Crude oil futures stayed under pressure hovering in the range of $92-97 a barrel since last 2 weeks, fixed between the rising dollar and the rally in equity market.
The U.S. dollar strengthened Friday, trading at its best levels in 10 months after a Federal Reserve official projected the possible timing of a winding down of the Fed’s bond buying. The ICE dollar index, which measures the greenback’s movement against six other major currencies, sat at 83.895, up from 83.758 on Thursday.
The greenback fell during Thursday’s session following a climb in U.S. weekly jobless claims, mixed signals from the housing market, and data showing conditions in the Philadelphia region’s manufacturing sector worsened this month.
The ICE dollar index was on track for a rise of roughly 1% for the week, benefitting in part from a fall in the euro after disappointing first-quarter gross domestic product reports from France, Germany and the euro zone.
Crude oil for June delivery is trading down 17 cents at $ 94.99 per barrel on the New York Mercantile Exchange. It settled up 86 cents, or 0.9%, to $95.16 a barrel.
Prices had been trading higher, then briefly turned lower after the Philadelphia Federal Reserve said its business-conditions index sank to -5.2 from 1.3 in April.
Earlier Thursday, the Labor Department said the consumer-price index fell by a seasonally adjusted 0.4%. The inflation rate over the past 12 months fell to 1.1% in April, marking the lowest level since November 2010.
Separately, the Labor Department said initial jobless claims climbed by 32,000 to a seasonally adjusted 360,000 in the week ended May 11, compared with economists’ expectations for a rise to 330,000.
MCX May crude oil futures may open today’s session near Rs 5190 levels with support around Rs 5170-5140 levels.
Source by Commodity Insights
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