Crude oil prices are likely to snap two-day fall in opening session Fri on falling United States stockpile and as investors may cover short positions at lower level, analysts said.
"Lower US inventories and lower level buying which will push the prices,"
US oil inventories rose by 2.4 million barrels to 459.6 million barrels for week ended Jul 31 against analysts' expectation for an increase by 1.1 million barrels, data by American Petroleum Institute (API) showed.
US oil inventories rose by 4.2 million barrels to 463.9 million barrels for week ended Jul 31 against analysts' expectation for an increase by 1.2 million barrels, data by Energy Information Association (EIA) showed.
Crude oil prices were also supported on short-covering after prices fell to over four-month low, analysts said.
Domestic crude oil prices fell by more than 3% to Rs 2,847 per barrel in past two straight trading sessions, its lowest level since Mar 19 on weak demand from global markets and increasing supplies from OPEC, analysts said.
Crude oil may also be supported after United States jobless claims dropped indicating improving job scenario in the world's biggest economy.
Jobless claims came at 270,000 for the week ended Jul 31 lower than analysts' estimate of 273,000 and 267,000 a week ago, a government data showed.
West Texas Intermediate, the US benchmark, for September delivery slumped1.09% to $44.66 a barrel on the New York Mercantile Exchange Thursday.
Brent, European benchmark for September contract fell 0.14% to $49.52 per barrel, on the London-based ICE Futures Europe Exchange Thursday.
Crude oil for August delivery fell 1.45% to Rs 2,847 per barrel, at the closing of trades Thursday on Multi-Commodity Exchange (MCX).
Crude oil prices for August delivery are likely to find support at Rs 2,787 per barrel and resistance at Rs 2,925 per barrel today on Multi-Commodity Exchange (MCX).
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