Nymex crude oil traded higher by 0.4 percent on Tuesday on the back of positive economic data that raised risk appetite.
Dollar weakness also supported oil prices. The commodity also remains supported from regional unrest which has toppled leaders in Tunisia and Egypt and has spread to other countries like Libya, Bahrain, Iran, Oman, Algeria, Yemen and Syria.
Output from Libya has witnessed a decline from 1.6 million barrels a day last year to around 390,000 barrels a day in the month of March.
API Inventory Data
According to the report released by the American Petroleum Institute (API) on Tuesday. Us crude oil inventories increased by 667,000 barrels in the week ending 1sth April. Gasoline inventories declined 1.8 million barrels, while distillate inventories decreased by 3.4 million barrels in the last week.
ETA Inventory Forecast
The Us Energy Department (EIA) is expected to release its weekly inventory data later in the evening today. The US crude oil inventories are likely to increase as crude Imports rose faster than refineries demand. According to the Reuters poll, crude oil inventories are expected to increase by 1.1 million barrels for the week ended 1sth April. Distillates stocks are predicted to remain unchanged at 150.8 million barrels and gasoline inventories are also expected to decrease by 1.5 million barrels in the last week.
Outlook
We expect crude oil prices to trade with a positive bias on account of improved market sentiments on the back of upbeat economic data from the US yesterday. Risk appetite has put pressure on the dollar and this factor too will support a rise in oil prices today. Since inventories are expected to show a rise we feel sharp gains in the commodity would be capped.
