WTI Crude Witnesses Modest Resistance Around Two Week Top

24 Mar 2022 , 06:09 PM

WTI Crude surged around 5% to approach $115 per barrel mark yesterday and consolidated today mixed to cautious equities capped advances. Oil market stayed well supported as Russia warned a major oil pipeline could be out of service for more than a month due to storm damage, amplifying supply shortfalls caused by the war in Ukraine. Media reports noted that the Caspian Pipeline Consortium, a system that carries oil from West Kazakhstan and Russian oil producers to the Black Sea, said in a statement Tuesday that an inspection revealed damage to a marine terminal.

Oil also tracked as falling US inventories. The US crude oil stockpiles fell yet again, the Energy Information Administration said on Wednesday. Crude oil inventories declined by 2.508 million barrels last week. Distillate stockpiles, which include diesel and heating oil also fell by 2.071 million barrels while Gasoline inventories fell 2.947 million barrels last week. The Crude-oil stockpiles in the US are now about 13% below the five-year average, the EIA said. However, the recent run up has now bought the commodity near a two week high and therefore some selling is emerging in the counter. WTI Crude is currently trading down 0.28% at $114.54 per barrel. MCX Crude oil futures are trading at Rs 8777 per barrel, up 0.53% on the day after hitting a high of Rs 8858 per barrel.

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