Energy Preview: MCX futures bounce from lows near Rs 4800 per barrel

WTI Crude oil futures bounced from a four year low near $55 per barrel after US equities jumped following a pause on the elevated US tariffs. The counter zoomed around 5% but seems to be correcting now as elevated US Crude inventories capped upside. The Energy Information Administration (EIA) released its weekly report yesterday, revealing a rise in the number of barrels of commercial crude oil held by US firms. The Crude inventories rose by 2.6 million barrels to 442.3 million barrels in the week ended April 4, 2025. This followed a spike of 6.165 million barrels in last week. However, Product supplied of gasoline, a proxy for demand, fell to 8.4 million bpd from 8.5 million bpd in the previous week, thereby triggering some worries over near term US demand trends and pulled oil lower. WTI Crude currently trades at $60.87 per barrel, down around 2.40% on the day. Market is now waiting for the EIA monthly report to get more insights on the state of global and US oil market trends. On the MCX, Crude oil futures ended at Rs 5327 per barrel, up 2.50% on the day after testing a low near Rs 4800 per barrel.

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