Energy Preview: Crude Drops After EIA Data Records Increase In US Stockpiles

The WTI Crude oil futures fell yesterday after the Energy Information Administration EIA reported higher crude stocks. A bout of strength in the US dollar and record US crude output also weighed on the commodity. The prices fell further today and currently trade at $ 53.89 per barrel, down 0.22% on the day. MCX Crude oil futures ended at Rs 3870 per barrel and should ease further today.

US crude oil inventories for the week ended February 1, excluding the Strategic Petroleum Reserve, increased by 1.3 million barrel from the previous week. At 447.2 million barrel, US crude oil inventories are about 6% above the 5-year average for this time of year. EIA said total motor gasoline inventories increased by 500,000 bbl and are about 5% above the 5-year range. Crude stocks at the Cushing, Oklahoma, delivery hub also rose by 1.4 million barrels, EIA said.