Crude Oil
WTI oil prices declined by 1.8 percent on Wednesday to close at $38.6 per barrel after a huge drawdown in U.S. crude stockpiles was offset by a larger-than-expected build in gasoline and distillates, which include diesel.
Crude inventories fell 5.5 million barrels in the week to Aug. 21, the biggest one-week decline since early June, according to U.S. government data. Gasoline stocks also rose, by 1.7 million barrels versus forecasts for a 1.3 million-barrel drop. Distillates climbed by 1.4 million barrels, against expectations for a 1.0 million barrels increase.
On the MCX, oil prices rose marginally by 0.1 percent to close at Rs.2610 per barrel.
Natural gas
NYMEX natural gas prices declined by 0.5 percent to close at $2.68 per MMbtu while MCX oil prices rose by 1.19 percent to close at Rs.178 per MMbtu. Late summer warmth that could bump up demand for air conditioning run on gas-fired electricity.
Outlook
Bearish sentiment continues to dominate oil prices, although crude inventories declined heavily for continuous two week in a row. Strengthening dollar will also exert downside pressure on oil prices. However, bargain hunting at lower levels is lifting prices in today session in the international markets.
ON the MCX, oil prices are expected to trade higher today as international markets are up by more than 2 percent.
Contributed by Angel Broking
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