Oil posts slim losses on supply glut fears
29/12/2014 09:45
Crude oil futures succumbed to a mild sell-off on Friday on fears over a widening supply glut in the US, the world’s biggest crude oil consumer, where output is at the highest level in nearly three decades.
A stronger dollar also curbed demand for the energy commodity as an alternative asset. Stronger greenback makes crude more expensive for those holding other currencies, thus dimming demand.
However, the losses in the fuel were capped by falling output from Libya; the largest holder of oil reserves in Africa, amid infighting after several tanks caught fire at the country’s largest petroleum port amid an attack by Islamist militants.
Further, speculation that Saudi Arabia, OPEC’s largest crude exporter is seen as signaling confidence in the oil market also supported oil. Saudi Arabia sees crude rebounding to USD 80 per barrel next year as demand rises amid a gradual recovery in the world economy.
Meanwhile, Iraq’s Oil Minister Adel Abdul Mahdi said that crude prices are “fair” at about USD 70 -80 a barrel.
Oil may rebound today as the Libyan conflict raises supply fears.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,547 per barrel, down by 0.08 per cent, after opening at Rs 3,590, against the previous close price of Rs 3,550. It touched an intraday low of Rs 3,537 till the closing.
29/12/2014 09:45
Crude oil futures succumbed to a mild sell-off on Friday on fears over a widening supply glut in the US, the world’s biggest crude oil consumer, where output is at the highest level in nearly three decades.
A stronger dollar also curbed demand for the energy commodity as an alternative asset. Stronger greenback makes crude more expensive for those holding other currencies, thus dimming demand.
However, the losses in the fuel were capped by falling output from Libya; the largest holder of oil reserves in Africa, amid infighting after several tanks caught fire at the country’s largest petroleum port amid an attack by Islamist militants.
Further, speculation that Saudi Arabia, OPEC’s largest crude exporter is seen as signaling confidence in the oil market also supported oil. Saudi Arabia sees crude rebounding to USD 80 per barrel next year as demand rises amid a gradual recovery in the world economy.
Meanwhile, Iraq’s Oil Minister Adel Abdul Mahdi said that crude prices are “fair” at about USD 70 -80 a barrel.
Oil may rebound today as the Libyan conflict raises supply fears.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,547 per barrel, down by 0.08 per cent, after opening at Rs 3,590, against the previous close price of Rs 3,550. It touched an intraday low of Rs 3,537 till the closing.
