Oil Takes Another Tumble, Prices Approach Near Recent Lows

Rising US Crude oil production continued to make crude oil suffer today as the WTI Crude futures slipped near its seven week low yet again. The counter currently trades at $ 66.22 per barrel, down 1.22% on the day. MCX Crude oil futures also extended losses under Rs 4500 per barrel and currently trade at Rs 4455 per barrel, down 1.37% on the day. EIA data showed yesterday that the US Crude inventories fell 3.6 million barrels in the week to May 25. Refinery crude runs rose 527,000 barrels per day to 17.2 million bpd as utilization rates jumped 2.1 percentage points to 93.9% of total capacity, the highest runs and rates since January, EIA data showed. In a key data the Gasoline stocks rose by 534,000 barrels. Demand for the fuel over the past four weeks rose 0.8% year-on-year ahead of the Memorial day weekend which marks the official start to the summer driving season in the United States. Distillate stockpiles, which include diesel and heating oil also rose by 634,000 barrels. Net US crude imports fell last week by 959,000 bpd as exports jumped 431,000 bpd to 2.2 million bpd. Crude stocks at the Cushing, Oklahoma, delivery hub for WTI fell 556,000 barrels, EIA said. US Crude production continued to set a weekly record high, edging up to 10.8 million bpd.