Crude oil remained volatile this month and was pressured in earlier part of this month, due to high unemployment in US and a weak housing market which indicated towards the slowdown of U.S. economy.

However, positive comments from ECB improved the market sentiments although it is expected global recovery will be slow. Economic data released from euro zone was better than expected and that led to a strong rebound in euro against dollar.

Dollar also weakened against the other major currencies which provided a boost to crude oil prices. Market sentiments improved at the end of month with positive economic data coming out from US. Crude oil's rally accelerated as equities surged after strong earnings reports, better­than­expected existing homes sales data.

Existing home sales dropped 5.37M in June as compared to 5.66M in the previous month. This was better than the market expectations as consensus was for a decline of 5.2M. The U.S. Energy Information Administration showed that U.S. crude and fuel inventories rose across the board after two weeks of tightening supplies.

Oil stockpiles rose by 400,000 barrels in the week ended July 16, as compared to expectations of 1.3­million­barrel decline.

Courtesy: Religare Commodities

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