Oil collapses deeper into bear market on OPEC
26/11/2014 09:24
Crude oil futures tumbled on Tuesday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market where prices plunged to the lowest level in more than four years after countries which account for more than one of third of global supplies failed to commit to production cuts ahead of an OPEC meet in Vienna this week. Talks between Venezuela, Saudi Arabia, Russia and Mexico didn’t lead to any sort of joint commitment to reduce output even as the countries planned to start quarterly monitoring of oil prices. A rise in US oil stockpiles last week signaled weakening demand for the fuel in the world’s biggest crude consumer. US crude oil stockpiles climbed by 2.8 million barrels last week, the API said. Investors weighed mixed US economic data as an upward revision of Q3 GDP data was offset by a dip in US consumer confidence and slowing home prices gains. The world’s biggest economy grew at an annualized rate of 3.9 per cent in the July-September 2014 quarter, up from an initial estimate of 3.5 per cent. However, consumer confidence slid to a five-month low as the index measuring household sentiment declined to 88.7 in November from 94.1 in the previous month. Home prices in 20 US cities rose at the weakest pace since October 2012, up 4.9 per cent in September 2014, year on year, after an annual 5.6 per cent gain in August 2014. Crude oil futures may continue the downward journey as investors exercise caution ahead of the OPEC meet tomorrow. At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 4,641 per barrel, down by 2.34 per cent, after opening at Rs 4,739, against a previous close of Rs 4,752. It touched an intra-day low of Rs 4,622
26/11/2014 09:24
Crude oil futures tumbled on Tuesday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market where prices plunged to the lowest level in more than four years after countries which account for more than one of third of global supplies failed to commit to production cuts ahead of an OPEC meet in Vienna this week. Talks between Venezuela, Saudi Arabia, Russia and Mexico didn’t lead to any sort of joint commitment to reduce output even as the countries planned to start quarterly monitoring of oil prices. A rise in US oil stockpiles last week signaled weakening demand for the fuel in the world’s biggest crude consumer. US crude oil stockpiles climbed by 2.8 million barrels last week, the API said. Investors weighed mixed US economic data as an upward revision of Q3 GDP data was offset by a dip in US consumer confidence and slowing home prices gains. The world’s biggest economy grew at an annualized rate of 3.9 per cent in the July-September 2014 quarter, up from an initial estimate of 3.5 per cent. However, consumer confidence slid to a five-month low as the index measuring household sentiment declined to 88.7 in November from 94.1 in the previous month. Home prices in 20 US cities rose at the weakest pace since October 2012, up 4.9 per cent in September 2014, year on year, after an annual 5.6 per cent gain in August 2014. Crude oil futures may continue the downward journey as investors exercise caution ahead of the OPEC meet tomorrow. At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 4,641 per barrel, down by 2.34 per cent, after opening at Rs 4,739, against a previous close of Rs 4,752. It touched an intra-day low of Rs 4,622
