Crude Oil
WTI oil prices surged by 1.8 percent and Brent witnessed a decline of 2.3 percent on Wednesday to close at $46.3 and $47.4 per barrel respectively.
US crude stocks saw an unexpected gain of 4.7 million barrels to 455.4 million in the week to August 28, the biggest one-week rise since April.
Also adding pressure was news that President Barack Obama has the backing of enough Senate votes to sustain a veto of any congressional resolution blocking Iran's agreement on its nuclear program with world powers.
Implementing the agreement will allow sharp increase Iran's oil exports now curbed by sanctions. On the MCX, oil prices declined by 0.8 percent to close at Rs.3034 per barrel.
EIA inventory forecast
The US Energy Information Administration said US commercial crude stocks had increased by 4.7m barrels to 455.4m barrels in the week to August 28 as refineries processed less crude and imports rose EIA data showed gasoline inventories fell 271,000 barrels, much less than the 1.3 million-barrel slide expected by analysts.
Outlook
On an intraday basis, we expect oil prices to fall continuing its weakness from the previous trading session as rising US stocks along with caution ahead of ECB pres conference will exert pressure.
On the MCX, oil prices are expected to trade lower today.
Contributed by Angel Broking
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