Energy Market Outlook and Sector Updates: Nirmal Bang
U. S. crude oil futures settled at the lowest level in eight weeks on Thursday as weak home sales suggested a slow economic recovery and added to demand worries following a government report on Wednesday of a surprise large increase in oil supply. NYMEX natural gas futures ended higher on Thursday after a government report showed a weekly gas inventory build in line with market expectations.
OPEC seaborne oil exports, excluding Angola and Ecuador, will rise by 160,000 barrels per day in the four weeks to Oct.
10, analyst Roy Mason at UK consultancy Oil Movements, said.
Japan Energy Corp, the nation's sixth-biggest oil refiner, said on Friday it plans to cut its crude oil processing volumes for October-December by 11 percent from the same period a year earlier due to slow domestic demand.
Nigeria's foreign minister said a government amnesty in the Niger Delta was working, noting oil output was set to rise as a cease-fire holds.
The U. S. Energy Information Administration report showed total domestic gas inventories climbed to 3.525 tcf and next week should break the all-time high of 3.565 tcf set in 2007.
Crude oil may remain subdued for the day as the demand concerns persist globally. News of an increase in supply from Nigeria is likely to pressurize crude prices further. We recommend selling crude oil on rise.