Crude oil turned negative after stockpiles increased last week

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Crude oil turned negative after stockpiles increased last we
On 11th May 2011 (wednesday), crude oil futures prices gained in the morning session, touched a high of Rs. 4,674.00 per barrel on the MCX, on the back of concern that flooding on the Mississippi could hit the U.S. Gulf Coast refining hub.

But, trading sentiment turned bearish in the evening trading session after the Energy Information Administration (EIA) reported that the U.S. crude oil stockpiles increased by 3.78 million barrels to 370.3 million barrels in the week ended May 6, 2011.

Gasoline inventories unexpectedly climbed by 1.28 million barrels to 205.8 million, while the total fuel consumption dropped by 0.9 per cent to 18.2 million barrels a day, the lowest level since June 2009.

Moreover, the concern over further increase in interest rates by the China also added a downward pressure on crude oil futures prices.

At the MCX, crude oil future for May contract closed at Rs. 4,451.00 per barrel, down by 3.44 per cent, after opening at Rs. 4,620.00 against the previous closing price of Rs. 4,610.00. It touched the intra-day low of Rs. 4,422.00 with a business volume of 207,252 lots.

Crude oil for June contract, at the NYMEX, closed at US$98.21 per barrel, down by $5.67, after opening at US$103.69 against the previous closing price of US$103.88. It touched the intra-day low of US$97.50 with a business volume of 439,607 lots.

Read more about: oil and gas, crude, futures, mcx
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