Precious Metals Preview: Oil Looks Sideways

Crude oil eased after the US Energy Information Administration (EIA) downplayed the effect of Venezualan crisis on the broad oil markets. The EIA has noted that the US imports of Venezuelan crude oil have decreased in recent years as production in Venezuela declined. Recently announced US sanctions directed at Venezuelas energy sector and state oil company, Petrn++leos de Venezuela, SA (PDVSA), will essentially eliminate US imports of Venezuelan crude oil as the full effects of the sanctions emerge. However, the US Energy Information Administration (EIA) does not anticipate any significant decrease in US refinery runs as a result of these sanctions. US imports of Venezuelan crude oil have been falling for several years and refineries have been replacing Venezuelan crude oil with other heavy crude oils. However, bargain buying capped losses and the counter ended up 0.11% at $ 52.70 per barrel in last session. MCX Crude oil ended at Rs 3760 per barrel, up 0.89% on the day.