Commodities » Energy

Nymex March Crude Oil prices ended in the red to close at $76.98/bbl on Wednesday

Contributed by Angel Broking

By Amar Singh, Reena Walia Nair (Angel Broking)

MARKET RECAP

Crude Oil prices ended in the red yesterday as strength in the dollar and a bigger-than-forecast rise in oil stockpiles led prices lower. Oil supplies rose 2.32 million barrels to 329 million last week. Stockpiles of gasoline and distillate fuel, a category that includes heating oil and diesel fell. The US Energy Department data indicates that refineries operated at the lowest rate in more than a year as fuel demand lagged behind year-earlier levels. Refineries operated at 77.7% of capacity, the lowest rate since at least 1989. This excludes two periods of hurricane strikes along the Gulf of Mexico.

OUTLOOK

Oil prices could trade with a negative bias as a rise in inventories could add pressure on prices. The US Energy Department showed a rise in crude oil inventories yesterday. The commodity could face further downside pressure on the back of strength in the dollar.

Today, we could witness sideways move in crude oil prices with support for NYMEX March Crude Oil is seen at $76.30/$75.65 level & resistance at $77.85/$78.80 levels.