Losses mount for oil on OPEC bets
12/11/2014 09:19
Crude oil futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity tracking a weaker trend in the overseas market amid rising speculation that the OPEC may resist calls to cut output when it meets in Vienna later this month, even as prices continue to slide deeper into the bear market.
UAE Energy Minister said on Tuesday that the oversupply in global markets “didn’t come from us”; while Saudi Arabia and Kuwait have signaled that they are unlikely to cut production. OPEC members have been cutting export prices to maintain market share amid surging US production.
Speculation that US oil supplies rose for a sixth straight week signaled weakening demand for the fuel in the world’s biggest oil consumer. US oil supplies may have risen 1.1 million barrels last week, the EIA may say today.
However, a rise in small business confidence in the US last month signaled a pickup in the world’s biggest economy, supporting the demand outlook for the fuel, trimming losses in crude futures. The gauge measuring US small business confidence rose to 96.1 in October from 95.3 in September, the NFIB said.
Crude oil futures may continue the downward journey today amid caution ahead of US stockpiles data.
At the MCX, Crude Oil futures, for the November 2014 contract, closed at Rs 4,773 per barrel, down by 0.21 per cent, after opening at Rs 4,761, against a previous close of Rs 4,783. It touched an intra-day low of Rs 4,716.
12/11/2014 09:19
Crude oil futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity tracking a weaker trend in the overseas market amid rising speculation that the OPEC may resist calls to cut output when it meets in Vienna later this month, even as prices continue to slide deeper into the bear market.
UAE Energy Minister said on Tuesday that the oversupply in global markets “didn’t come from us”; while Saudi Arabia and Kuwait have signaled that they are unlikely to cut production. OPEC members have been cutting export prices to maintain market share amid surging US production.
Speculation that US oil supplies rose for a sixth straight week signaled weakening demand for the fuel in the world’s biggest oil consumer. US oil supplies may have risen 1.1 million barrels last week, the EIA may say today.
However, a rise in small business confidence in the US last month signaled a pickup in the world’s biggest economy, supporting the demand outlook for the fuel, trimming losses in crude futures. The gauge measuring US small business confidence rose to 96.1 in October from 95.3 in September, the NFIB said.
Crude oil futures may continue the downward journey today amid caution ahead of US stockpiles data.
At the MCX, Crude Oil futures, for the November 2014 contract, closed at Rs 4,773 per barrel, down by 0.21 per cent, after opening at Rs 4,761, against a previous close of Rs 4,783. It touched an intra-day low of Rs 4,716.
