NYMEX crude trades in a narrow range near $72 per barrel ahead of US EIA weekly inventory report due today at 2000 IST. EIA is expected to note a 0.9 million barrels increase in US crude oil stocks. Apart from stocks, focus will be on US crude production and refinery demand
Ahead of EIA report, American Petroleum Institute (API) noted a 2.13 million barrels decline in US crude oil stocks for the week ended October 12. API also noted an unexpected 3.42 million barrels decline in gasoline stocks but a smaller than expected 0.246 million barrels decline in distillate stocks
Crude is rangebound also as support from gains in US equity market is countered by expectations of higher US output.
US DJIA index rose 2.2% yesterday as upbeat economic data and corporate earnings results reinforced optimism about US economy. Concerns about US-Saudi tensions also eased as US President gave Riyadh benefit of doubt over disappearance of a journalist.
As per latest US drilling activity report, US crude production from shale resources will increase from 7.616 million barrels per day to 7.714 million bpd in November.