Energy Preview: Sentiments Supported For Oil

14 Mar 2022 , 12:35 AM

WTI Crude hit 14 year high of $130 per barrel in last week. The break above $100 per barrel in oil is turning into a wild rally as there is no clarity over how and when the Ukraine war will end and the concerns over the Russian oil flows will ebb. United States President Joe Biden has imposed an immediate ban on Russian oil and other energy imports in retaliation for Russias invasion of Ukraine, while the United Kingdom said it would phase out imports by the end of 2022. The US Energy Information Administration or EIA reported yesterday that the US crude inventories fell by 1.9 million barrels for the week ended March 4. At 411.6 million barrels, the EIA said, crude oil inventories are 13 percent below the five-year average for this time of the year. The crude stocks at the Cushing, Okla., Nymex delivery hub also fell by 600,000 barrels for the week, testing lowest since August 2018. Oil eased after this wild spurt and tested a one week low around $105 mark. MCX Crude oil almost hit Rs 10000 per barrel and closed around Rs 8300 per barrel mark.

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