Oil surges on supply risks, US demand outlook
26/09/2014 09:23
Crude oil futures surged in the domestic market on Thursday as investors and speculators booked fresh positions in the energy commodity tracking a firm trend in the overseas market amid concerns that tensions in the Middle East may disrupt crude supplies from the region. US and Arab warplanes struck small refineries controlled by Islamic State extremists in eastern Syria, the US Defence Department said. Further, capital goods orders rebounded in the US last month while services continued strong expansion in September, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel. Bookings for non-defence capital goods excluding aircraft, a proxy for future capital spending, climbed 0.6 per cent in August 2014 over the prior month, when it fell 0.2 per cent. The gauge measuring US services activity stood at 58.5 in September, compared to 59.5 in August, but well above the neutral 50 mark signaling strong expansion. The number of Americans who filed for unemployment benefits last week crept up less than expected as companies retained workers amid an improving economy, supporting the demand outlook for the fuel. US jobless claims rose 12,000 to 293,000 last week, compared to forecasts for a rise to 296,000. Crude oil futures may trade lower today amid caution ahead of US GDP data. At the MCX, Crude Oil futures, for the October 2014 contract, closed at Rs 5,714 per barrel, up by 1.49 per cent, after opening at Rs 5,640, against a previous close of Rs 5,630. It touched an intra-day high of Rs 5,772.
26/09/2014 09:23
Crude oil futures surged in the domestic market on Thursday as investors and speculators booked fresh positions in the energy commodity tracking a firm trend in the overseas market amid concerns that tensions in the Middle East may disrupt crude supplies from the region. US and Arab warplanes struck small refineries controlled by Islamic State extremists in eastern Syria, the US Defence Department said. Further, capital goods orders rebounded in the US last month while services continued strong expansion in September, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel. Bookings for non-defence capital goods excluding aircraft, a proxy for future capital spending, climbed 0.6 per cent in August 2014 over the prior month, when it fell 0.2 per cent. The gauge measuring US services activity stood at 58.5 in September, compared to 59.5 in August, but well above the neutral 50 mark signaling strong expansion. The number of Americans who filed for unemployment benefits last week crept up less than expected as companies retained workers amid an improving economy, supporting the demand outlook for the fuel. US jobless claims rose 12,000 to 293,000 last week, compared to forecasts for a rise to 296,000. Crude oil futures may trade lower today amid caution ahead of US GDP data. At the MCX, Crude Oil futures, for the October 2014 contract, closed at Rs 5,714 per barrel, up by 1.49 per cent, after opening at Rs 5,640, against a previous close of Rs 5,630. It touched an intra-day high of Rs 5,772.
