energy intraday

Energy: Global oil productions falls
12 June 2008 11:04:42
Crude oil raised more than $5 a barrel after a U.S. government report yesterday showed that inventories declined more than expected, increasing concern stockpiles may be strained during the summer driving season.

Prices also climbed because China's crude-oil imports jumped 25 percent last month from a year earlier as refiners boosted fuel production to meet higher demand in southwestern regions rattled by an earthquake. Imports rose to 16.2 million metric tons in May, and as tensions rose between Iran, OPEC's second-largest oil producer, and the U.S.

Global oil production fell for the first time in five years in 2007 and reserves also declined as prices rose to records, British Petroleum cop said in its annual Statistical Review of World Energy. Crude oil production dropped 0.2 percent to 81.533 million barrels a day last year, from 81.659 million barrels a day in 2006, the London-based company said today. Proved reserves were 1,237.9 billion barrels at the end of last year, compared with a revised total of 1,239.5 billion barrels for 2006.

The US Energy Department (EIA) says motorists can expect gasoline prices to remain close to $4 a gallon through next year. Oil prices should remain well above $100 a barrel through 2009, and it’s likely to average $126 a barrel next year, $4 higher than this year. Gasoline prices are expected to peak at $4.15 a gallon in August, but won't go down much. The agency projects gasoline averaging $3.92 a gallon through 2009.

A meeting due June 22 in Saudi Arabia for the world's biggest oil producers and consumers to discuss record-high crude prices will be at head-of-state level, OPEC.

The OPEC maintains the oil market is well supplied and that current prices do not reflect market fundamentals of supply and demand. Saudi Arabia, a close Western ally, has come under huge U.S. pressure to boost output to help end volatility in world markets that saw benchmark crude prices in New York jump close to 140 dollars a barrel last Friday.

Natural gas in New York advanced amid speculation supply gains will be below average for the week because a heat wave spurred demand and as crude oil surged. Inventories of gas advanced 90 billion cubic feet in the week ended June 6, 8 billion below the five-year average.

MCX Crude Oil June - Technical Outlook:

Tech 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.

Technicals have turned neutral to bullish and market is expected to remain positive above 5950 levels. If sustain above this level can see a rally towards 6031 and 6178, If market sustains below 5760. Can see a further fall towards 5722 and 5575

Recommendations-MCX Crude Oil June: Buy at 5638 Target 5695 and 5780 Stoploss 5585

MCX Natural gas June - Technical Outlook:

Tech 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.

Technicals have turned neutral to bullish and market is expected to remain positive above 547 if sustain above this level can see a rally towards 553 and 560 If market sustains below 535 can see a further fall towards 530 and 524

Recommendations-MCX Natural Gas June: Buy at 538 Target 545 and 552 Stop loss at 534


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