Energy Preview: Oil Supported On Chinese Economic Cues, MCX Futures Above Rs 4400 Level

WTI Crude oil futures stayed supported following a good set of economic data from China. Chinas economy grew at 6.8% in the first quarter, buoyed by strong consumer demand, healthy exports and robust property investment. Data also showed that Chinas March retail sales rose 10.1% from a year earlier, rising at the strongest pace in four months. This kept the WTI Crude afloat above $ 67 per barrel. The tailwinds have been supportive for oil following the Middle East worries and the prices are quoting just below their three year highs. MCX Crude oil futures edged up amid good follow up buying yesterday and closed above Rs 4400 per barrel.

Chinas central bank lowered the reserve requirement ratio for most commercial banks on Tuesday, to free up funds for lending and improve liquidity as the economy sustained growth momentum in the first quarter. In a statement, the Peoples Bank of China said it reduced the ratio of cash that banks should hold as reserves, by 100 basis points, with effect from April 25. The rate is currently at 17% and 15%.