OPEC verdict hits oil
28/11/2014 09:11
Crude oil futures plunged in the domestic and overseas markets on Thursday after the Organisation of the Petroleum Exporting Countries (OPEC), which accounts for about 40 per cent of global oil supplies, refrained from reducing production to stem a supply glut. The cartel stuck to its collective target of pumping in 30 million barrels per day of oil, resisting calls from Venezuela that a production cut was needed to stem a rout in oil prices. Large OPEC producers such as Saudi Arabia weren’t in favour of a production cut as they endeavor to maintain market share amid a surge in US oil production to 30-year highs due to a shale gas boom. Goldman Sachs said that the OPEC’s decision to refrain from production cuts may cause crude to slide deeper into bear market. Meanwhile, US oil production surged to the highest level in more than three decades, up 73,000 barrels to 9.08 million barrels per day in the week ended November 21, 2014. China’s industrial profits fell at the sharpest pace in two years, signaling a worsening slowdown in the world’s second biggest oil consumer, darkening the demand outlook for the fuel. Industrial profits fell 2.1 per cent in October 2014 from the same month a year ago, the biggest decrease since August 2012, compared to a 0.4 per cent annual rise in September 2014. Crude oil futures may continue to slide today on bearish OPEC verdict. At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 4,291 per barrel, down by 6.3 per cent, after opening at Rs 4,566 against a previous close of Rs 4,579. It touched an intra-day low of Rs 4,262.
28/11/2014 09:11
Crude oil futures plunged in the domestic and overseas markets on Thursday after the Organisation of the Petroleum Exporting Countries (OPEC), which accounts for about 40 per cent of global oil supplies, refrained from reducing production to stem a supply glut. The cartel stuck to its collective target of pumping in 30 million barrels per day of oil, resisting calls from Venezuela that a production cut was needed to stem a rout in oil prices. Large OPEC producers such as Saudi Arabia weren’t in favour of a production cut as they endeavor to maintain market share amid a surge in US oil production to 30-year highs due to a shale gas boom. Goldman Sachs said that the OPEC’s decision to refrain from production cuts may cause crude to slide deeper into bear market. Meanwhile, US oil production surged to the highest level in more than three decades, up 73,000 barrels to 9.08 million barrels per day in the week ended November 21, 2014. China’s industrial profits fell at the sharpest pace in two years, signaling a worsening slowdown in the world’s second biggest oil consumer, darkening the demand outlook for the fuel. Industrial profits fell 2.1 per cent in October 2014 from the same month a year ago, the biggest decrease since August 2012, compared to a 0.4 per cent annual rise in September 2014. Crude oil futures may continue to slide today on bearish OPEC verdict. At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 4,291 per barrel, down by 6.3 per cent, after opening at Rs 4,566 against a previous close of Rs 4,579. It touched an intra-day low of Rs 4,262.
