Crude weak, US inventories up 3.1% on year - 4 May 2017

WTI Crude oil continued to extend its slide under $ 50 per barrel amid weak equities and elevated US inventories. WTI futures are quoting at $ 47.73 per barrel right now, down 0.2 percent on the day.

The commodity has not been able to witness any buying support recently. MCX Crude ended down half a percent at Rs 3,070 per barrel and should slip further 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.

US crude production increased 0.3 percent to 9.29 million bpd with a 5.2 percent increase over the year which caused renewed concerns over production trends after smaller increases in the previous two weeks.

Gasoline inventories recorded a build of 0.2 million barrels on the week and are 0.2 percent below year-ago levels. Distillate recorded a draw of 0.6 million barrels with a year-on-year decline of 4.2 percent.

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