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Last Updated : 05 January 2013 at 10:15 IST

MCX Crude Oil opens a tad up on global cues

Source :Bloomberg

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Crude oil prices gained on Friday in New York as US employers hired more workers than expected signalling the recovery trend in economy; and most importantly, a job-inclusive recovery.

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  • MUMBAI (Commodity Online): On India's MCX, crude oil for delivery on 21 January 2013 was seen trading at Rs.5118 a barrel, a gain of 0.1% in the opening minutes.

    Crude oil prices gained on Friday in New York as US employers hired more workers than expected signalling the recovery trend in economy; and most importantly, a job-inclusive recovery.

    The US Department of Labour data suggest that payrolls climbed by 155,000 in numbers for December against the 152,000 forecast. The futures in crude oil had been depressed for a while as US Energy Department reported a 7.14 million barrels inventory uptrend. This trend did not sustain as payroll data came in.

    “The payroll number is stronger than expected and it gives the market a boost,” said Rich Ilczyszyn, chief market strategist and founder of Iitrader.com in Chicago to Bloomberg, “The large build in gasoline and distillates put a lid on oil prices.”

    Brent crude oil for delivery on February 13, 2013 closed shutters at $111.42 a loss of $0.72 or 0.64% as of yesterday. Its trans-Atlantic counterpart WTI crude oil for delivery on the same date was seen closing at $93.08, a gain of $0.17 or 0.18%.

    “Refineries were trying to lower their crude inventories for tax purposes at the end of year,” saidChris Barber, a senior analyst at Energy Security Analysis Inc. in Wakefield, Massachusetts to Bloomberg News.

    “So I don’t think the drop is a really bullish sign, especially when you see product stocks build.” he said.

    US gasoline stocks jumped by 2.57 million barrels to 225.7 million in the week ended Dec. 28 even as crude stocks dipped 11.1 million barrels to reach 359.9 million.

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