Crude Oil
WTI oil prices declined by 0.2 percent on Tuesday to close at $45.9 per barrel. U.S. crude fell slightly in volatile trade, reopening from Monday's U.S. markets closure for the Labor Day holiday to news of refinery outages.
API's weekly inventory report, usually due on Tuesdays, will be issued on Wednesday this time due to Monday's Labor Day holiday. The official report on weekly stockpiles, due on Wednesdays from the U.S. Energy Information Administration, will be delayed till Thursday.
Also weighing on Brent was the growing potential for Iran to flood the oil market with more supply as the Obama administration gained further congressional support in its campaign to lift nuclear-related sanctions on Tehran crude exports.
On the MCX, oil prices rose by 3.4 percent to close at Rs.3049 per barrel.
Outlook
On an intraday basis, we expect oil prices to trade higher today on bargain hunting at lower levels. On the contrary the major fundamentals of the commodity remain bearish with Iran’s potential to supply more oil.
The crude inventory data due to be released by the EIA tomorrow will be a close watch for investors on stock of inventories.
Contributed by Angel Broking
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