Crude oil futures extend losses
02/07/2014 09:32
Crude oil futures closed lower in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity amid diminishing concerns that the sectarian conflict in Iraq may disrupt crude supplies from the OPEC’s second biggest oil producer as the country’s oil-rich southern region remains insulated from the violence. However, a dip in US crude oil stockpiles last week signaled improving demand for the fuel in the world’s biggest crude consumer, trimming losses in crude futures. US crude oil stockpiles fell 875,000 barrels last week, the American Petroleum Institute (API) said. American factories boosted output at a robust pace in June, signaling a revival in the world’s biggest economy after a poor first quarter, lifting the demand outlook for the fuel, curbing losses in crude futures. The gauge measuring US manufacturing stood at 55.3 in June, compared to 55.4 in May, with a reading above 50 signaling expansion, ISM said. US construction spending rose 0.1 per cent in May over the previous month. However, consumer confidence in the US fell as the IBD/TIPP economic optimism index declined to 45.6 in July from 47.7 in the previous month, weighing on crude oil futures. Crude oil futures may trade on a cautious note today ahead of the weekly supplies data. At the MCX, Crude Oil futures, for the July 2014 contract, closed at Rs 6,301 per barrel, down by 0.57 per cent, after opening at Rs 6,356, against a previous close of Rs 6,337. It touched an intra-day low of Rs 6,289.
02/07/2014 09:32
Crude oil futures closed lower in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity amid diminishing concerns that the sectarian conflict in Iraq may disrupt crude supplies from the OPEC’s second biggest oil producer as the country’s oil-rich southern region remains insulated from the violence. However, a dip in US crude oil stockpiles last week signaled improving demand for the fuel in the world’s biggest crude consumer, trimming losses in crude futures. US crude oil stockpiles fell 875,000 barrels last week, the American Petroleum Institute (API) said. American factories boosted output at a robust pace in June, signaling a revival in the world’s biggest economy after a poor first quarter, lifting the demand outlook for the fuel, curbing losses in crude futures. The gauge measuring US manufacturing stood at 55.3 in June, compared to 55.4 in May, with a reading above 50 signaling expansion, ISM said. US construction spending rose 0.1 per cent in May over the previous month. However, consumer confidence in the US fell as the IBD/TIPP economic optimism index declined to 45.6 in July from 47.7 in the previous month, weighing on crude oil futures. Crude oil futures may trade on a cautious note today ahead of the weekly supplies data. At the MCX, Crude Oil futures, for the July 2014 contract, closed at Rs 6,301 per barrel, down by 0.57 per cent, after opening at Rs 6,356, against a previous close of Rs 6,337. It touched an intra-day low of Rs 6,289.
