Crude Oil Eases Natural Gas Gains During Asian Session

                                               Crude oil dipped a bit this morning after lower than expected retail sales and industrial production numbers from China over the weekend disappointed traders. Crude is trading at 9180 down by 15 pips, after gaining on Friday on the back of the nonfarm payroll release. The jobs data showed the US created more jobs than forecast and unemployment tumbled to 7.7% supporting theories that the US economy was beginning to show a stronger recovery. On Friday crude oil climbed to trade at just under 92.00 but remained in the 91-92$ range. Crude oil futures closed near $92 per barrel and gained more than 1% for the week, as strong import data out of China and a jump in US nonfarm payrolls offered positive signals for demand, outweighing pressure from a rise in the dollar. The dollar rose versus most of its major peers as signs of a strengthening recovery in the world’s biggest economy boosted demand for the U.S. currency.

Fundamental data showed that Indian importers have halted shipments from Iran, as insurance companies are refusing to cover the refineries that process imported crude oil due to Western-imposed sanctions on Iran. Saudi Aramco cut April official selling prices for its Asian buyers for all but its Arab Super Light grade, while Abu Dhabi National Oil Co raised retroactive OSPs for all but its heavy grade for February. Leading oil exporter Saudi Arabia pumped 9.15 million barrels per day of crude oil in February, an industry source reported over the weekend, slightly up from the 9.05 million bpd it produced in January.

Chinese refineries processed 3 percent more crude oil in the first two months of the year at 80.65 million tonnes compared with a year earlier, data from the National Statistical Bureau (NSB) showed on Saturday.

Gas flows from Libya into Italy have gradually resumed and should return to normal levels by the end of the week after being disrupted by fighting, the chairman of Libya’s National Oil Corporation  said on Sunday.

Natural gas continues to climb on Monday morning trading at 3.644 up 18pips. Natural gas futures closed up by more than 1% and settled at a fresh 2013 high, amid lingering late winter cold in important consuming regions. Natural gas futures rallied last week, adding to earlier gains after the Energy Information Administration reported a drop in U.S. inventories that was more than the market expected. Supplies fell 146 billion cubic feet for the week ended March 1, the EIA said. Analysts polled by Platts forecast a decline between 130 billion cubic feet and 134 billion. Total stocks now stand at 2.083 trillion cubic feet, down 361 billion cubic feet from the year-ago level and 269 billion cubic feet above the five-year average, the government said.