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    MTECHTIPS 1. Oil falls, extends Friday’s drop Oil futures traded lower during Monday’s Asian session, extending declines seen during Friday’s U.S. session. On the New York Mercantile Exchange, light, sweet crude futures for June delivery dropped 0.93% to USD95.14 per barrel in Asian trading Monday after falling 0.5% on Friday in the U.S. to settle the week at USD95.94 a barrel. Nymex oil futures added 0.5% on the week, the third consecutive weekly advance. Speculation that the Federal Reserve is mulling winding down or bringing an end to its quantitative easing program is seen as putting a lid on oil prices. The Fed is currently running a USD85 billion monthly asset-purchasing program, which weakens the greenback to bolster recovery in the world’s largest economy. A strengthening U.S. jobs market could give the Fed room to consider an end to quantitative easing. Last Thursday, the U.S. Labor Department said initial claims for jobless benefits fell by 18,000 last week to a five-year low of 324,000. Analysts expected a reading of 345,000 claims. The U.S is the world’s largest oil consumer and traders will have plenty of data points with which to play oil this week including April retail sales for the U.S., which will be reported later Monday. 2. Crude oil futures lower after weak China data, stronger dollar weighs Crude oil futures were lower on Monday, as appetite for growth-linked assets weakened after data showed that industrial production in China rose at a slower rate than expected last month.Oil prices also struggled due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD95.25 a barrel during European morning trade, down 0.8% on the day. New York-traded oil prices fell by as much as 1% earlier in the session to hit a daily low of USD95.05 a barrel. Official data released earlier showed that industrial production in China rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month. Separate data showed that retail sales in China increased by 12.8% in April, in line with expectations. The weaker-than-expected data fuelled concerns that China’s economic recovery was stalling. China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand. Meanwhile, the dollar was in demand as recent strong U.S. employment data fuelled speculation over an earlier-than-expected end to the Federal Reserve’s USD85 billion a month asset purchase program. 3. Brent Crude Oil to resume range-bound trade by end of Q2 Brent crude oil prices are expected to resume range-bound trading at about $111/bbl in the tail end of the second quarter, stated London based Barclays in its recent market analysis This will coincide with global oil demand surpassing 90 mb/d for the first time in history, with non-OECD demand exceeding OECD demand. In terms of demand growth, Barclays expects upside surprises in the Atlantic (Latin America) and the Pacific (smaller non-OECD Asia Pacific countries).China is expected to grow a moderate 5%. This positive turnaround is already largely reflected in this week’s OPEC monthly oil market report with the organisation lifting the call on its own crude by 100 thousand b/d to 29.8 mb/d, in line with Barclays expectations.Brent remained above $104/bbl last week with a slight pick-up in intraday volatility. The bank maintains it's view that there is not yet enough momentum in the benchmark to power a complete retracement to the familiar range around $111/bbl.While the macro-environment has turned positive with upside surprises in data seen this week from Germany, Australia and the US, this is likely to only support prices at current levels at best, rather than propel a complete upward retracement. This is because, on the physical markets, demand fo

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    MTECHTIPS 1. Oil falls, extends Friday’s drop Oil futures traded lower during Monday’s Asian session, extending declines seen during Friday’s U.S. session. On the New York Mercantile Exchange, light, sweet crude futures for June delivery dropped 0.93% to USD95.14 per barrel in Asian trading Monday after falling 0.5% on Friday in the U.S. to settle the week at USD95.94 a barrel. Nymex oil futures added 0.5% on the week, the third consecutive weekly advance. Speculation that the Federal Reserve is mulling winding down or bringing an end to its quantitative easing program is seen as putting a lid on oil prices. The Fed is currently running a USD85 billion monthly asset-purchasing program, which weakens the greenback to bolster recovery in the world’s largest economy. A strengthening U.S. jobs market could give the Fed room to consider an end to quantitative easing. Last Thursday, the U.S. Labor Department said initial claims for jobless benefits fell by 18,000 last week to a five-year low of 324,000. Analysts expected a reading of 345,000 claims. The U.S is the world’s largest oil consumer and traders will have plenty of data points with which to play oil this week including April retail sales for the U.S., which will be reported later Monday. 2. Crude oil futures lower after weak China data, stronger dollar weighs Crude oil futures were lower on Monday, as appetite for growth-linked assets weakened after data showed that industrial production in China rose at a slower rate than expected last month.Oil prices also struggled due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD95.25 a barrel during European morning trade, down 0.8% on the day. New York-traded oil prices fell by as much as 1% earlier in the session to hit a daily low of USD95.05 a barrel. Official data released earlier showed that industrial production in China rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month. Separate data showed that retail sales in China increased by 12.8% in April, in line with expectations. The weaker-than-expected data fuelled concerns that China’s economic recovery was stalling. China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand. Meanwhile, the dollar was in demand as recent strong U.S. employment data fuelled speculation over an earlier-than-expected end to the Federal Reserve’s USD85 billion a month asset purchase program. 3. Brent Crude Oil to resume range-bound trade by end of Q2 Brent crude oil prices are expected to resume range-bound trading at about $111/bbl in the tail end of the second quarter, stated London based Barclays in its recent market analysis This will coincide with global oil demand surpassing 90 mb/d for the first time in history, with non-OECD demand exceeding OECD demand. In terms of demand growth, Barclays expects upside surprises in the Atlantic (Latin America) and the Pacific (smaller non-OECD Asia Pacific countries).China is expected to grow a moderate 5%. This positive turnaround is already largely reflected in this week’s OPEC monthly oil market report with the organisation lifting the call on its own crude by 100 thousand b/d to 29.8 mb/d, in line with Barclays expectations.Brent remained above $104/bbl last week with a slight pick-up in intraday volatility. The bank maintains it's view that there is not yet enough momentum in the benchmark to power a complete retracement to the familiar range around $111/bbl.While the macro-environment has turned positive with upside surprises in data seen this week from Germany, Australia and the US, this is likely to only support prices at current levels at best, rather than propel a complete upward retracement. This is because, on the physical markets, demand fo

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    Mtechtips Crudeoil

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    MtechTips
    MTECHTIPS 1. Oil falls, extends Friday’s drop Oil futures traded lower during Monday’s Asian session, extending declines seen during Friday’s U.S. session. On the New York Mercantile Exchange, light, sweet crude futures for June delivery dropped 0.93% to USD95.14 per barrel in Asian trading Monday after falling 0.5% on Friday in the U.S. to settle the week at USD95.94 a barrel. Nymex oil futures added 0.5% on the week, the third consecutive weekly advance. Speculation that the Federal Reserve is mulling winding down or bringing an end to its quantitative easing program is seen as putting a lid on oil prices. The Fed is currently running a USD85 billion monthly asset-purchasing program, which weakens the greenback to bolster recovery in the world’s largest economy. A strengthening U.S. jobs market could give the Fed room to consider an end to quantitative easing. Last Thursday, the U.S. Labor Department said initial claims for jobless benefits fell by 18,000 last week to a five-year low of 324,000. Analysts expected a reading of 345,000 claims. The U.S is the world’s largest oil consumer and traders will have plenty of data points with which to play oil this week including April retail sales for the U.S., which will be reported later Monday. 2. Crude oil futures lower after weak China data, stronger dollar weighs Crude oil futures were lower on Monday, as appetite for growth-linked assets weakened after data showed that industrial production in China rose at a slower rate than expected last month.Oil prices also struggled due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD95.25 a barrel during European morning trade, down 0.8% on the day. New York-traded oil prices fell by as much as 1% earlier in the session to hit a daily low of USD95.05 a barrel. Official data released earlier showed that industrial production in China rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month. Separate data showed that retail sales in China increased by 12.8% in April, in line with expectations. The weaker-than-expected data fuelled concerns that China’s economic recovery was stalling. China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand. Meanwhile, the dollar was in demand as recent strong U.S. employment data fuelled speculation over an earlier-than-expected end to the Federal Reserve’s USD85 billion a month asset purchase program. 3. Brent Crude Oil to resume range-bound trade by end of Q2 Brent crude oil prices are expected to resume range-bound trading at about $111/bbl in the tail end of the second quarter, stated London based Barclays in its recent market analysis This will coincide with global oil demand surpassing 90 mb/d for the first time in history, with non-OECD demand exceeding OECD demand. In terms of demand growth, Barclays expects upside surprises in the Atlantic (Latin America) and the Pacific (smaller non-OECD Asia Pacific countries).China is expected to grow a moderate 5%. This positive turnaround is already largely reflected in this week’s OPEC monthly oil market report with the organisation lifting the call on its own crude by 100 thousand b/d to 29.8 mb/d, in line with Barclays expectations.Brent remained above $104/bbl last week with a slight pick-up in intraday volatility. The bank maintains it's view that there is not yet enough momentum in the benchmark to power a complete retracement to the familiar range around $111/bbl.While the macro-environment has turned positive with upside surprises in data seen this week from Germany, Australia and the US, this is likely to only support prices at current levels at best, rather than propel a complete upward retracement. This is because, on the physical markets, demand fo

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    MTECHTIPS

    1. Oil falls, extends Fridays drop


    Oil futures traded lower during Mondays Asian session, extending declines seen during Fridays U.S. session. On the New York Mercantile Exchange, light, sweet crude futures for June delivery dropped 0.93% to USD95.14 per barrel in Asian trading Monday after falling 0.5% on Friday in the U.S. to settle the week at USD95.94 a barrel. Nymex oil futures added 0.5% on the week, the third consecutive weekly advance. Speculation that the Federal Reserve is mulling winding down or bringing an end to its quantitative easing program is seen as putting a lid on oil prices. The Fed is currently running a USD85 billion monthly asset-purchasing program, which

    weakens the greenback to bolster recovery in the worlds largest economy. A strengthening U.S. jobs market could give the Fed room to consider an end to quantitative easing. Last Thursday, the U.S. Labor Department said initial claims for jobless benefits fell by 18,000 last week to a five-year low of 324,000. Analysts expected a reading of 345,000 claims. The U.S is the worlds largest oil consumer and traders will have plenty of data points with which to play oil this week including April retail sales for the U.S., which will be reported later Monday. 2. Crude oil futures lower after weak China data, stronger dollar weighs Crude oil futures were lower on Monday, as appetite for growth-linked assets weakened after data showed that industrial production in China rose at a slower rate than expected last month.Oil prices also struggled due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD95.25 a barrel during European morning trade, down 0.8% on the day. New York-traded oil prices fell by as much as 1% earlier in the session to hit a daily low of USD95.05 a barrel.

    Official data released earlier showed that industrial production in China rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month. Separate data showed that retail sales in China increased by 12.8% in April, in line with expectations. The weaker-than-expected data fuelled concerns that Chinas economic recovery was stalling. China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand. Meanwhile, the dollar was in demand as recent strong U.S. employment data fuelled speculation over an earlier-than-expected end to the Federal Reserves USD85 billion a month asset purchase program. 3. Brent Crude Oil to resume range-bound trade by end of Q2 Brent crude oil prices are expected to resume rangebound trading at about $111/bbl in the tail end of the second quarter, stated London based Barclays in its recent market analysis This will coincide with global oil demand surpassing 90 mb/d for the first time in history, with non-OECD demand exceeding OECD demand. In terms of demand growth, Barclays expects upside surprises in the Atlantic (Latin America) and the Pacific (smaller non-OECD Asia Pacific countries).China is

    expected to grow a moderate 5%. This positive turnaround is already largely reflected in this weeks OPEC monthly oil market report with the organisation lifting the call on its own crude by 100 thousand b/d to 29.8 mb/d, in line with Barclays expectations.Brent remained above $104/bbl last week with a slight pickup in intraday volatility. The bank maintains it's view that there is not yet enough momentum in the benchmark to power a complete retracement to the familiar range around $111/bbl.While the macroenvironment has turned positive with upside surprises in data seen this week from Germany, Australia and the US, this is likely to only support prices at current levels at best, rather than propel a complete upward retracement. This is because, on the physical markets, demand for prompt cargoes of light grade crude continues to be muted. 4. India April inflation rate eases; Crude Oil imports jump 3.92% y/y India consumer prices jumped 9.39% for the month of April year-over-year and compared to 10.39% climb in March, India's Ministry of Statistics & Programme Implementation said in a release. The dip is registered for the second consecutive month.Oil imports during April, 2013 were valued at $ 14085.0 million which was

    3.92 per cent higher than oil imports valued at $ 13553.5 million in the corresponding period last year.The months so far into the year has seen India's inflation charting a downtrend, especially in the wholesale inflation front.This had recently given India's central bank The Reserve Bank of India to administer lower lending rates to the tune of 25 bps recently. Mounting inflation had been one of the reasons that deterred the Bank from cutting rates. Meanwhile, the nation's economy is projected to have climbed 5% in the fiscal year that ended March 31. India's wholesale inflation rate dipped to 5.96% on year in March, the lowest in 40 months and may slow to 5.38% in April as per Dow Jones data. Inflation rate in urban areas: 9.73% in April ( 10.38% in March) Inflation rate in rural areas: 9.16% in April (10.41% in March)Meanwhile, India''s exports during April, 2013 were valued at $ 24164.37 million (Rs.131395.43 crore) which was 1.68 per cent higher in Dollar terms (6.71 per cent higher in Rupee terms) than the level of US $ 23766.14 million (Rs. 123137.36 crore) during April, 2012.

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