Fears of widening supply glut take toll on Oil
19/12/2014 09:19
Crude oil futures tumbled in the domestic market on Thursday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market after Iran pledged to retain market share, joining its OPEC peers who have cut prices to maintain market position amidst surging US output.
Saudi Arabia, OPEC’s biggest crude exporter and producer also said that it will keep its output steady despite the freefall in prices, raising fears over a supply glut.
The OPEC last month left its output target unchanged at 30 million barrels per day while forecasting the weakest demand for its oil in 12 years in 2015.
Investors weighed mixed US economic data which showed a drop in the number of unemployment claims to the lowest level in six weeks, signaling an improving labour market, offset by slower gain in services in December.
Jobless claims fell 6,000 to 289,000 in the week ended December 13. The gauge measuring US services fell to 53.6 in December from 56.2 in the previous month, with a reading above 50 signaling expansion. US leading index rose 0.6 per cent in November 2014 over the previous month, when it climbed at the same pace.
Crude oil futures may rebound today after Saudi Arabia’s Oil Minister said that he is optimistic over global demand in the future.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,531 per barrel, down by 3.8 per cent, after opening at Rs 3,655, against a previous close of Rs 3,672. It touched an intra-day low of Rs 3,483.
19/12/2014 09:19
Crude oil futures tumbled in the domestic market on Thursday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market after Iran pledged to retain market share, joining its OPEC peers who have cut prices to maintain market position amidst surging US output.
Saudi Arabia, OPEC’s biggest crude exporter and producer also said that it will keep its output steady despite the freefall in prices, raising fears over a supply glut.
The OPEC last month left its output target unchanged at 30 million barrels per day while forecasting the weakest demand for its oil in 12 years in 2015.
Investors weighed mixed US economic data which showed a drop in the number of unemployment claims to the lowest level in six weeks, signaling an improving labour market, offset by slower gain in services in December.
Jobless claims fell 6,000 to 289,000 in the week ended December 13. The gauge measuring US services fell to 53.6 in December from 56.2 in the previous month, with a reading above 50 signaling expansion. US leading index rose 0.6 per cent in November 2014 over the previous month, when it climbed at the same pace.
Crude oil futures may rebound today after Saudi Arabia’s Oil Minister said that he is optimistic over global demand in the future.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,531 per barrel, down by 3.8 per cent, after opening at Rs 3,655, against a previous close of Rs 3,672. It touched an intra-day low of Rs 3,483.
