Bear rules oil market on oversupply risks
17/12/2014 09:26
Crude oil futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity as OPEC signaled its reluctance to cut output as it fights for market share amid surging US oil production, raising risks of a deepening supply glut in the oil market, pushing global oil prices below the USD 60 per barrel mark.
US crude oil stockpiles rose last week, signaling weak demand for the fuel in the world’s biggest fuel consumer.
US crude supplies climbed by 1.9 million barrels last week, the API said. US housing starts fell last month while manufacturing growth slowed in December, signaling a cooling recovery in the world’s biggest economy, dimming the demand outlook for the fuel. Housing starts fell 1.6 per cent to a 1.03 million annualized rate in November 2014.
The gauge measuring US manufacturing fell to 53.7 this month from 54.8 in November, with a reading above 50 signaling expansion.
Further, the first contraction in Chinese manufacturing in seven months signaled bearish demand prospects from the world’s second biggest oil user. HSBC said that its China manufacturing gauge fell to 49.5 in December from a no-change mark of 50 in the previous month, signaling contraction in manufacturing over the previous month.
Crude oil futures may fall today as Russia said that it may keep output steady next year, refraining from a production cut.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,573 per barrel, down by 0.69 per cent, after opening at Rs 3,571, against a previous close of Rs 3,598. It touched an intra-day low of Rs 3,436.
17/12/2014 09:26
Crude oil futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity as OPEC signaled its reluctance to cut output as it fights for market share amid surging US oil production, raising risks of a deepening supply glut in the oil market, pushing global oil prices below the USD 60 per barrel mark.
US crude oil stockpiles rose last week, signaling weak demand for the fuel in the world’s biggest fuel consumer.
US crude supplies climbed by 1.9 million barrels last week, the API said. US housing starts fell last month while manufacturing growth slowed in December, signaling a cooling recovery in the world’s biggest economy, dimming the demand outlook for the fuel. Housing starts fell 1.6 per cent to a 1.03 million annualized rate in November 2014.
The gauge measuring US manufacturing fell to 53.7 this month from 54.8 in November, with a reading above 50 signaling expansion.
Further, the first contraction in Chinese manufacturing in seven months signaled bearish demand prospects from the world’s second biggest oil user. HSBC said that its China manufacturing gauge fell to 49.5 in December from a no-change mark of 50 in the previous month, signaling contraction in manufacturing over the previous month.
Crude oil futures may fall today as Russia said that it may keep output steady next year, refraining from a production cut.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,573 per barrel, down by 0.69 per cent, after opening at Rs 3,571, against a previous close of Rs 3,598. It touched an intra-day low of Rs 3,436.
