Crude Oil
Nymex oil prices surged by around 2 percent and Brent jumped by more than 3 percent on Tuesday to close at $45.2 and $47.5 per barrel respectively. Gains were witnessed as a result of expectations that data would show an accelerated slowdown in U.S. oil-production growth, despite global economic headwinds that could weigh on demand.
However, U.S. inventories showed a weekly buildup that far exceeded analyst expectations. The American Petroleum Institute (API) said late on Tuesday that U.S. crude oil stockpiles rose by 4.6 million barrels to 457.8 million barrels in the week to Sept. 25.
On the MCX, oil prices surged by 2 percent to close at Rs.3026 per barrel.
Outlook
Oil prices are likely to trade lower today as U.S. inventories showed a weekly buildup that far exceeded analyst expectations only added up to bearish fundamentals for the commodity with slowdown in China and oversupplies from the OEPC as well as Non-OPEC nations. Also, investors will cautiously await EIA oil stocks report due tonight.
On the MCX, oil prices are expected to trade lower today.
Contributed by Angel Broking
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