The unresolved of the US debt crisis and the unexpected rise in the crude oil inventories dragged on the crude futures, taking it near $99 a barrel.
Republican and Democrats continued to bicker yesterday, with the US less than a week away from a partial default on its $14.3 billion debt. Economists and the head of the IMF warned of dire consequences if the dispute is not resolved by August 2nd.
The U.S. Congress faced more uncertainty as Republican leaders delayed action on a plan to raise the ceiling, narrowing the chances for a deal to avert a debt default. That uncertainty helped drive gold to an all-time high for the sixth time in two weeks on Wednesday, while stock markets and base metals fell.
U.S. crude stocks rose unexpectedly last week, as refinery operations fell, weekly data from oil industry group American Petroleum Institute showed. Crude stocks rose by 4 million barrels.
In the latest data releases today, the Australia's second-quarter consumer price index inflation hit 0.9%, compared to a rise of 1.6% in the March quarter, the Australian Bureau of Statistics reported. South Korea's second-quarter gross domestic product growth eased to 0.8% from the previous quarter, the Bank of Korea reported Wednesday.
MCX August crude oil may open today's session below Rs 4400 with a support expected around Rs 4350 levels.
