MCX Crude July futures may fall to Rs 7,750/bbl this week; rising USD ahead of US CPI data dents sentiment
WTI crude futures ended the previous week down more than 3% and closed at $104.79 per bbl. The oil market has been very volatile in the past few days as investors continue to weigh prospects of slowing fuel demand even as supply remains tight. A covid resurgence in China also prompted sell-off on fears of more lockdowns in the world’s top crude importer. Demand concerns rose as major central banks across the globe are determined to rein in inflation with aggressive rate hikes, which might weigh on spending and fuel demand.
Meanwhile, US Crude oil inventories rose 8.2 million barrels for the week ended 1st July, while much of that inventory came from the SPR release of 5.8 million barrels. Money managers have decreased their bullish Nymex WTI crude oil bets to the least in 2 years, by 42,354 net-long positions to 200,957, weekly CFTC data showed.
