Bears deepen for Oil
09/12/2014 09:33
Crude oil futures slumped in the domestic market on Monday as investors and speculators exited positions in the energy commodity as prices plunged to the lowest level since July 2009 in the overseas market after Iraq joined Saudi Arabia to cut prices for its crude to Asian customers, a sign that the OPEC is aiming to preserve market share amidst surging US production. Iraq, the second biggest oil producer in the OPEC cut the price of its Basrah Light crude to the lowest level in at least 11 years. The Kuwait Petroleum Corp. sees oil remaining at about USD 65 per barrel for six months until OPEC’s output changes or a demand expansion. A recession in Japan and falling China imports also weighed on the demand outlook for the fuel. Japan’s economy shrank an annualized 1.9 per cent in Q3 2014 from the previous quarter, more than an initially reported 1.6 per cent contraction amid a surprise dip in corporate investments, pushing the world’s third biggest economy into its fourth recession in six years. China’s imports fell 6.7 per cent, year on year in November 2014, compared to an estimated 3.8 per cent rise by analysts, signaling weaker domestic demand. Crude oil futures may continue the downward journey today amid a bearish trend in overseas market. At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,933 per barrel, down by 4.53 per cent, after opening at Rs 4,115, against a previous close of Rs 4,120. It touched an intra-day low of Rs 3,913.
09/12/2014 09:33
Crude oil futures slumped in the domestic market on Monday as investors and speculators exited positions in the energy commodity as prices plunged to the lowest level since July 2009 in the overseas market after Iraq joined Saudi Arabia to cut prices for its crude to Asian customers, a sign that the OPEC is aiming to preserve market share amidst surging US production. Iraq, the second biggest oil producer in the OPEC cut the price of its Basrah Light crude to the lowest level in at least 11 years. The Kuwait Petroleum Corp. sees oil remaining at about USD 65 per barrel for six months until OPEC’s output changes or a demand expansion. A recession in Japan and falling China imports also weighed on the demand outlook for the fuel. Japan’s economy shrank an annualized 1.9 per cent in Q3 2014 from the previous quarter, more than an initially reported 1.6 per cent contraction amid a surprise dip in corporate investments, pushing the world’s third biggest economy into its fourth recession in six years. China’s imports fell 6.7 per cent, year on year in November 2014, compared to an estimated 3.8 per cent rise by analysts, signaling weaker domestic demand. Crude oil futures may continue the downward journey today amid a bearish trend in overseas market. At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,933 per barrel, down by 4.53 per cent, after opening at Rs 4,115, against a previous close of Rs 4,120. It touched an intra-day low of Rs 3,913.
