Crude oil futures continue downward journey
01/07/2014 09:13
Crude oil futures ended lower in the domestic market on Monday as investors and speculators exited positions in the energy commodity amid speculation that crude supplies from Iraq, the second biggest oil producer in the OPEC may not be disrupted despite a sectarian conflict. While Islamic militants have seized control over Iraq’s northern and western regions, the oil-rich southern part of Iraq, which accounts for more than three-fourth of the country’s total oil production remains safe from violence, easing supply concerns over the fuel. Manufacturing activity in the Chicago region expanded at a weaker pace in June, signaling a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. The Chicago PMI, a gauge measuring manufacturing in the Chicago region fell to 62.6 this month from 65.5 in May, with a reading above 50 signaling expansion. However, the fastest gain in US pending home sales in over four years in May 2014 signaled an upbeat US housing recovery, lifting the demand outlook for the fuel, trimming losses in crude oil futures. The index measuring US pending home sales climbed 6.1 per cent in May 2014 over the previous month. Crude oil futures may rise today as an expansion in Chinese manufacturing lifted the demand outlook for the fuel. At the MCX, Crude Oil futures, for the July 2014 contract, closed at Rs 6,337 per barrel, down by 0.42 per cent, after opening at Rs 6,355, against a previous close of Rs 6,364. It touched an intra-day low of Rs 6,314.
01/07/2014 09:13
Crude oil futures ended lower in the domestic market on Monday as investors and speculators exited positions in the energy commodity amid speculation that crude supplies from Iraq, the second biggest oil producer in the OPEC may not be disrupted despite a sectarian conflict. While Islamic militants have seized control over Iraq’s northern and western regions, the oil-rich southern part of Iraq, which accounts for more than three-fourth of the country’s total oil production remains safe from violence, easing supply concerns over the fuel. Manufacturing activity in the Chicago region expanded at a weaker pace in June, signaling a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. The Chicago PMI, a gauge measuring manufacturing in the Chicago region fell to 62.6 this month from 65.5 in May, with a reading above 50 signaling expansion. However, the fastest gain in US pending home sales in over four years in May 2014 signaled an upbeat US housing recovery, lifting the demand outlook for the fuel, trimming losses in crude oil futures. The index measuring US pending home sales climbed 6.1 per cent in May 2014 over the previous month. Crude oil futures may rise today as an expansion in Chinese manufacturing lifted the demand outlook for the fuel. At the MCX, Crude Oil futures, for the July 2014 contract, closed at Rs 6,337 per barrel, down by 0.42 per cent, after opening at Rs 6,355, against a previous close of Rs 6,364. It touched an intra-day low of Rs 6,314.
