Crude Oil Crushed, MCX Futures Fall 4.5%

Crude Oil Crushed, MCX Futures Fall 4.5%

Heavy losses emerged in crude oil today as MCX Crude oil futures were crushed by morethan 4%. WTI Crude slipped heavily after breaking under $50 per barrel even as globalstocks remained supported in choppy trades. Equities managed to hold up on ideas thatGreek debt had been averted for now. Strength in US dollar and comfortable crudeinventories led to heavy selling pressure on crude right from the start and the commodityquotes at $48.80 per barrel, down 2 dollars per barrel on the day. MCX Crude oil futurestrade at Rs 3072 per barrel, down Rs 143 per barrel or 4.50% on the day.

German Ifo business climate index, a measure of business confidence climbed to 106.8 inFebruary, while it was expected to rise to 107.6. In January, the score was 106.7.Meanwhile, the current conditions index of the survey unexpectedly fell to 111.3, while itwas expected to rise to 112.7. In January's, the reading was 111.7. 

The expectationsmeasure of the survey moved up to 102.5 in February. Three members of the Bank of Japan'spolicy board expressed doubts the BOJ can meet its inflation target because of a slowdownin underlying inflation and falling oil prices, minutes of the bank's January monetarypolicy meeting showed. US dollar remained in a good mood amid these economic cues,lingering around 1.1300 against the Euro right now.

US commercial crude inventories increased by 7.7 million barrels, maintaining a totalUS commercial crude inventory of 425.6 million barrels, the sixth consecutive week of ahigher total than at any time in at least 80 years, according to latest weekly EIA data.Total gasoline inventories increased by 500,000 barrels last week and remain above theupper limit of the five-year average range. Total motor gasoline supplied (the EIA’smeasure of consumption) averaged over 8.6 million barrels a day for the past four weeks,up by 3.5% compared with the same period a year ago.

Distillate inventories decreased by 3.8 million barrels last week and remain in thelower half of the average range. Distillate product supplied averaged 4.2 million barrelsa day over the past four weeks, up by 6.6% when compared with the same period last year.Distillate production averaged more than 4.6 million barrels a day last week, down about100,000 barrels a day compared with the prior week’s production.

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