The U.S. Energy Information Administration on Wednesday reported that U.S. crude-oil supplies fell 6.3 million barrels for the week ended May 31, to 391.3 million barrels. Late Tuesday after the Nymex trading session ended, the American Petroleum Institute a reported 7.8 million-barrel drop in crude supplies.
Oil traders have been concerned about high U.S. inventory. Last week’s EIA report showed total U.S. crude supplies at 397.6 million barrels, which brought the inventory to the highest level since at least 1978, the year when the agency said it began collecting the data.
Crude for July delivery rose 18 cents at $93.92 a barrel in electronic trade during Asian hours on the New York Mercantile Exchange. Yesterday, it tacked on 43 cents, or 0.5%, to settle at $93.74 a barrel after trading as high as $94.48. Prices had lost 0.2% on Tuesday.
The ADP jobs report arrived ahead the Friday release of the government’s own employment report, and a weak reading there could further dim energy-market sentiment. But before Friday’s figures, the European Central Bank on Thursday is expected to reduce its economic forecasts, and ECB President Mario Draghi is due to speak about conditions in the troubled euro-zone economy.
Ahead of the ECB updates, the U.S. dollar turned slightly lower against major rivals. A weaker greenback tends to aid oil and other commodities denominated in dollars, as it makes them less expensive for holders of other currencies.
MCX June crude oil futures are trading nearly Rs 15 at Rs 5346 per barrel. The counter should find good support near Rs 5325 levels with resistance near Rs 5390 levels.
Source by Commodity Insights
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