Crude oil inventories increased by 360,000 barrels in the last week – US Energy Department.
Nymex crude oil prices closed at $76.56/bbl on Wednesday.
MARKET RECAP
Crude oil prices declined more than 1% on the Nymex yesterday to close at $76.56/bbl. A surprise increase in inventories in the US in the week ending July 16th, exerted pressure on the commodity prices. Moreover, the strength in the US dollar index (DX) also made the crude oil prices look expensive for holders of other currencies.
The US Energy department reported yesterday that crude oil inventories increase by 360,000 barrels to 353.5 million barrels in the last week. Markets were expecting the inventories to decline by 1.1 million barrels. The American Petroleum Institute (API) had reported that crude oil inventories decreased by 241,000 barrels in the week ending July 16th. In the earlier two weeks, crude oil inventories had declined by 5 million barrels each, as per the Energy department report.
OUTLOOK
Crude oil prices are expected to trade with a negative bias today taking cues from the movement in the DX. The stronger DX will exert pressure on the commodity prices. Moreover, concerns over rising inventories in the US will also be a bearish factor for the crude oil prices today. Support for NYMEX September Crude Oil is seen at $75.65/$74.45 levels & resistance at $77.10/$78.00 levels. Natural Gas MCX July contract has major support at Rs. 208.00 & resistance at Rs 222.00 levels.
