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May 17, 2012, 12.54 PM IST | Source: Moneycontrol.com

Crude may trade on a range bound note today: Angel

Angel Commodities has come out with its report on Crude Oil and Natural Gas. According to the research firm, Crude Oil prices are expected to trade on a range bound note on the back of rising US crude oil inventories.

Angel Commodities has come out with its report on Crude Oil and Natural Gas. According to the research firm, Crude Oil prices are expected to trade on a range bound note on the back of rising US crude oil inventories.

Crude Oil: Nymex crude oil prices declined by 1.2 percent on Wednesday on the back of more than expected rise in US crude oil inventories coupled with Euro Zone debt worries. Additionally, strength in dollar index and weak market sentiments also exerted further downside pressure on oil prices. Crude oil touched an intra-day low of $ 91.81/bbl and closed at $ 92.8/bbl in yesterday’s trading session. On the domestic bourses, prices declined by 0.7 percent and closed at Rs.5,048/bbl after touching an intra-day low of Rs.5,003/bbl on Wednesday.

EIA Inventories Data: As per the US Energy Department (EIA) report released yesterday, US crude oil inventories raised more than expected by 2.1 million barrels to 381.6 million barrels which for the week ending on 11th May, 2012. Crude oil inventories output is at highest level nearly in 22 years. Gasoline stocks dropped by 2.8 million barrels to 204.3 million barrels and whereas distillate stockpiles also declined by 1.0 million barrels to 119.8 million barrels for the last week.

Natural Gas: EIA Natural Gas Inventory Forecast: US Energy Information Administration (EIA) is scheduled to release its weekly inventories and US natural gas inventories are expected to increase by 25 billion cubic feet (bcf) for the week ending on 11th May 2012.

Outlook: In today’s trading session, we expect crude oil prices to trade on a range bound note on the back of rising US crude oil inventories and Europe’s debt concerns will lead to downside in prices but on the other hand, better GDP data from Japan will act as a supportive factor for crude oil prices.

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