Crude oil drops on depreciated Rupee

Nymex crude oil slipped 2.2 percent yesterday mainly taking cues from a stronger dollar and rise in US crude oil inventories. Prices touched an intra-day low of $110.30/bbl and closed at $111.05/bbl. Depreciation in the Indian Rupee led minimal losses on the MCX. Crude oil May contract on the MCX touched an intra-day low of `4951/bbl and closed at `4975/bbl yesterday.
API Inventory Data

According to the report released by the American Petroleum Institute (API) on Tuesday, US crude oil inventories increased sharply by 3.2 million barrels in the week ending 29th April. Gasoline inventories also rose 680,000 barrels, while distillate inventories decreased by 1.5 million barrels in the last week.
EIA Inventory Forecast

The US Energy Department (EIA) is expected to release its weekly inventory data later in the evening today. The US crude oil inventories are likely to increase as crude imports rose faster than refineries demand. According to the Reuters poll, crude oil inventories are expected to increase by 2 million barrels for the week ended 29th April. Distillates stocks are predicted to increase by 0.6 million barrels and gasoline inventories are also expected to increase by 0.3 million barrels in the last week.
Outlook

Crude oil prices are expected to trade lower today on account of strength in the dollar and choppy sentiments in the global financial markets. Oil will also come under pressure on expectations of rise in US crude oil inventories to be released by the EIA today.
Courtesy: Angel Commodities

(Source: http://www.commodityonline.com/futures-trading/technical/Crude-oil-drops-on-depreciated-Rupee-23561.html)