Crude Fails To Hold Above $94 Ahead Of US Data

Oil....

MCX Crude oil futures slipped in intraday moves today, easing after gains in the last session as traders booked profits amid a largely positive undertone in the global equity markets. Upbeat reports on Chinese economic front and a weak dollar initially supported the commodity in Asian trades but the sentiments weakened in afternoon and the benchmark WTI futures are quoting at $93.80, down 40 cents per barrel on the day.

Oil started on a positive note as stocks edged up in Asia. Chinese General Administration of Customs reported that the imports surged 14.1% from a year earlier in March. The country recorded a trade deficit of $880 million in March, swinging from February's $15.2 billion surplus. The exports went up by 10% from March 2012. The gains in equities resulted in a continued moderation in the US dollar. The greenback slipped to a five week low above 1.3100 levels against the Euro.

Crude futures edged up yesterday, adding 84 cents, or 0.9%, to $94.20 a barrel on the New York Mercantile Exchange, as traders eyed a 6.3 richer scale earthquake in Iran. However, the oil supplies data from American Petroleum Institute calmed the overall trading scenario.

Crude oil supplies were up 5.1 million barrels in the last week, according to data from the American Petroleum Institute. The total stocks for the week ended March 29 were also upwardly revised by more than 500,000 barrels. The API also noted that gasoline stockpiles last week unexpectedly rose to 1.96 million barrels, while distillate stockpiles fell by 1.3 million barrels.

WTI futures found it difficult to hold on above $94 per barrel in electronic trades today as traders eyed a key supplies report from the US department of energy tonight. MCX Crude oil came down from highs of Rs 5132 per barrel and currently trades at Rs 5107, unchanged on the day with 18.40% increase in the open interest.
Source by Commodity Insights