Continued rise in US production and a gain in oil products inventories kept crude oil under check yesterday. The WTI futures are witnessing thin buying after the recent drop under $50 per barrel and are currently down half a percent at $49.36 per barrel. This should lead to another choppy session on MCX today. MCX Crude oil futures ended with modest gains yesterday, closing just above Rs 3200 per barrel levels.
The latest Energy Information Administration (EIA) data recorded an inventory draw of 3.64 million barrels for the week ending April 21st, following a draw of 1.04 million barrels last week. Crude inventories declined to 528.7 million barrels, but are still 3.8% above year-ago levels and there has still been only a limited reduction from recent record highs.
Cushing inventories recorded a draw of 1.20 million barrels on the week, the second successive draw. Domestic crude production increased 0.1% for the week to 9.27 million bpd from 9.25 million previously which was a 3.7% increase over the year.
Gasoline inventories recorded a build of 3.4 million barrels on the week after a 1.5 million increase last week and inventories are now only fractionally below year-ago levels. Distillate recorded a build of 2.7 million barrels with a year-on-year decline of 4.6%.
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