Bears deepen for Oil
01/12/2014 09:25
Crude oil futures tumbled in the domestic market on Friday as investors and speculators exited positions in the energy commodity as they continued to react to the decision of the OPEC to refrain from reducing production despite a worsening supply glut. The Organisation of the Petroleum Exporting Countries (OPEC), which accounts for about 40 per cent of global oil supplies stuck to its collective production target of 30 million barrels per day on Thursday despite calls from some members such as Venezuela to cut production in a bid to ease a supply glut and support plunging prices. Analysts see a further decline in oil prices, going forward as investors weigh the fastest pace of US oil production in three decades and adequate OPEC supplies against weakening global demand. Weak data from the Euro area signaled a gloomy outlook for oil in the 18-member economy. The region’s jobless rate remained at an elevated 11.5 per cent in October 2014 while inflation tumbled to a five-year low of 0.3 per cent in November 2014. Crude oil futures may continue the downward journey today as the global crude oil market remains awash in crude while a factory slowdown in China dampens demand outlook. At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 4,210 per barrel, down by 1.89 per cent, after opening at Rs 4,250 against a previous close of Rs 4,291. It touched an intra-day low of Rs 4,192.
01/12/2014 09:25
Crude oil futures tumbled in the domestic market on Friday as investors and speculators exited positions in the energy commodity as they continued to react to the decision of the OPEC to refrain from reducing production despite a worsening supply glut. The Organisation of the Petroleum Exporting Countries (OPEC), which accounts for about 40 per cent of global oil supplies stuck to its collective production target of 30 million barrels per day on Thursday despite calls from some members such as Venezuela to cut production in a bid to ease a supply glut and support plunging prices. Analysts see a further decline in oil prices, going forward as investors weigh the fastest pace of US oil production in three decades and adequate OPEC supplies against weakening global demand. Weak data from the Euro area signaled a gloomy outlook for oil in the 18-member economy. The region’s jobless rate remained at an elevated 11.5 per cent in October 2014 while inflation tumbled to a five-year low of 0.3 per cent in November 2014. Crude oil futures may continue the downward journey today as the global crude oil market remains awash in crude while a factory slowdown in China dampens demand outlook. At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 4,210 per barrel, down by 1.89 per cent, after opening at Rs 4,250 against a previous close of Rs 4,291. It touched an intra-day low of Rs 4,192.
