energy intraday

Energy
16 May 2008 09:48:40



Crude oil fell more than $2 a barrel inNew York after an Energy Department report showed that U.S.supplies of natural gas, which competes with petroleum-based fuels, increased more than forecast last week

Crude oil rose Earlier, after a report showed that economic growth in countries using the euro accelerated in the first quarter, signaling that European fuel use will climb. Gross domestic product in the 15 countries increased 0.7 percent from the fourth quarter and Demand for oil continues to rise in emerging markets even as prices reach a record, Saudi Arabian Oil Minister Ali al-Naimi said in a speech in Seoul yesterday

The Organization of Petroleum Exporting Countries cut its 2008 global oil demand forecast for a second time in three months as some producers report difficulties selling ``heavy'' crude grades.


OPEC, which controls more than 40 percent of the world's crude oil supply, forecasts 2008 oil demand will be 86.95 million barrels a day, a 1.2 million barrel a day gain from 2007. The estimate is a ``slight downward revision'' of 20,000 barrels a day from last month's estimate



Total OPEC production averaged 31.7 million barrels a day in April, a drop of nearly 400,000 from March on disruptions in Nigeria and Iraq



OPEC cut this month's estimate of 2008 oil supply from outside OPEC by 106,000 barrels to 50.18 million barrels a day on lower production from Mexico and the North Sea. Total output from non-OPEC producers will increase by 740,000 barrels a day this year, OPEC said.



UBS AG, Europe's biggest bank by assets, raised its 2008 price forecast for West Texas Intermediate crude oil by 32 percent because of supply disruptions and increasing demand for middle-distillate fuels. The bank lifted this year's forecast to $115 a barrel from $87 a barrel, and its 2009 estimate for WTI crude by 54 percent to $120 a barrel,



Natural gas in storage in the U.S. rose last week and is 0.2 percent above the five-year average for this time of year, a government report said Thursday. The inventory level was slightly above the five-year average, but well below last year's storage level of about 1.82 trillion cubic feet, according to the government data.



Devon Energy Corp. officials say the Oklahoma City-based company has reached a milestone in its production of natural gas from the Barnett Shale. Devon's production from the shale in north Texas surpassed 1 billion cubic feet of natural gas equivalent during April. The company says it reached that production level 21 months ahead of schedule


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 5430 levels. If market breaches 5430 may see prices to take further upside towards 5499 and 5654 however if it holds back below 5206 may see prices to fall further on today. Major support is seen at 5051and4982

Recommendations-MCX Crude Oil June: Buy at 5060 Target 5110 and 5200 Stop loss 5025



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 491.00levels. If market breaches 491.00 may see prices to take further upside towards 505.00 and513.00 however if it holds back below 469.00 may see prices to fall further on today. Major support is seen at 461.00 and 447.00

Recommendations-MCX Natural Gas May: Buy at 469 Target 474 and 480 Stop loss at 466


MCXARUN
9994500540