Nymex crude oil prices declined around 0.8 percent yesterday on the back of restart of crude oil production in Gulf of Mexico. Further, rising concerns regarding the default of the US government on account of resolved debt ceiling issue exerted downside pressure on prices.
However, sharp downside in prices was restricted as a result of weakness in the DX. Crude oil prices touched an intra-day low of $101.86/bbl and closed at $103.03/bbl in yesterday’s trading session.
On the domestic bourses, prices slipped by 0.2 percent and closed at Rs.6,376/bbl after touching a low of Rs.6,312/bbl on Monday. Sharp downside in prices was restricted on account of Rupee depreciation.
API Inventories Forecast
The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to increase by 1.4 million barrels for the week ending on 4th October 2013.
Gasoline stocks are expected to shoot up by 1.1 million barrels and distillate inventories are expected to drop by 1.3 million barrels for the same week.
From the intra-day perspective, we expect crude oil prices to trade lower on the back of forecast for rise in API crude oil inventories. Further, weak global markets as a result of rising concerns regarding the default in the US government over its debt ceiling issue will exert downside pressure on prices. Additionally, restart of crude oil production in Gulf of Mexico after easing of Tropical Storm Karen will act as a negative factor. However, sharp downside in prices will be prevented as a result of weakness in the DX.
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TheEquicom Financial Research Pvt. Ltd.
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