Crude could correct ahead of weekend - 23 Dec 2016

Commodity Intraday Tips

Crude Oil stayed supported on Thursday, supported by strong US economic data and continued support above $ 50 per barrel mark.

The US Gross domestic product increased at a 3.5 percent annual rate instead of the previously reported 3.2 percent pace, the Commerce Department said in its third GDP estimate.

This kept WTI futures supported around $ 53 per barrel levels. However, the counter eased in Asian trades amid weak equities. MCX Crude Oil ended just above Rs 3,600 per barrel yesterday and could spin lower today as profit selling hurts the counter ahead of weekend.

Meanwhile, Hydraulic fracturing now accounts for about half of current US crude oil production. Even though hydraulic fracturing has been in use for more than six decades, it has only recently been used to produce a significant portion of crude oil in the United States.

This technique, often used in combination with horizontal drilling, has allowed the United States to increase its oil production faster than at any time in its history.

The US Energy Information Administration (EIA) estimates that oil production from hydraulically fractured wells now makes up about half of total US crude oil production.

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