Crude oil futures slip on easing Iraq fears
24/06/2014 09:05
Crude oil futures ended lower in the domestic market on Monday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market amid fears of easing supply concerns. While militants in Iraq have captured a sizeable territory in the country’s north, the oil-rich southern part which accounts for nearly three-fourth of the country’s oil output has remained untouched from the unrest, easing worries over disruption in crude supplies from the OPEC’s second biggest producer. Further, the Iraqi government regained control of the Al Waleed border crossing into Syria and the Traibil passageway near Jordon, media reports said. Manufacturing in the US expanded at the fastest pace in over four years in June 2014 while existing home sales climbed in May, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel, curbing losses in crude futures. The gauge measuring US manufacturing rose to 57.5 in June from 56.4 in May, with a reading above 50 signaling expansion, Markit said. US existing home sales rose 4.9 per cent to a 4.89 million annualized rate in May. Crude oil futures may fall today amid speculation that Iraq’s crude supply maybe unaffected by the violence. At the MCX, Crude Oil futures, for the July 2014 contract, closed at Rs 6,405 per barrel, down by 0.85 per cent, after opening at Rs 6,470, against a previous close of Rs 6,460. It touched an intra-day low of Rs 6,391.
24/06/2014 09:05
Crude oil futures ended lower in the domestic market on Monday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market amid fears of easing supply concerns. While militants in Iraq have captured a sizeable territory in the country’s north, the oil-rich southern part which accounts for nearly three-fourth of the country’s oil output has remained untouched from the unrest, easing worries over disruption in crude supplies from the OPEC’s second biggest producer. Further, the Iraqi government regained control of the Al Waleed border crossing into Syria and the Traibil passageway near Jordon, media reports said. Manufacturing in the US expanded at the fastest pace in over four years in June 2014 while existing home sales climbed in May, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel, curbing losses in crude futures. The gauge measuring US manufacturing rose to 57.5 in June from 56.4 in May, with a reading above 50 signaling expansion, Markit said. US existing home sales rose 4.9 per cent to a 4.89 million annualized rate in May. Crude oil futures may fall today amid speculation that Iraq’s crude supply maybe unaffected by the violence. At the MCX, Crude Oil futures, for the July 2014 contract, closed at Rs 6,405 per barrel, down by 0.85 per cent, after opening at Rs 6,470, against a previous close of Rs 6,460. It touched an intra-day low of Rs 6,391.
