MCX Tips

Strong manufacturing growth in China and decline in supplies of Crude oil in US resulted in prices getting elevated on NYMEX platform. The truce between Hamas and Israel didn't affect the short term bull run in the prices. Israel and Hamas decided to halt eight days of attacks against each other on Wednesday. World second largest consumer China imported 23% less Crude from Iran.

The total imports of Crude oil from Iran were 458000 barrels per day, as per General Administration of Customs data. The benchmark Light Sweet Crude oil for January delivery tested a weekly high of $ 89.28 per barrel and settled at $ 88.28 per barrel, up 1.5%. From the lows of $ 84.53 per barrel on 7 November 2012, Crude oil has made a steady progress on the back of geopolitical tensions.

After Israel and Hamas it was Egypt where protests began between supporters and opponents of Egypt President Mohammed Morsi gave himself sweeping new powers. Supporters and opponents clashed on the streets across the country days after a cease fire were declared between Israel and Hamas militants in the Gaza Strip.

Energy Information Administration (EIA) last night reported a surprise decline in Crude Oil inventories. The weekly oil report from the Energy Information Administration revealed U.S. crude oil inventories decreased by 1.50 million barrels and gasoline stocks shed 1.50 million barrels in the week ended November 16.