Nymex crude oil prices increased by 1.5 percent on Tuesday, taking cues from unexpected fall in US crude oil inventories coupled with a weaker dollar.
Prices touched an intra-day high of $99.13/bbl and closed at $98.40/bbl in yesterday’s trading session.
On the MCX, prices increased by 1.8 percent and closed at Rs.4858/bbl after touching an intra-day high of Rs.4885/bbl on Tuesday.
API Inventories Data
As per the American Petroleum Institute (API) report last night, US crude oil inventories declined sharply by 4.5 million barrels for the week ending on 3rd February 2012.
Gasoline inventories increased by 4.4 million barrels and distillate inventories also rose by 386,000 barrels for the same week.
EIA Inventories Forecast
The US Energy Department (EIA) is scheduled to release it weekly inventories report today and crude oil inventories are expected to increase by 2.4 million barrels for the week ending on 3rd February 2012.
Gasoline stocks are expected to increase by 700,000 barrels whereas distillate inventories are expected to decline by 700,000 barrels for the same period.
Outlook
We expect crude oil prices to trade higher today, on account of a weaker dollar coupled with positive sentiments in the markets. However, expected rise in US crude oil inventories will cap sharp gains in oil prices.
Courtesy: Angel Commodities
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