Crude oil tumbles on Middle East unrest

Nymex crude oil prices traded lower by almost 0.5 percent on Monday on news that US forces had killed Osama Bin Laden. Additionally, Saudi Arabia increased its crude oil output to around 8.5 million barrels per day (bpd) in April from the previous 8.3 million bpd in March to meet the ever-increasing demand. The country had cut down its production by 800,000 bpd in March mainly on the back of oversupply of oil in the markets. This eased supply concerns and led to pressure on crude oil.
Prices touched a high of $114.83/bbl and closed at $113.52/bbl. On the MCX, oil prices gained around 0.3 percent and touched an intra-day high of `5097/bbl yesterday.
API Inventory Data today

The American Petroleum Institute (API) will release its weekly inventory data later at midnight today. As per Reuters poll, crude oil inventories are expected to increase by 1.9 million barrels in the w/e 29th April 2011.
Distillates, which include heating oil and diesel, are expected to increase by 1.2 million barrels. Gasoline inventories are also expected to increase by 0.6 million barrels in the same week. The US crude oil inventories are likely to increase as crude oil imports again outpaced refinery demand.
Outlook
Crude oil prices are expected to trade lower today on account of easing concerns in the Middle East, 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 API today.
Courtesy: Angel Commodities

(Source: http://www.commodityonline.com/futures-trading/technical/Crude-oil-tumbles-on-Middle-East-unrest-23531.html)