Crude Oil
WTI oil prices declined by 1.8 percent on Tuesday to close at $45.8 per ounce although the reports of partial pipeline outage and bets in New Jersey and hopes of positive U.S. inventory data helped oil offset bearish sentiment in financial markets.
Colonial Pipeline indicated that a possible leak caused it to shut part of its operation, including a line with capacity to carry 850,000 barrels of gasoline and distillates from North Carolina to its New Jersey hub. However, crude prices did not react much to the news.
On the MCX, oil prices declined by 0.4 percent to close at Rs.3031 per barrel.
EIA inventory forecast
The U.S. Energy Information Administration estimated on average that crude stocks were down 500,000 barrels in the week ended Sept. 18. Gasoline stocks were seen up 800,000 barrels, while distillate inventories, which include heating oil and diesel fuel, were forecast to have risen 1.3 million barrels.
Outlook
The fundamentals of supply and demand remain bearish for the commodity, although the EIA report due tonight is expected to show drawdown in crude inventories. The reports of pipeline outage in the US might support prices for today.
On the MCX, oil prices are expected to trade lower today.
Contributed by Angel Broking
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