Crude oil futures slipped from their intraday highs today, recording first loss in four sessions as the US dollar was broadly higher against most of its major counterparts and traders booked some profits ahead of the US crude inventories data due later in evening today. The Asian equities ended on a mixed note while the European stocks eased, ensuring that oil extends a drop from two and half month high of $94.34 per barrel in the last session. 

The Spanish 10 year bond yields rose near 7% today as investors eyed the European Central Bank for signs of further action to counter the effects of the euro zone's debt crisis. Though there are growing expectations that the European Central Bank and the US Federal Reserve will announce monetary stimulus measures to boost their respective recoveries, till the time some direct action is seen, markets would be skeptical.

As per the American Petroleum Institute (API) report last night, US crude oil inventories decline more than expected by 5.4 million barrels for the week ending on 3rd August 2012. Gasoline inventories rose around 417,000 barrels and whereas distillate inventories also gained by 2.4 million barrels for the same week. Traders are expecting a similar show in the weekly inventories data from the US department of energy today. 

WTI Crude quotes at $93.22, down 45 cents per barrel right now. The counter recorded impressive gains this week after breaking above its 100 day Exponential Moving Average though the current setback indicates that some moderation could be due. MCX Crude oil futures for August are trading at Rs 5164, down Rs 9 per barrel on the day. Prices could drop towards Rs 5100 in the evening moves.

Powered by Commodity Insights