural gas inNew York advanced as heating oil and crude surged to records. Global supplies of middle distillates, which include diesel fuel and heating oil, probably dropped 6.7 percent to 477.6 million barrels in March from a year earlier, according to the IEA report.

Utilities and large industrial consumers build gas stockpiles during the summer to meet their needs during winter when demand outstrips production. Hot weather can limit injections by spurring electricity demand from gas-fired power plants to run air conditioners, prompting prices to rise on competition for supplies

TheAtlantic Ocean hurricane season starts June 1. Storms that cut through theGulf of Mexico can disrupt gas production from the region.

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 5366 levels. If market breaches 5366 may see prices to take further upside towards5432 and 5525 however if it holds back below 5207 may see prices to fall further on today. Major support is seen at5114 and 5048

Recommendations-MCX Crude Oil May: Buy at 5245 Target 5310 and 5375 Stop loss 5195



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 479 Target 486 and 491 Stop loss at 475


MCXARUN
9994500540