Bargain buying spurs Oil rebound
02/12/2014 09:38
Crude oil futures surged in the domestic market on Monday tracking a positive trend in the overseas market as the sharp slump in prices in recent sessions when the OPEC refrained from a production cut to ease a supply glut, offered good bargain buying opportunity in the fuel at existing levels.
Strong manufacturing gains in the US signaled an upbeat demand outlook for the fuel in the world’s biggest oil consumer. Manufacturing in the US expanded at the second highest level since April 2011 as the ISM manufacturing PMI stood at 58.7 in November, with a reading above 50 signaling expansion.
Top US Federal Reserve officials stressed that plunging oil prices will lift growth in the world’s biggest economy by boosting spending.
Investors cast aside weak Chinese and Euro area manufacturing data which showed that factories had grinded to a halt. China’s manufacturing gauge slumped to the no-change 50 mark last month from 50.4 in October, while that in the Euro area fell to 50.1 from 50.6.
Crude oil futures may fall today as investors continue to weigh a worsening supply glut amid a fading global economic recovery which may curb demand.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 4,271 per barrel, up by 1.45 per cent, after opening at Rs 4,185 against a previous close of Rs 4,210. It touched an intra-day high of Rs 4,287.
02/12/2014 09:38
Crude oil futures surged in the domestic market on Monday tracking a positive trend in the overseas market as the sharp slump in prices in recent sessions when the OPEC refrained from a production cut to ease a supply glut, offered good bargain buying opportunity in the fuel at existing levels.
Strong manufacturing gains in the US signaled an upbeat demand outlook for the fuel in the world’s biggest oil consumer. Manufacturing in the US expanded at the second highest level since April 2011 as the ISM manufacturing PMI stood at 58.7 in November, with a reading above 50 signaling expansion.
Top US Federal Reserve officials stressed that plunging oil prices will lift growth in the world’s biggest economy by boosting spending.
Investors cast aside weak Chinese and Euro area manufacturing data which showed that factories had grinded to a halt. China’s manufacturing gauge slumped to the no-change 50 mark last month from 50.4 in October, while that in the Euro area fell to 50.1 from 50.6.
Crude oil futures may fall today as investors continue to weigh a worsening supply glut amid a fading global economic recovery which may curb demand.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 4,271 per barrel, up by 1.45 per cent, after opening at Rs 4,185 against a previous close of Rs 4,210. It touched an intra-day high of Rs 4,287.
