Energy Preview: Crude Recovers From One Week Low

Crude oil futures tested near one week low amid weakness in equities and strength in US dollar. However, good buying emerged thereafter and the counter currently trades at $ 68.44 per barrel, up half a percent on the day. MCX Crude oil futures closed at Rs 4554 per barrel, up half a percent on the day. Weak Rupee is also turning a key factor for local crude futures.

US crude oil inventories increased last week ending April 20, and the refining sector fell 328,000 barrels per day from the previous weeks average, the US Energy Information Administration (EIA) said in a report on Wednesday. According to the Weekly Petroleum Status Report, U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, of the week ending April 20 increased by 2.2 million barrels from the previous week.

At 429.7 million barrels, US crude oil inventories are in the lower half of the average range for this time of the year. Total products supplied over the past four-week period averaged over 20.4 million barrels per day, up by 4.3% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.4 million barrels per day, up 1.3% from the same period last year.