OPEC skepticism takes toll on Crude
27/11/2014 09:33
Crude oil futures plunged in the domestic market on Wednesday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market amid doubts that the OPEC which accounts for about 40 per cent of global supplies may cut output at its Vienna meet on Thursday to trim a supply glut and stem a sharp dip in prices.
Saudi Arabia’s oil minister Ali-Al-Naimi said that tumbling oil prices may stabilize on their own, giving way to speculation that the cartel may stick to its production target of 30 million barrels per day. US oil stockpiles surged last week, signaling weakening demand for the fuel in the world’s biggest oil consumer.
US crude stockpiles climbed 1.95 million barrels to 383 million barrels last week as supplies at Cushing, the biggest US oil storage hub surged to the highest level since April, up 1.33 million barrels to 24.6 million barrels, the EIA said.
The number of Americans who filed for unemployment claims ticked higher last week; up 21,000 to 313,000 the highest level since early September, signaling a cooling labour market in the world’s biggest economy, dimming the demand outlook for the fuel.
Meanwhile, US non-defence capital goods orders excluding aircraft, a proxy for capital spending fell 1.3 per cent in October.
However, US new home sales rose 0.7 per cent to a 458,000 annualized rate in October 2014, signaling a sustained housing recovery, supporting the demand outlook for crude. US consumer spending rose 0.2 per cent in October from September, when it stood little changed.
Oil futures may fall today amid bets that the OPEC may refrain from cutting production.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 4,579 per barrel, down by 1.34 per cent, after opening at Rs 4,625, against a previous close of Rs 4,641. It touched an intra-day low of Rs 4,544.
27/11/2014 09:33
Crude oil futures plunged in the domestic market on Wednesday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market amid doubts that the OPEC which accounts for about 40 per cent of global supplies may cut output at its Vienna meet on Thursday to trim a supply glut and stem a sharp dip in prices.
Saudi Arabia’s oil minister Ali-Al-Naimi said that tumbling oil prices may stabilize on their own, giving way to speculation that the cartel may stick to its production target of 30 million barrels per day. US oil stockpiles surged last week, signaling weakening demand for the fuel in the world’s biggest oil consumer.
US crude stockpiles climbed 1.95 million barrels to 383 million barrels last week as supplies at Cushing, the biggest US oil storage hub surged to the highest level since April, up 1.33 million barrels to 24.6 million barrels, the EIA said.
The number of Americans who filed for unemployment claims ticked higher last week; up 21,000 to 313,000 the highest level since early September, signaling a cooling labour market in the world’s biggest economy, dimming the demand outlook for the fuel.
Meanwhile, US non-defence capital goods orders excluding aircraft, a proxy for capital spending fell 1.3 per cent in October.
However, US new home sales rose 0.7 per cent to a 458,000 annualized rate in October 2014, signaling a sustained housing recovery, supporting the demand outlook for crude. US consumer spending rose 0.2 per cent in October from September, when it stood little changed.
Oil futures may fall today amid bets that the OPEC may refrain from cutting production.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 4,579 per barrel, down by 1.34 per cent, after opening at Rs 4,625, against a previous close of Rs 4,641. It touched an intra-day low of Rs 4,544.
