Crude oil continues uptrend on US inventory data

Crude oil prices (Nymex June futures) were up by more than 1.5 percent in the last week. Oil prices gained on the back of weakness in the dollar, decline in US crude oil inventories and positive sentiments in the global markets.

Goldman Sachs raised its forecasts for North Sea Brent crude quoting that fuel demand growth will provide support to oil prices.

However, prices came under pressure mid-week due to poor GDP and jobless claims data from the US. On the MCX, the June futures contract gained almost 1 percent and touched a high of Rs 462 5/bbl.

Natural gas

Natural Gas Inventories increased

Gas prices surged around 4.5 percent on the Nymex mainly due to a weaker dollar and upbeat global market sentiments. But, rise in US natural gas inventories capped further gains.

Report released by the US Energy Department showed that natural gas stocks increased more than expected by 105 billion cubic feet lbcf) for the week ending 21 May.

Prices touched a high of S4.563/mmBtu and close at $4.5 18/mmBtu. On the MCX, natural gas rallied more than 7percent and closed at RS 205.3 in the last week.

Outlook

Oil prices on the M are expected to trade on a rangebound note today as us markets remain closed on account of Memorial Day Holiday.

Prices will take cues from news and development on the Euro Zone front and risk sentiments in the global financial markets.

Courtesy: Angel Commodities

Source: http://www.commodityonline.com/futures-trading/technical/Crude-oil-continues-uptrend-on-US-inventory-data-23958.html