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India Equity Research Reports, IPO and Stock News
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Crude and Natural Gas prices
• Brent crude has fallen to ~US$109/bbl from its peak of US$116/bbl
during the first week of March 2011. This fall of US$5-6/bbl is on the
back of earthquakes in Japan which is the 3rd largest consumer of crude
oil after US and China. ( Japan’s oil consumption : 4.4mbpd)
• Henry Hub natural gas price is currently hovering around
US$3.9/mmbtu. Natural gas prices so far this month have been in the
range of US$ 3.7-3.9/mmbtu. The average price for the month so far
stood at US$3.8/mmbtu against US$4.1/mmbtu in February 2011 and
US$4.5/mmbtu in January 2011.
• Futures prices continue to indicate a cool down in crude prices from
current levels to ~US$105/bbl, similar to what it was in the beginning of
the month. No significant change is seen in Henry Hub natural gas
futures prices.
Refining Margins
• Strong GRMs were seen during the month, hovering
currently at around US$9.8/bbl, after reaching a high of
US$10.8/bbl last week. The average for the last fortnight
stood at US$7.8/bbl, around US$1.0/mmbtu higher than
the previous month’s average of US$6.9/bbl.
• This increase in the GRM is primarily due to an increase in
diesel prices. The uptick in the diesel prices can be
attributed to the speculation that Japan might increase its
diesel and FO requirements, as a result of which the diesel
spreads have risen to US$24/bbl. Such levels were seen
sometime at the end of September 2008.
• Arab light-heavy spreads remain close to US$4.0/bbl. The
WTI-WTS sweet-sour spreads averaged to US$4.3/bbl for
the month so far as compared to US$5.4/bbl in February
2011.
Key Events
• ONGC natural gas discovery in Tripura: ONGC has announced a significant natural gas discovery in the Tripura block. The well located
in the Agartala PML (Assam-Arakan basin) was drilled to a depth of about 3,515 meters and one of its sand zone flowed gas at the rate of
113,400 scm/day. The discovery has been notified to the DGH, but the management has not given any details on the reserves that this
block might hold. The stock may react positively on the back of this announcement; however no reserve estimates are currently available.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Crude and Natural Gas prices
• Brent crude has fallen to ~US$109/bbl from its peak of US$116/bbl
during the first week of March 2011. This fall of US$5-6/bbl is on the
back of earthquakes in Japan which is the 3rd largest consumer of crude
oil after US and China. ( Japan’s oil consumption : 4.4mbpd)
• Henry Hub natural gas price is currently hovering around
US$3.9/mmbtu. Natural gas prices so far this month have been in the
range of US$ 3.7-3.9/mmbtu. The average price for the month so far
stood at US$3.8/mmbtu against US$4.1/mmbtu in February 2011 and
US$4.5/mmbtu in January 2011.
• Futures prices continue to indicate a cool down in crude prices from
current levels to ~US$105/bbl, similar to what it was in the beginning of
the month. No significant change is seen in Henry Hub natural gas
futures prices.
Refining Margins
• Strong GRMs were seen during the month, hovering
currently at around US$9.8/bbl, after reaching a high of
US$10.8/bbl last week. The average for the last fortnight
stood at US$7.8/bbl, around US$1.0/mmbtu higher than
the previous month’s average of US$6.9/bbl.
• This increase in the GRM is primarily due to an increase in
diesel prices. The uptick in the diesel prices can be
attributed to the speculation that Japan might increase its
diesel and FO requirements, as a result of which the diesel
spreads have risen to US$24/bbl. Such levels were seen
sometime at the end of September 2008.
• Arab light-heavy spreads remain close to US$4.0/bbl. The
WTI-WTS sweet-sour spreads averaged to US$4.3/bbl for
the month so far as compared to US$5.4/bbl in February
2011.
Key Events
• ONGC natural gas discovery in Tripura: ONGC has announced a significant natural gas discovery in the Tripura block. The well located
in the Agartala PML (Assam-Arakan basin) was drilled to a depth of about 3,515 meters and one of its sand zone flowed gas at the rate of
113,400 scm/day. The discovery has been notified to the DGH, but the management has not given any details on the reserves that this
block might hold. The stock may react positively on the back of this announcement; however no reserve estimates are currently available.
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