Nymex crude oil prices traded higher by more than 5.5 percent on Monday mainly on the back of weakness in the US dollar. Prices touched an intra-day high of $103.40/bbl and closed at $102.55/bbl. On the MCX, oil prices gained around 0.2 percent and touched an intra-day high of `4575/bbl yesterday. Appreciation in the Indian Rupee capped further gains on the domestic bourses on Monday. CME Group, the world's largest commodities exchange, has increased crude futures margin for the fourth time since February. The margin will increase by 25 percent as of closing on May 10. The cumulative increase in margins on US crude West Texas Intermediate (WTI) positions since February is 67 percent to $6,250 per contract from the previous$3,750. API Inventory Data today The American Petroleum Institute (API) will release its weekly inventory data later at midnight today. As per Reuters poll, crude oil inventories are expected to increase by 1.3 million barrels in the w/e 5th May 2011. Distillates, which include heating oil and diesel, are expected to increase by 0.5 million barrels. Gasoline inventories are expected to decline by 0.1 million barrels in the same week. The US crude oil inventories are likely to increase as crude oil imports again outpaced refinery demand. Outlook We expect crude oil to trade lower today on account of margin hike, strength in the dollar and choppy sentiments in the global financial markets. Oil will also come under pressure on expectations of rise in US crude oil inventories to be released by the API today. Courtesy: Angel Commodities

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