Supply glut deepens oil sell-off
26/11/2014 11:39
Crude oil futures plunged deeper into bear terrain on Wednesday as investors and speculators bet that the OPEC may not reduce oil output at a meeting tomorrow as pre-OPEC talks failed to result into a joint commitment to slash production. Russia, Saudi Arabia, Mexico and Venezuela failed to reach an agreement to slash output in a bid to ease a supply glut and support oil prices which have slumped to the lowest level in more than four years. An uptick in US oil supplies amid production at the highest level in three decades also weighed on sentiment as the API said that US crude stockpiles rose by 2.8 million barrels last week. At the MCX, Crude Oil futures, for the December 2014 contract, is trading at Rs 4,606 per barrel, down by 0.75 per cent, after opening at Rs 4,625, against a previous close of Rs 4,641. It touched an intra-day low of Rs 4,601. (At 11:22 AM).
26/11/2014 11:39
Crude oil futures plunged deeper into bear terrain on Wednesday as investors and speculators bet that the OPEC may not reduce oil output at a meeting tomorrow as pre-OPEC talks failed to result into a joint commitment to slash production. Russia, Saudi Arabia, Mexico and Venezuela failed to reach an agreement to slash output in a bid to ease a supply glut and support oil prices which have slumped to the lowest level in more than four years. An uptick in US oil supplies amid production at the highest level in three decades also weighed on sentiment as the API said that US crude stockpiles rose by 2.8 million barrels last week. At the MCX, Crude Oil futures, for the December 2014 contract, is trading at Rs 4,606 per barrel, down by 0.75 per cent, after opening at Rs 4,625, against a previous close of Rs 4,641. It touched an intra-day low of Rs 4,601. (At 11:22 AM).
