Crude oil futures also tumbled along with other commodities and slump in the Asia, US and European equities after the World Bank cut its 2013 global growth estimate.
The World Bank cut its 2013 global growth forecast to 2.2% expansion in 2013, down from a 2.4% projection issued in January and below last year's estimated 2.3% growth. In its semiannual Glob
Crude oil for July delivery fell 62 cents to $95.24 a barrel in electronic trade, wiping out Wednesday’s advance that came despite downbeat oil-market data. U.S. crude-oil futures were also affected as traders await the reports about consumer and labor-market activity in the U.S., with implications for energy demand.
Oil on Thursday was under pressure although the U.S. dollar declined against major rivals. A decline in the dollar tends to help dollar-denominated oil and other commodities, as it makes them less expensive to holders of other currencies.
With high levels of U.S. oil inventory and weak energy demand in focus, investors will assess U.S. retail sales data for May, as well as weekly jobless claims. Signs of improvement in the economy could be supportive for crude prices.
The government reports are due at 8:30 a.m. U.S. Eastern time. The oil market has received bearish updates this week, with the U.S. Energy Information Administration saying Wednesday that crude-oil supplies rose by 2.5 million barrels for the week ended June 7, to 393.8 million barrels.
The International Energy Agency said China, the world’s second-largest oil consumer, will use less oil this year than previously expected, although its total oil demand will grow by 3.8%.
MCX June crude futures are trading up Rs 3 at Rs 5563 per barrel. It may face a resistance near Rs 5590 levels with support around Rs 5510 levels.
Source by Commodity Insights
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