Crude Oil Drops On Surge In Stockpiles On Wednesday

Crude Oil News - Crude oil prices fell by 1.27 per cent on Wednesday as an industry estimate of US stockpiles showed an unexpected gain. The American Petroleum Institute said crude inventories rose 2.3 million barrels, well above the 2.5 million barrels drop seen. Separately, Wednesday's government report could show that crude stockpiles nationwide fell by 2.0 million barrels last week for the week ending on Dec. 11. 

At the MCX, Crude oil futures for December 2015 contract were trading at Rs. 2,487 per barrel, down by 1.27 per cent, after opening at Rs. 2,490 against the previous closing price of Rs. 2,519. It touched the intra-day low of Rs. 2,482 till the trading.
 

When the Federal Open Market Committee completes its two-day meeting on Wednesday, the US central bank is widely expected to lift short-term interest rates for the first time in nearly a decade. An interest rate hike is viewed as bullish for the dollar. Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.