Oil-sell off continues on OPEC bets
16/12/2014 09:04
Crude oil futures slumped in the domestic market on Monday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market on speculation that the OPEC may not cut output even if prices tumbled to USD 40 per barrel.
OPEC will stick to its decision of not to cut output, the U.A.E.’s Energy Minister Al-Mazrouei said, adding that the cartel will wait for a minimum three months before calling an emergency meeting to discuss output again.
Investors weighed mixed US data which showed that industrial output in the US rose in November while homebuilder sentiment edged lower this month. US industrial output climbed 1.3 per cent in November from the previous month, when it climbed 0.1 per cent.
A gauge measuring US homebuilder sentiment fell to 57 in December from 58 in November, signaling a slight slowdown in US housing recovery, weighing on sentiment.
Crude oil futures may continue the downward ride today as OPEC fails to act amid US production at three decade highs.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,598 per barrel, down by 1.10 per cent, after opening at Rs 3,634, against a previous close of Rs 3,638. It touched an intra-day low of Rs 3,562.
16/12/2014 09:04
Crude oil futures slumped in the domestic market on Monday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market on speculation that the OPEC may not cut output even if prices tumbled to USD 40 per barrel.
OPEC will stick to its decision of not to cut output, the U.A.E.’s Energy Minister Al-Mazrouei said, adding that the cartel will wait for a minimum three months before calling an emergency meeting to discuss output again.
Investors weighed mixed US data which showed that industrial output in the US rose in November while homebuilder sentiment edged lower this month. US industrial output climbed 1.3 per cent in November from the previous month, when it climbed 0.1 per cent.
A gauge measuring US homebuilder sentiment fell to 57 in December from 58 in November, signaling a slight slowdown in US housing recovery, weighing on sentiment.
Crude oil futures may continue the downward ride today as OPEC fails to act amid US production at three decade highs.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,598 per barrel, down by 1.10 per cent, after opening at Rs 3,634, against a previous close of Rs 3,638. It touched an intra-day low of Rs 3,562.
