Nymex crude oil prices increased by more than 1 percent on Monday taking cues from expectations that Iran will reply to European Union embargo on Iranian crude oil by shutting the Strait of Hormuz.
This may lead to supply concerns which could provide upside support for oil prices. Additionally, a weaker dollar also acted as a positive factor.
Oil prices touched an intra-day high of $100.24/bbl and closed at $99.6/bbl yesterday. On the MCX, crude oil prices increased slightly by 0.3 percent as further gains were capped on account of Rupee appreciation.
Crude oil closed its trading session at the level of Rs.5020/bbl after touching an intra-day high of Rs.5029/bbl on Monday.
API Inventories Forecast
The American Petroleum Institute (API) is scheduled to release its weekly inventories today and crude oil inventories are expected to increase by 0.8 million barrels for the week ending on 20th January 2012.
Gasoline stocks are expected to rise by 2.0 million barrels and distillate inventories are expected to decline by 0.1 million barrels for the last week.
Courtesy: Angel Commodities
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