U. S. crude oil futures ended higher for the session on Monday, lifted by ISM Index data from the U. S and China that reinforced perception the global recession was abating, and as the dollar weakened to a five-month low.

U. S. natural gas futures outperformed crude oil after remaining laggard in the previous sessions and ended the day up by 4.5 % on MCX and 10.7% on COMEX.

Global oil demand may not have bottomed out yet but could still recover by the end of 2009, the head of the International Energy Agency said.

The IEA also said Monday that OPEC compliance with output curbs is eroding as prices rise.

The U. S. Energy Information Administration reported last week that gross domestic natural gas production in March fell slightly from February levels but remained more than 2 percent above the same time last year.

The National Weather Service eight- to 14- day outlook on Monday called for normal or below normal temperatures for most of the nation, except in Texas, where above seasonal readings were expected.

We expect a further upside in energy complex. Natural Gas looks good for the day and has potential to rise by another 4- 5% as it has not moved in line with crude. In addition, we have seen improvement in demand and there are yet no signs of an increase in supply. We recommend buying Natural Gas at every dip.

Crude prices retained uptrend yesterday. The RSI and ADX are supporting the uptrend. Thus, one should remain buy in crude for the day. However, the RSI- 77 in overbought zone brings in a caution note. Thus, one should start booking partial profits in their long positions.

Natural Gas prices moved up sharply in the previous session, meting our yesterday’s target of 192. The rising RSI and ADX support the uptrend in Natural Gas. Thus, one can buy natural gas at every dip above 188 for the day. We can see 203 on the upside today.