Crude crashes near five month low - 5 May 2017

Oil prices tumbled to their lowest in nearly five months on worries about a persistent global glut. WTI Crude oil has continued to extend its slide under $ 50 per barrel amid weak equities and elevated US inventories.

The commodity dropped nearly 5 percent yesterday, ending near $ 54 per barrel. MCX Crude ended down around 2 percent, sliding well under Rs 3,000 per barrel mark. The counter ended around Rs 2,930 levels and should skid sharply in early moves today.

The latest Energy Information Administration (EIA) data recorded an inventory draw of 0.93 million barrels for the week ending April 28th. Although crude inventories declined to 527.8 million barrels, stocks are 3.1 percent above year-ago levels. Cushing inventories recorded a third successive draw with a decline in stocks of 0.78 million barrels on the week.

Large speculators and traders sharply trimmed their net positions in the WTI crude oil futures markets last week following three weeks of gains, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC).

The non-commercial contracts of WTI crude futures, traded by large speculators and hedge funds, totaled a net position of 411,822 contracts in the data reported through April 25th.

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