Crude oil mid night Report

 

© Reuters. UPDATE 8-Crude prices jump 3 pct on gasoline rally, weak dollar

* Dollar slumps ahead of likely dovish Fed statement on Wednesday
* Gasoline hits Aug highs on refinery outages, boosting crude
* Citi says Saudi Arabia, Iran may ramp up output, tempering rally
* Coming up: API data on U.S. oil stockpiles at 2030 GMT (Updates with market settlements)
By Barani Krishnan
NEW YORK, April 26 (Reuters) - Crude oil prices rose about 3 percent on Tuesday on the back of a rally in the gasoline market and as a tumbling dollar boosted commodities denominated in the greenback after bets the Federal Reserve will hold U.S. interest rates where they are.
U.S. gasoline futures RBc1 rallied more than 3 percent to their highest since August on Tuesday, boosting refinery margins 1RBc1-CLc1 , after a series of Gulf Coast refinery unit outages, buying from Venezuela and a reported drop in New York inventories. think the market has become more optimistic on oil products," said Scott Shelton, broker and commodities specialist with ICAP (LON:IAP) in Durham, North California. "If refining margins stay strong, crude runs will be quite high and that will make the odds of a crude stock draws increase significantly."
Analysts polled by Reuters expect the U.S. government to announce on Wednesday that crude stocks rose 2.4 million barrels last week while distillate and gasoline stockpiles fell. Industry group American Petroleum Institute will issue preliminary inventory at 4:30 p.m. EDT (2030 GMT). EIA/S
Crude futures rose from early in the session as the dollar .DXY fell for a second straight day ahead of Wednesday's Fed policy statement. The dollar rallied earlier this year, weighing on oil, as investors braced for possible interest rate hikes from the Fed's Federal Open Market Committee (FOMC). USD/
Brent crude futures LCOc1 finished up $1.26, or 2.8 percent, at $45.74 a barrel.
U.S. crude futures CLc1 settled up $1.40, or 3.3 percent, at $44.04.
Oil prices are headed for a fourth straight week of gains, with Brent on track to finish April nearly 16 percent higher for its best monthly gain in a year, despite aborted plans by major producers to agree on an output freeze at a meeting in Qatar earlier this month. now, the line of least price resistance remains to the upside and we will be reassessing this view in light of tomorrow's FOMC statement," said Jim Ritterbusch of Chicago-based oil market consultancy Ritterbusch & Associates.
Still, analysts warned of possible price wars and excessive supply ahead.
Citigroup (NYSE:C) said Saudi Arabia could target 500,000 barrels per day in new sales that would bring its output to at least 11 million bpd in a tussle with Iran for market share.
"If anyone had a doubt about Saudi Aramco's ability to use its logistical system and spot sales to increase market share, its recent 730,000-barrel sale of a cargo to a Chinese teapot refiner in Shandong should lay any doubts to rest," Citi said in a note to clients. GRAPHIC-Breaking down a barrel of oil:

MARKET REPORT 2.50AM 9 MARCH 2016

Nifty fails to hold 7500, Sensex ends flat amid weak global cues Index heavyweights Reliance Industries, ITC and HDFC supported equity benchmarks while banks, infra and select technology stocks saw selling pressure. 16:04 Moneycontrol Bureau The market started off truncated week on a flat note. The Nifty failed to hold 7500-mark amid choppy trade and weak global cues. Index heavyweights Reliance Industries, ITC and HDFC supported equity benchmarks while banks, infra and select technology stocks saw selling pressure. It was a consolidation day after more than 6 percent rally last week. The 30-share BSE Sensex rose 12.75 points to 24659.23 while the Nifty fell 0.05 points to 7485.30. The broader markets too ended flat. Nilesh Shah of Kotak Mutual AMC says the Nifty is unlikely to revisit lows of 6800 unless catastrophic events take place. He advised clients to be marginally overweight on equities post Budget. Global markets saw consolidation and profit taking after last week's rally. European markets like CAC and DAX fell 1.6 percent each followed by FTSE with 1 percent loss while in Asia, Hang Seng and Nikkei declined more than 0.7 percent each. However, Shanghai bucked the trend, closing in green despite exports fell 25.4 percent in February, the biggest fall since 2009. Oil prices edged lower today after Kuwait said it would only agree to an output freeze if all major producers take part and Goldman Sachs analysts poured cold water over the prospects for a sustained rally. Brent crude futures fell 0.6 percent to USD 40.6 a barrel. Meanwhile, Finance Minister Arun Jaitley says the government has withdrawn (Budget) proposal to tax Employee Provident Fund but retained tax proposal for NPS.

 
 
 

Commodities stocks saw buying interest today. In oil space, Reliance Industries was the leading contributor to Sensex's gains, up 2 percent and GAIL gained 2.5 percent. Sugar stocks like Balrampur Chini, Dwarikesh Sugar & Dalmia Sugar hit 52-week high, rising 7-17 percent. Metals stocks like Tata Steel, Vedanta and Hindalco rose 1-5 percent on surge in iron ore prices. Lupin shares climbed 2 percent as Nomura upgraded the stock to buy from neutral, saying generic Fortamet and Glumetza (diabetes medicines) offer strong near-term earnings support to the company. The brokerage also increased target price to Rs 2,110 apiece from Rs 2,080 earlier, implying 19 percent potential upside. Natco Pharma was up 1.7 percent as Kotak Securities has initiated buy on the stock with a target of Rs 563 (implying a 17 percent upside), citing strong hepatisis C portfolio and US revenue. Maruti Suzuki lost 3 percent. The company launched compact SUV Vitara Brezza today, the first launch of 2016. SBI was down 2.5 percent. Debt Recovery Tribunal has passed orders on SBI's plea, saying Diageo cannot disburse money to Vijay Mallya till March 28 and Mallya can't withdraw USD 75 million settlement received from Diageo till case disposed off. Among others, ITC and HDFC gained more than 1.5 percent while ICICI Bank, HUL, Axis Bank, Cipla and Hero Motocorp fell 1-2.5 percent.
 
 

Nifty fails to hold 7500, Sensex ends flat amid weak global cues Index heavyweights Reliance Industries, ITC and HDFC supported equity benchmarks while banks, infra and select technology stocks saw selling pressure. 16:04 Moneycontrol Bureau The market started off truncated week on a flat note. The Nifty failed to hold 7500-mark amid choppy trade and weak global cues. Index heavyweights Reliance Industries, ITC and HDFC supported equity benchmarks while banks, infra and select technology stocks saw selling pressure. It was a consolidation day after more than 6 percent rally last week. The 30-share BSE Sensex rose 12.75 points to 24659.23 while the Nifty fell 0.05 points to 7485.30. The broader markets too ended flat. Nilesh Shah of Kotak Mutual AMC says the Nifty is unlikely to revisit lows of 6800 unless catastrophic events take place. He advised clients to be marginally overweight on equities post Budget. Global markets saw consolidation and profit taking after last week's rally. European markets like CAC and DAX fell 1.6 percent each followed by FTSE with 1 percent loss while in Asia, Hang Seng and Nikkei declined more than 0.7 percent each. However, Shanghai bucked the trend, closing in green despite exports fell 25.4 percent in February, the biggest fall since 2009. Oil prices edged lower today after Kuwait said it would only agree to an output freeze if all major producers take part and Goldman Sachs analysts poured cold water over the prospects for a sustained rally. Brent crude futures fell 0.6 percent to USD 40.6 a barrel. Meanwhile, Finance Minister Arun Jaitley says the government has withdrawn (Budget) proposal to tax Employee Provident Fund but retained tax proposal for NPS.

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