Crude oil futures surged in the domestic and overseas market on Wednesday as investors and speculators booked fresh positions in the energy commodity as a weaker dollar boosted the demand for the fuel as an alternative asset. Weaker greenback makes crude cheaper for those holding other currencies, thus bolstering demand. Further, better than expected US stockpiles data eased fears over a worsening global supply glut. While US crude supplies rose for a sixteenth week on the trot to a record high, those at Cushing, the US’ largest oil storage hub fell. EIA said that US crude supplies climbed 1.91 million barrels to 490.9 million barrels in the week ended April 24, 2015, compared to analysts estimates of a 3.3 million barrels uptick. Meanwhile, stockpiles at Cushing fell by 514,000 barrels to 61.7 million barrels last week. Refineries in the US operated at 91.3 per cent of their capacity, up from 91.2 per cent in the last week, signaling a pickup in fuel desired. Investors shrugged off tepid US GDP data which showed that the world’s biggest economy grew only 0.2 per cent in Q1 following a 2.2 per cent increase in the previous quarter with gains in consumer spending slowing to 1.9 per cent from 4.4 per cent in Q4.

Mcx commodity tips
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal as a weaker dollar boosted the demand for the precious metal as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand. Further, the US Federal Reserve stuck to its record low interest rate policy stance amid slowing growth in the world’s biggest economy, bolstering the appeal of the bullion as a store of value. The Fed re-iterated that it will undertake a maiden US interest rate lift-off since 2006, only when it sees improvement in the labour market while it saw inflation moving back to the 2 per cent goal gradually. With the economy barely growing up in Q1 and consumer spending & job gains slowing, analysts have pared back expectations of an initial rate rise to September from June earlier. Gold may extend gains today amid dimming expectations of a near-term US rate hike.
Research via Investor Advisor is a leading financial services providing company and has its existence in Indian market as well as global capital markets. Research via is Investment Advisory Company that provides and delivers high profitable returns on stock, nifty, commodity, share tips and Derivatives Tips – Futures and Options, Commodity Tips – MCX, NCDEX and COMEX, Forex Tips – Domestic and International