Oil Slips Ahead Of FOMC Outcome

Oil.......
Crude oil futures slipped along with the weak Asian equities on caution ahead of the Federal Reserve’s monetary-policy decision later in the day.

In Asia today, the Nikkei Stock Average outperformed regional markets by a wide margin, finishing the morning trading session 1.3% higher at 13,169.97. Australia’s S&P/ASX 200 gained 0.4%, and Taiwan’s Taiex added 0.2%. On the downside, the Shanghai Composite fell 1.5%, Hong Kong’s Hang Seng Index dropped 0.8%, and South Korea’s Kospi also eased 0.8%.
Crude for July delivery are trading 8 cents at $ 98.39 per barrel on the New York Mercantile Exchange. Yesterday, it added 67 cents, or 0.7%, to settle at $98.44 a barrel as Mideast tensions supported prices and fall in the crude oil supplies.
U.S. crude supplies dropped by 4.3 million barrels for the week ended June 14, the API said. A Platts survey of analysts forecast a 1 million-barrel decline. Gasoline inventories increased by 900,000 barrels, while distillate stockpiles dipped by 600,000 barrels. Analysts were looking for a rise of 1.2 million barrels in gasoline inventories and an increase of 300,000 barrels in distillate supplies.
More closely watched figures from the U.S. Energy Information Administration (EIA) are due Wednesday at 10:30 a.m. Eastern. Also, Bernanke is scheduled to hold a press conference Wednesday after the conclusion of the Fed’s two-day policy meeting, which will start later Tuesday.
Syria is also in focus for energy investors, with the U.S. saying late last week it would increase aid to Syrian rebels who have been fighting against the regime of President Bashar al-Assad in a bloody civil war. U.S. oil futures on Friday surged 1.2% following the development.
MCX July crude oil futures may open today’s session near Rs 5790 levels with support around Rs 5745 levels.
Source by Commodity Insights