Crude oil prices declined almost 1% on the Nymex, to close at $ 81.43/bbl on Friday. Oil prices touched an intra-day low of $80.56/bbl on the Nymex on Friday. On the MCX, oil prices slipped around 1.3%, to close at ` 3626/bbl.
Crude oil prices witnessed sharp declines as the strike in France was ended after 33 days of protest. The refineries were reopened to normal, easing concerns over supply. Saudi Arabia's oil minister said today that he hoped of oil prices staying near current levels, and that more oil would be pumped to the market if needed.
Natural gas prices rose sharply in the last week as forecast of strong heating demand in the US East Coast and the Gulf of Mexico coast from 3rd – 7th November supported an upside in prices. A cooler weather in the US in early will boost demand for natural gas as heating fuel. Prices on the Nymex gained 9.4% in the last week as this forecast raised hopes of demand. Around 52% households use natural gas for heating purposes in the US. Latest natural gas inventory data by the US Energy Department indicated that inventories rose by 71 billion cubic feet in the week ended 22nd October.
OUTLOOK
Crude oil prices may witness a range-bound activity in today’s session as on one hand we have positive Manufacturing data from China. The Asian tiger has recently surpassed the US as the world’s largest consumer of energy.
However, on the other side, easing supply concerns in France would cap gains. Support for NYMEX December Crude Oil is seen at $81.15/$80.00 levels & resistance at $81.95/$82.45 levels.
Natural Gas MCX November contract has major support at ` 176.00 & resistance at ` 196.70 levels.
