Crude oil futures dropped on global cues

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{image-18-oil-barrel2(red).jpg www.goodreturns.in}Crude oil futures dropped on Tuesday in the domestic market as the U.S. housing starts declined in April 2011, reducing optimism about the economy growth and fuel demand prospects. Crude future for June contract fell as much as 2.47 per cent to US$95.02 per barrel on the New York Mercantile Exchange (NYMEX) after the U.S.

Census Bureau reported that housing starts fell 10.6 per cent to 523,000 units at an annual pace in April 2011 from the 549,000 units in March 2011.

Oil price also weakened on expectation of increase in the U.S. stockpiles which will report by the Energy Information Administration (EIA) at 09:00 PM IST on May 18, 2011 (Wednesday).

EIA may today show that the U.S. crude oil inventories increased by 1.5 million barrels from 370.3 million barrels, while gasoline stockpiles may rose by 1 million barrels in the week ended May 13, 2011.

At the Multi Commodity Exchange (MCX), crude oil future for May contract closed at Rs. 4,346.00 per barrel, down by 1.70 per cent, after opening at Rs. 4,410.00 against the previous closing price of Rs. 4,421.00. It touched the intra-day low of Rs. 4,297.00 with a business volume of 128,419 lots.

At the NYMEX, crude oil for June contract closed at US$96.91 per barrel, down by 46 cents, after opening at US$96.98 against the previous closing price of US$97.37 per barrel. It touched the intra-day low of US$95.02 per barrel with a business volume of 335,318 lots.

The American Petroleum Institute (API) yesterday reported that the U.S. crude oil inventories climbed by 2.67 million barrels to 369.9 million barrels in the week ended May 13, 2011.

Read more about: crude, oil and gas, futures
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