energy intraday

Energy
08 May 2008 09:40:22

Major Headlines:

Crude oil futures made a record high at above $123 a barrel after a U.S. government report showed inventories rose to the highest in eight months.

Crude oil may reach $125 a barrel this week because of concern over a supply shortage before the peak U.S.summer driving season, Libya's top oil official said. There is no shortage of supply now, there is concern that there may be one and it may go to $125 by Friday,'' Ghanem, who heads Libya's National Oil Corp., said yesterday



Output from Nigeria declined 160,000 barrels to 1.88 million barrels a day last month, the lowest since August 1999,according to a Bloomberg News survey of oil companies, producers and analysts. The country slipped to being the seventh-largest producer, from six-largest, in the Organization of Petroleum Exporting Countries.

OPEC pumped an average 32.105 million barrels of crude oil a day last month, down 320,000 barrels from March, the survey showed. Supply shortfalls may send oil to between $150 and $200 a barrel within two years, Goldman Sachs Group Inc. analysts, led by Arjun N. Murti, said in a report two days ago

Most analysts predict the growing level of demand from China will keep the price elevated, at least over the $US100-a-barrel mark, particularly as there are no signs supply is going to be increased



BHP Billiton Ltd., the world's largest mining company, said its oil and gas business is a ``strong fit'' with its metals operations and unique among units for yielding consistent returns.
Average daily oil and gas production was 378,000 barrels of oil equivalent last month, up from 318,000 barrels in the 2006 financial year



Natural Gas also advanced amid speculation a government report today may show stockpiles rose less than the average for this time of year.



The National Weather Service was predicting below-normal temperatures across almost the entire northeast and Midwest from May 13 to May 21, but the weather wasn’t expected to be cold enough to spark significant demand for natural gas For heating.



There should also be a continuation of below normal temperatures in the Upper Midwest, Great Lakes, and eastern Canada for the six- to ten-day period

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 5130 levels. If market breaches 5130 may see prices to take further upside towards 5180 and 265 however if it holds back below 4995 may see prices to fall further on today. Major support is seen at 4910 and 4860

Recommendations-MCX Crude Oil May: Buy at 5040 Target 5095 and 5165 Stop loss 4990



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 470.60 levels. If market breaches 470.60 may see prices to take further upside towards 475.30 and 482.60 however if it holds back below 458.67 may see prices to fall further on today. Major support is seen at 451.30 and 446.60

Recommendations-MCX Natural Gas May: Buy at 463 Target 470 and 482 Stop loss at 456

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