Crude for July delivery gained 33 cents, to $93.63 a barrel in electronic trade after the American Petroleum Institute reported a drop in crude supplies that was nearly 8 times of what analysts had expected.
Before the API data were released late Tuesday, the July crude contract shed 14 cents, or 0.2%, on the New York Mercantile Exchange.
The trade group said crude supplies fell 7.8 million barrels for the week ended May 31. Analysts polled by Platts were, on average, looking for a decline of 1 million barrels.
The market will look for inventory data from the U.S. Energy Information Administration at 10:30 a.m. Eastern.
Investors have been concerned about high inventory. Last week’s EIA report showed total crude supplies at 397.6 million barrels, bringing inventory to the highest level since at least 1978, the year when the agency said it began collecting the data.
The API late Tuesday also said weekly gasoline inventories declined by 1.3 million barrels while distillate stockpiles rose by 241,000 barrels. Analysts were looking for a climb of 1 million barrels in gasoline inventories and a rise of 1.4 million barrels in distillate supplies.
MCX June crude oil futures may open today’s session near Rs 5300 levels with resistance near Rs 5330 and Rs 5370 levels.
Source by Commodity Insights
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