Energy Preview: Crude Could See Some Correction

Crude oil futures stayed supported after rebounding from their recent lows on production worries in Venezuela. However, there is a possibility of some profit selling now as recent EIA data showed a build of 2.072 million barrels to 436.584 million barrels for the week ended June 1. Gasoline stockpiles spiked 4.6 million barrels, while distillate stocks rose by 2.2 million barrels, EIA reported this Wednesday. WTI Crude oil futures are currently trading at $ 66.03 per barrel-up marginally on the day. MCX Crude ended at Rs 4443 per barrel – adding good gains.

Consumer credit in the US increased by less than expected in the month of April, according to a report released by the Federal Reserve on Thursday. The Fed said consumer credit rose by USD9.2 billion in April after climbing by $ 12.3 billion in March. The increase in consumer credit was primarily due to growth in non-revolving credit such as student loans and car loans, which rose by $ 7.0 billion in April after soaring by $ 13.4 billion in March. Consumer credit rose by an annual rate of 2.9% in April.

The euro area economy expanded as initially estimated in the first quarter, the latest estimate from Eurostat showed. Gross domestic product (GDP) rose 0.4% sequentially in the first quarter, slower than the 0.7% expansion seen a quarter ago. The rate came in line with the estimate released on May 15. On a yearly basis, GDP growth slowed to 2.5% from 2.8% a quarter ago. Gross fixed capital formation advanced 0.5% following the 1.3% gain seen in the prior period.