U.S. crude oil futures were up more than 4 percent Wednesday afternoon, despite an inventory increase last week, as gasoline and heating oil futures rallied on supportive supply data, and the dollar's weakness attracted buyers.
Gasoline futures extended gains as data from the U.S. Energy Information Administration showed weekly gasoline demand jumped as supplies were drawn down. The U.S. dollar slipped against most major currencies, undermined by a mixed reports suggesting that the U.S. economy was still on a generally stable path to recovery.
Crude oil supplies gained 2.8 million barrels to 338.4 million. Distillate stockpiles, which include heating oil and diesel, rose 323,000 barrels to 171.1 million. That’s a sixth weekly increase even as refinery output and imports dropped. .S. gasoline inventories fell 1.7 million barrels to 211.5 million in the week to Sept. 25.
Nymex October Natural Gas futures ended flat on Wednesday, to close at $5.674/mmbtu.
The rise in oil prices yesterday was sharp and was mainly on the back of a weaker dollar. But fundamentally, the inventory data has again shown a rise, suggesting that demand still remains a major concern. Oil prices could decline today as yesterday’s rally was sharp and oil inventories indicated a subdued demand scenario.
Today, we could witness sideways move in crude oil prices with support for NYMEX October Crude Oil is seen at $67.60/$64.70 level & resistance at $72.10/$73.65 levels.
Natural gas price will take cues from oil prices. Natural gas MCX October contract has major support at 221 & major resistance at 240 levels.
