Easing supply concerns weigh on crude oil
futures
03/07/2014 09:24
Crude oil futures ended lower in the domestic market on Wednesday as investors and speculators exited positions in the energy commodity amid speculation that output in Libya, the biggest holder of Africa’s oil reserves will increase after rebels agreed to reopen two export terminals including the Es Sider and Ras Lanuf facilities. However, US crude supplies fell last week, signaling a pickup in fuel demand in the world’s biggest crude consumer, curbing losses in the fuel. US crude stockpiles fell 3.16 million barrels to 384.9 million barrels in the week ended June 27, EIA said. Refineries upped their operating rate to the highest level in five months at 91.4 per cent last week. US petroleum demand rose 626,000 barrels per day to 19.4 million barrels per day last week. US factory orders fell in May, down 0.5 per cent over the previous month, signaling an uncertain outlook for the world’s biggest economy, clouding the demand prospects for the fuel. However, bullish payrolls data bolstered the demand outlook for the fuel, curbing losses in crude futures. American companies added 281,000 workers in June, up from 179,000 in the previous month. Crude oil futures may trade on a cautious note today ahead of the US non-farm payrolls data to be released today. At the MCX, Crude Oil futures, for the July 2014 contract, closed at Rs 6,238 per barrel, down by 1 per cent, after opening at Rs 6,309, against a previous close of Rs 6,301. It touched an intra-day low of Rs 6,232.
03/07/2014 09:24
Crude oil futures ended lower in the domestic market on Wednesday as investors and speculators exited positions in the energy commodity amid speculation that output in Libya, the biggest holder of Africa’s oil reserves will increase after rebels agreed to reopen two export terminals including the Es Sider and Ras Lanuf facilities. However, US crude supplies fell last week, signaling a pickup in fuel demand in the world’s biggest crude consumer, curbing losses in the fuel. US crude stockpiles fell 3.16 million barrels to 384.9 million barrels in the week ended June 27, EIA said. Refineries upped their operating rate to the highest level in five months at 91.4 per cent last week. US petroleum demand rose 626,000 barrels per day to 19.4 million barrels per day last week. US factory orders fell in May, down 0.5 per cent over the previous month, signaling an uncertain outlook for the world’s biggest economy, clouding the demand prospects for the fuel. However, bullish payrolls data bolstered the demand outlook for the fuel, curbing losses in crude futures. American companies added 281,000 workers in June, up from 179,000 in the previous month. Crude oil futures may trade on a cautious note today ahead of the US non-farm payrolls data to be released today. At the MCX, Crude Oil futures, for the July 2014 contract, closed at Rs 6,238 per barrel, down by 1 per cent, after opening at Rs 6,309, against a previous close of Rs 6,301. It touched an intra-day low of Rs 6,232.
