WTI and Brent crude remains range bound amidst drawdown on US inventories. WTI is stuck in $102-$103 per barrel with strong resistance ahead of the double top just below $105 per barrel, In the US, the rapid inventory build up has slowed while Cushing continues to draw and this together with the expected seasonal pick-up in demand, has seen a rapid rise in net-long positions held by speculative investors such as hedge fundsOn Monday trade, WTI Crude for June delivery is slightly up at $103.07 per barrel while Brent rude w up t $109.60 per barrel.
“The rapid ascent seen this May has slowed over the past couple of days and short-term indicators, such as the five-day moving average, may signal some additional weakness. The key will be Thursday’s inventory report which has been delayed by a day due to the memorial holiday on Monday.
Reflecting global cues, crude oil for June delivery at India’s Multi Commodity Exchange is trading positive at Rs 6112 per barrel in the afternoon session on Monday.
Meanwhile, China factory output data and increased stimulus measures or the economy could boost oil demand growth. China will account for about 11% of global oil demand this year, compared with 21% for the US, International Energy Agency data showed.