Energy Preview: MCX Oil Ends Around Rs 4800 Mark

WTI Crude oil futures extended their update above $ 70 per barrel following US President Trumps withdrawal from the Iran nuclear deal. MCX Crude oil futures closed at Rs 4800 per barrel and seem to be in an excellent run higher following the recent surge. Oil was supported further yesterday after the Energy Information Administration reported a draw of 2.2 million barrels in US crude oil weekly inventories data. Falling gasoline inventories also acted in favor of the commodity as traders eyed the uptick in gasoline demand in the coming summer season. In the week to May 4, gasoline inventories fell by 2.2 million barrels, the EIA reported, which compares with a 1.2-million-barrel increase a week earlier. Gasoline production averaged 9.9 million barrels per day last week, down from the prior week, when refineries produced 10 million bpd. Distillate inventories were also down, by 3.8 million barrels, after a decline of 3.9 million barrels a week earlier. Distillate production last week averaged 5 million barrels daily, unchanged from a week earlier. However, the US oil production likely continued to rise, hitting a fresh record of 10.7 million bpd. Crude stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures rose by 1.4 million barrels, EIA said. Refinery crude runs fell by 75,000 bpd, EIA data showed. Refinery utilization rates fell by 0.7 percentage points to 90.4 percent, pulled down by a decline in Gulf Coast refining.