Oil tumbles as US supplies rise
18/09/2014 09:25
Crude oil futures slumped in the domestic market on Wednesday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market after US crude oil stockpiles rose the most in five months, signaling weakening fuel demand in the world’s biggest oil consumer.
US crude stockpiles climbed 3.67 million barrels to 362.3 million barrels last week, the first increase in five weeks, the EIA said. American refineries processed 16.3 million barrels per day of crude last week, down 0.2 per cent from the prior week.
Crude also came under pressure after the US Federal Reserve raised its estimates for interest rates at the end of next year by 25 basis points, clouding the demand outlook for the fuel.
Investors cast aside robust US housing data which showed that US homebuilder sentiment surged to the highest level since November 2005 in September 2014. The NAHB said that its housing market index rose to 59 this month from 55 in August, with a reading above 50 signaling a favourable outlook on home sales.
Crude futures may continue the downward journey as the first rise in US oil supplies in five weeks signaled weakening fuel demand.
At the MCX, Crude Oil futures, for the September 2014 contract, closed at Rs 5,732 per barrel, down by 1.09 per cent, after opening at Rs 5,791, against a previous close of Rs 5,795. It touched an intra-day low of Rs 5,714.
18/09/2014 09:25
Crude oil futures slumped in the domestic market on Wednesday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market after US crude oil stockpiles rose the most in five months, signaling weakening fuel demand in the world’s biggest oil consumer.
US crude stockpiles climbed 3.67 million barrels to 362.3 million barrels last week, the first increase in five weeks, the EIA said. American refineries processed 16.3 million barrels per day of crude last week, down 0.2 per cent from the prior week.
Crude also came under pressure after the US Federal Reserve raised its estimates for interest rates at the end of next year by 25 basis points, clouding the demand outlook for the fuel.
Investors cast aside robust US housing data which showed that US homebuilder sentiment surged to the highest level since November 2005 in September 2014. The NAHB said that its housing market index rose to 59 this month from 55 in August, with a reading above 50 signaling a favourable outlook on home sales.
Crude futures may continue the downward journey as the first rise in US oil supplies in five weeks signaled weakening fuel demand.
At the MCX, Crude Oil futures, for the September 2014 contract, closed at Rs 5,732 per barrel, down by 1.09 per cent, after opening at Rs 5,791, against a previous close of Rs 5,795. It touched an intra-day low of Rs 5,714.
