Oil Slippery Ahead Of EIA Report

Oil......
Crude oil futures were trading on a slippery note ahead of the Energy Information Administration report to be released later today. The sentiments were also weakened after the strong US data yesterday increased the chances of early windup of the US monetary stimulus program.
Crude for August delivery is trading down 66 cents at $94.65 a barrel on New York Mercantile Exchange. Oil futures finished Tuesday’s regular session higher by 14 cents, or 0.1%, to settle at $95.32 a barrel, after better-than-expected reports on the housing sector. Also, durable-goods orders in May rose 3.6%.
The contract lost ground after the American Petroleum Institute, in its weekly report on U.S. commercial crude-oil inventories, said supplies were unchanged in the week ended June 21. A Platts survey of analysts had forecast a decline of 2 million barrels.
A more widely watched report from the Energy Information Administration is slated for release at 10:30 a.m. U.S. Eastern time. Last week, the EIA reported an unexpected increase of 300,000 barrels in oil stockpiles to 394.1 million barrels. At that level, the EIA said, inventories were above the upper limit of the average range for this time of year.
The U.S. dollar rose against rivals on Tuesday after a string of strong economic data reinforced expectations the Federal Reserve will move to slow its program of asset purchases later this year.
Strength in the US dollar also pressurized oil futures. The ICE dollar index which measures the U.S. unit against six other major currencies, rose to 82.553 from 82.412 late Monday in North America.
MCX July crude oil futures may open today’s session near Rs 5650 levels with support around Rs 5600 levels. The U.S. Commerce Department is due to release its third estimate of gross domestic product for the first quarter today.
Source by Commodity Insights