Hot Commodities: WTI Crude Spikes Near $70, OPEC Meet In Focus

WTI Crude oil futures extended their amazing form to test near three year highs on ideas that Saudi Arabia would be aiming for crude to rise to $ 80 per barrel. Markets are also focusing on the upcoming OPEC meet tomorrow. About 20 OPEC and non-OPEC oil ministers will meet in Jeddah, Saudi Arabia to discuss their oil production cut deal. Firm equities and weak US dollar also boosted oil in tune with other commodities. WTI futures are currently trading at $ 68.75 per barrel, up nearly 1% on the day. MCX Crude oil futures jumped following this, breaking above Rs 4500 per barrel mark and currently trade at Rs 4545 per barrel, up 1.70% on the day.

US crude oil inventories, excluding the Strategic Petroleum Reserve, dropped 1.1 million bbl for the week ended April 13, according to weekly US Energy Information Administration (EIA) data. The latest estimate is 427.6 million barrel, putting oil in storage in the lower half of the average range for this time of year. The total motor gasoline inventories decreased 3 million barrel but are in the upper half of the average range. Both finished gasoline inventories and blending components inventories decreased last week.

US Business owners are getting nervous about a possible trade war with China, according to the Federal Reserves Beige Book. Outlooks remained positive, but contacts in various sectors including manufacturing, agriculture, and transportation expressed concern about the newly imposed and/or proposed tariffs, the Beige Book noted. Economic activity continued to expand at a modest to moderate pace across the 12 Federal Reserve Districts in March and early April.