Nymex crude oil prices traded lower by almost 1 percent last week mainly on the back of a stronger dollar coupled with news that Saudi Arabia was increasing oil supply to the Asian countries.
Additionally, weak sentiments in the global equity markets also exerted pressure on the oil prices. It touched a low of $97.74/bbl last week and closed at $99.29/bbl on Friday.
On the MCX, crude June contract declined more than 1 percent on account of Rupee appreciation and touched a low of `4383/bbl.
Natural gas
Natural Gas Inventories increased
On a weekly basis, Nymex Natural gas prices declined more than 1.5 percent mainly on the back of more than expected rise in US natural gas inventories coupled with dollar strength.
Report released by the US Energy Department indicated that natural gas stocks increased by 80 billion cubic feet (bcf) for the week ending 3rd June. Prices touched a low of $4.510/mmBtu and close at $4.760/mmBtu.
However, on the MCX, natural gas rose 0.3 percent last week and closed at `213.9 on Friday.
Outlook
We expect crude oil prices to come under pressure today mainly tracking a stronger dollar coupled with poor global market sentiments.
Additionally, slowdown in major economies like US and China may create demand concerns for oil from world’s two largest oil consumers. Thus will also led downside pressure on crude oil prices.
