NYMEX crude oil prices declined 0.4 percent on Tuesday mainly on the back of unfavorable economic data from the US coupled with choppy sentiments in the global equity markets.
But sharp decline was not witnessed due to dollar weakness and decline in the US crude oil inventories yesterday.
Prices touched an intra-day low of $95.02/bbl and closed at $96.9 J/bbl. On the MCX, crude oil May contract declined more than 1.5 percent mainly due to Rupee appreciation and touched aan intra-day low oft4297Jbbl on Tuesday.
API Inventory Data
According to the report released by the American Petroleum Institute (APII on Tuesday, us crude oil inventories declined sharply by 2.7 million barrels in the week ending 13* May. Gasoline inventories declined 676,000 barrels, while distillate inventories also decreased by 2.8 million barrels in the last week.
EIA 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 I million barrels for the week ended 13* May.
Distillates stocks are predicted to increase by 0.7 million barrels and gasoline inventories are also expected to increase by 0.8 million barrels in the last week.
Outlook
we expect crude oil to trade higher today mainly taking cues from dollar weakness and revival in the global financial markets. But sharp gains will be capped due to expected rise in the US crude oil inventories.
