The U.S. Commerce Department reported yesterday that trade gap shrank to US$43.7 billion in April 2011 from a revised US$46.8 billion in March 2011. The improvement in trade deficit caused by the petroleum gap which narrowed to US$26.1 billion in April 2011 from US$30.2 billion in March 2011. Hence, optimism of US economic recovery supported the oil prices in the international as well as domestic market.
Moreover, the Organization of Petroleum Exporting Countries (OPEC) failed to increase the production quotas for the first time in at least 20 years at its meeting in Vienna on June 8, 2011. The four countries, including Saudi Arabia, Kuwait, Qatar and the United Arab Emirates, proposed to increase the production target by 1.5 mb/d to 30.3 mb/d from the current 28.8 mb/d, while six nation including Libya, Angola, Ecuador, Algeria Iran and Venezuela opposed to increase the supply.
At the MCX, crude oil future for June contract on Thursday closed at Rs. 4,548.00 per barrel, up by 0.58%, after opening at Rs. 4,524.00 against the previous closing price of Rs. 4,522.00. It touched the intra-day high of Rs. 4,575.00 with a business volume of 151,888 lots.
Crude oil for July contract, at the NYMEX, closed at US$101.93 per barrel, up by $1.19, after opening at US$100.83 against the previous closing price of US$100.74. It touched the intra-day high of US$102.44 with a business volume of 484,275 lots.