Weak US supplies data weighs on crude oil futures
25/06/2014 09:20
Crude oil futures ended with slim losses in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity after a report said that US crude oil stockpiles rose last week, signaling weak demand for the fuel in the world’s biggest crude oil consumer. US crude oil stockpiles rose 4 million barrels last week, the API said. However, concerns that violence in Iraq amid the attack by Sunni militants may crimp oil supplies from OPEC’s second biggest crude producer curbed losses in the fuel. Consumer confidence in the US rose to the highest level since January 2008 in June 2014 while sales of new homes climbed at the fastest pace in 22 years in May 2014, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel, trimming losses in crude futures. The gauge measuring US consumer confidence rose to 85.2 in June from 82.2 in the previous month. US new home sales rose 18.6 per cent to a 504,000 annualized pace in May 2014. Crude oil futures may rise today as an improving US economic outlook lifts demand for the fuel. At the MCX, Crude Oil futures, for the July 2014 contract, closed at Rs 6,400 per barrel, down by 0.08 per cent, after opening at Rs 6,387, against a previous close of Rs 6,405. It touched an intra-day low of Rs 6,370.
Crude oil futures ended with slim losses in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity after a report said that US crude oil stockpiles rose last week, signaling weak demand for the fuel in the world’s biggest crude oil consumer. US crude oil stockpiles rose 4 million barrels last week, the API said. However, concerns that violence in Iraq amid the attack by Sunni militants may crimp oil supplies from OPEC’s second biggest crude producer curbed losses in the fuel. Consumer confidence in the US rose to the highest level since January 2008 in June 2014 while sales of new homes climbed at the fastest pace in 22 years in May 2014, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel, trimming losses in crude futures. The gauge measuring US consumer confidence rose to 85.2 in June from 82.2 in the previous month. US new home sales rose 18.6 per cent to a 504,000 annualized pace in May 2014. Crude oil futures may rise today as an improving US economic outlook lifts demand for the fuel. At the MCX, Crude Oil futures, for the July 2014 contract, closed at Rs 6,400 per barrel, down by 0.08 per cent, after opening at Rs 6,387, against a previous close of Rs 6,405. It touched an intra-day low of Rs 6,370.
