NYMEX crude trades marginally higher above $57 per barrel supported by API weekly report. API noted a 5.2 million barrels decline in US crude oil stocks as against market expectations of 3.5 million barrels decline.
API also noted a bigger than expected 2.85 million barrels decline in distillate stocks. Gasoline stocks however registered a bigger than expected 2 mn bbl rise. Focus now will be on US EIA weekly report due later today at 2100 IST. Focus will be on US crude stocks and crude oil production. US crude production stands at record high level and is expected to rise further.
Also supporting crude price are supply concerns due to closure of Forties pipeline in North Sea since Dec.11. Its operator Ineos said on Tuesday that it will take two to four weeks to repair the pipeline. The pipeline carries around 450,000 barrels per day of Forties crude to Britain.
Crude has also benefitted from weaker US dollar and upbeat US economic data. The US dollar weakened as sharp surge in German bond yield pushed euro higher. The US housing starts and building permits data released yesterday was better than expectations.
Crude may remain rangebound to positive ahead of EIA inventory report today.