Crude Oil prices came under pressure last week, on news that Gaddafi accepted a peace plan including an immediate ceasefire.
A warning from The International Energy Agency (EIA) that high prices could grind down oil demand also put pressure on the commodity. In addition to this, weak sentiments in the global financial markets also exerted pressure on oil prices.
Prices declined by 2.8 percent and touched a low of $ 105.3l/bbl in the last week. Depreciation bi the domestic currency resisted sharp decline in prices on Indian bourses.
Natural Gas
Gas prices gained around 4.5 percent on the Nymex last week and close at $4.215/mmBtu on Friday. Prices traded higher mainly on the back of weakness in the US dollar. Report released by the US Energy Department yesterday showed that natural gas stocks increased less-than-expected by 28 billion cubic feet (bcf) for the week ending 8th April. On the MCX. natural gas prices surged by 5.3 percent to close at 187.5 in the last week.
Outlook
Crude Oil prices are expected to trade lower today, mainly due to China’s move to control Inflation, choppy sentiments in the global markets and dollar strength.
