Oil slides deeper into bear market
19/11/2014 09:29
Crude oil futures tumbled in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market amid rising bets that the Organisation for Petroleum Exporting Countries (OPEC), which accounts for about 40 per cent of global supplies may resist cutting output at its upcoming November 27 Vienna meet to stem a slide in prices. Big members such as Saudi Arabia and Kuwait have dashed hopes of an output reduction as they try to maintain market share amid a US shale gas boom. Saudi Arabia, the biggest OPEC oil exporter maybe willing to accept lower prices, making a production cut highly unlikely. US crude stockpiles rose last week, signaling weaker demand for the fuel in the world’s biggest oil consumer. US oil inventories climbed 3.7 million barrels in the week ended November 14, the API said. Investors cast aside robust US housing data which showed a rebound in US homebuilder sentiment this month, signaling a pickup in the housing market in the world’s biggest economy, supporting the demand outlook for the fuel. The gauge measuring US homebuilder sentiment rose to 58 in November from 54 in October, NAHB said. Crude oil may continue the downward journey today amid caution ahead of the weekly EIA supplies data. At the MCX, Crude Oil futures, for the November 2014 contract, closed at Rs 4,607 per barrel, down by 1.05 per cent, after opening at Rs 4,666, against a previous close of Rs 4,656. It touched an intra-day low of Rs 4,587.
19/11/2014 09:29
Crude oil futures tumbled in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market amid rising bets that the Organisation for Petroleum Exporting Countries (OPEC), which accounts for about 40 per cent of global supplies may resist cutting output at its upcoming November 27 Vienna meet to stem a slide in prices. Big members such as Saudi Arabia and Kuwait have dashed hopes of an output reduction as they try to maintain market share amid a US shale gas boom. Saudi Arabia, the biggest OPEC oil exporter maybe willing to accept lower prices, making a production cut highly unlikely. US crude stockpiles rose last week, signaling weaker demand for the fuel in the world’s biggest oil consumer. US oil inventories climbed 3.7 million barrels in the week ended November 14, the API said. Investors cast aside robust US housing data which showed a rebound in US homebuilder sentiment this month, signaling a pickup in the housing market in the world’s biggest economy, supporting the demand outlook for the fuel. The gauge measuring US homebuilder sentiment rose to 58 in November from 54 in October, NAHB said. Crude oil may continue the downward journey today amid caution ahead of the weekly EIA supplies data. At the MCX, Crude Oil futures, for the November 2014 contract, closed at Rs 4,607 per barrel, down by 1.05 per cent, after opening at Rs 4,666, against a previous close of Rs 4,656. It touched an intra-day low of Rs 4,587.
