Oil Slips Ahead Of Supply Data

Oil........
Crude oil futures slipped in the Asia electronic session today giving back the gains of nearly $2 yesterday ahead of the API supply data. The mixed movement in Asian equities may also drag on the prices.
Japanese and Australian stocks rose Tuesday after upbeat manufacturing reports from the U.S. and the euro zone, while Hong Kong shares retreated on weakened activity at Chinese factories.
Australia’s S&P/ASX 200 rose 1.5%, while Japan’s Nikkei Stock Average climbed 1.1%, and Taiwan’s Taiex inched up 0.1%. Hong Kong’s Hang Seng Index fell 0.4%, and South Korea’s Kospi slipped 0.1%, while the Shanghai Composite gave up 0.5%.
Their gains came as stocks on Wall Street ended higher after the Institute for Supply Management reported an increase in its manufacturing index, and the euro-zone’s Purchasing Managers’ Index (PMI) for June climbed to a 16-month high.
Crude futures for August delivery are trading down 5 cents at $97.88 a barrel in electronic trade on the New York Mercantile Exchange. Yesterday, it rose $1.43, or 1.5%, following reports of stronger manufacturing activity in the euro zone and the U.S. in June.
Investors were awaiting cues on energy supplies from a weekly report on U.S. crude-oil stockpiles. Figures were due later Tuesday at 4:30 p.m. U.S. Eastern time from the American Petroleum Institute, with a report from the Energy Information Administration slated for Wednesday.
U.S. commercial crude-oil stocks likely fell 3 million barrels in the week ended June 28, according to a Platts survey of analysts. The projected fall would be “in line with seasonal norms, as shown by the week-on-week change in the Energy Information Administration’s five-year average,” Platts said.
Analysts were also expecting a 1-million-barrel build in gasoline stocks, and a 1.3-million-barrel increase in distillate stocks.
MCX July crude oil futures may open today’s session near Rs 5800 levels with support around Rs 5745 levels.
Source by Commodity Insights