Commodities » Energy

By Amar Singh, Reena Walia Nair (Angel Broking)

MARKET RECAP

Crude Oil prices declined from a five-week high yesterday as economic data from the US showed a drop in consumer confidence. For the month of February, consumer confidence index in the US slumped to 46, from a revised 56.5 in January. Another set of data indicated that oil imports in Japan fell 3% in January to 18.13 million kiloliters or around 3.67 million barrels a day from a year earlier. Japan is the world’s third-largest crude consumer after China and the US and this decline in imports from the country raises concern over demand from Japan.

The US Energy Department is expected to release the crude oil inventory data at 9.00 pm IST today. Crude oil supplies are expected to rise 1.9 million barrels for the week ended 19th February from 334.5 million. If inventories rise this week then it will be a fourth consecutive gain. Stockpiles of distillate, a category that includes heating oil and diesel probably fell 1.5 million barrels from 153.3 million the prior week. Gasoline supplies may probably rise 600,000 barrels from 232.1 million.

Crude oil prices will take cues from the oil inventory report. Prices could trade in the red ahead of the report as inventories are expected to rise as per the US Energy Department’s survey. If the data comes in as per expectations then oil prices could slide further. Strength in the dollar could put further pressure on the downside.