No major downside in crude on stimulus hopes from US

Crude Oil rose yesterday in choppy trading as supportive expectations that the U.S. Federal Reserve will act to stimulate the economy were countered by weak data from China that raised concerns about demand for oil.  China is raising the retail price of gasoline and diesel by 6 percent and 6.5 percent respectively from Tuesday to track climbing crude prices, the government said, a move that could help pare refining losses at oil firms.  Iran is in talks to sell crude oil to Egypt, Iranian Oil Minister Rostam Qasemi was quoted as saying by the Iranian Students' News Agency (ISNA) on Monday.

U.S. crude oil stockpiles likely fell last week for the second straight time, with U.S. Gulf Coast oil production and imports still reeling after Hurricane Isaac, a preliminary Reuter’s poll showed on Monday. • Chevron Corp's reported a release of lube oil due to a broken pipe at its 245,000 barrel-per-day (bpd) refinery in Richmond, California, according to a filing with state regulators. • Canadian spot natural gas prices rose on Monday on higher weekday demand and tight short-term supplies in Alberta. 

Fundamental Outllok 

Crude oil prices are trading a tad lower on NYMEX today. We do not expect a major downside in the prices of crude oil on account of stimulus hopes from US.

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