Energy
Crude Oil
WTI oil prices declined by 1.4 percent on Monday to close at
$47 per barrel snapping two consecutive days of gains, on renewed concerns
about an oil glut, a stronger dollar and expectations that Nigerian rebels will
stop hampering that country's crude output.
Free Energy Tips U.S. crude stockpiles
likely rose for a second straight week last week, building by 1.3 million
barrels, a Reuters poll showed. That came on top of Iraq's pledge at the
weekend to ship more crude after a ramp up of exports from its southern ports
in August. Nigerian rebels pledged to end hostilities against the industry in
Africa's No. 1 producer, which they repeatedly attacked earlier this year by
blowing up pipelines.
Oil rallied from early August until the middle of last week
after hints by Saudi Arabia and fellow members of the Organization of the
Petroleum Exporting Countries that they might agree to an output freeze with
non-OPEC oil producers at a meeting in Algeria on Sept. 26-28.
Outlook
On an intraday basis, we expect oil prices to trade lower as
global oil markets remain well supplied from the OPEC as well as Non-OPEC
nations. Although, the meeting of the oil producers next month will be a close
watch, oil inventories globally remain very high in the OECD nations as well as
in the US.
On the MCX, oil prices are expected to trade lower today.
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