Crude oil prices rallied on Wednesday mainly on the back of better-than-expected US macroeconomic data. Oil prices gained more than 3.5 percent on the Nymex, hitting an intra-day high of $84.25/bbl yesterday.
Favorable employment figures coupled with improvement in consumer confidence led to bullish sentiments.
The US Energy Department (EIA) reported yesterday that crude oil inventories in the US unexpectedly increased by 1.0 million barrels to reach 358.6 million barrels in the week ending 19th November. Gasoline inventories rose by 1.9 million barrels while distillate inventories declined by 0.5 million barrels in the same week.
Natural Gas Inventories decline
Natural gas prices gained on Wednesday after report from the US Energy Department indicated a decline in natural gas storage of the US.
Natural gas stocks declined by 6 billion cubic feet (bcf) for the week ending 19th November. On the MCX, gas prices gained almost 2 percent on Wednesday, as depreciation of the Indian Rupee further supported a rise in prices.
Outlook Crude Oil
We expect crude oil prices to trade on a weaker note today as the commodity will mainly take cues from the dollar movement as the US equity markets are closed on account of a bank holiday today.
