Tuesday, 4 June 2013

Oil Dips Below $93; API Data Due

Oil.........

Crude oil futures dipped below $93 a barrel in the mixed movement in the Asian equities today. The traders also await the API data later today.
Crude for July delivery fell 42 cents, or 0.5%, to $93.03 in electronic trade during Asian trading hours on the New York Mercantile Exchange. Yesterday, it rose $1.48, to settle at $93.45 a barrel
Most Asian markets endured wide swings between gains and losses Tuesday as buying in the wake of an overnight advance on Wall Street was countered by concerns over China’s growth trajectory.
Oil prices on Monday climbed 1.6% following better-than-expected May readings on manufacturing activity throughout Europe, and as political instability in the Middle East fed supply concerns.
After the close of trade on the New York Mercantile Exchange on Tuesday, investors will receive a weekly update about U.S. crude inventories. Analysts polled by Platts expect crude-oil stocks to have declined by 1 million barrels during the week ended May 31. Analysts also forecast a rise of 1 million barrels in gasoline stocks, and an increase in distillate stocks by 1.4 million barrels.
The American Petroleum Institute is scheduled to release its weekly report at 4:30 p.m. U.S. Eastern time. The more closely watched data from the U.S. Energy Information Administration is due Wednesday at 10:30 a.m. Eastern time.
Last week, crude supplies, as reported by the EIA, unexpectedly jumped 3 million barrels to 397.6 million barrels, bringing inventory to the highest level since the EIA began collecting data in 1978.
Despite high production from the Organization of the Petroleum Exporting Countries and the U.S., oil ministers at an OPEC meeting Friday agreed to keep their output target at 30 million barrels a day for the rest of the year, with many members expressing satisfaction with current price levels of about $100 a barrel for Brent crude.
MCX June crude oil futures may open today’s session near Rs 5250 levels with support around Rs 5205 and Rs 5170 levels.
Source by Commodity Insights

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