Oil slips on supply glut, US housing data
23/12/2014 09:31
Crude oil futures tumbled in the domestic market on Monday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market as Saudi Arabia, the largest crude exporter and producer in the OPEC signaled that the OPEC wasn’t willing to give up market share amid surging US output, raising fears of a supply glut in the global oil market.
Saudi Arabian Energy Minister said that it would be “difficult, if not impossible” for OPEC to curb its oil production amid a supply glut.
Sales of previously owned homes in the US fell in November, signaling a slowing housing recovery in the world’s biggest economy, dampening the demand prospects for crude. US existing home sales fell 6.1 per cent to a 4.93 million annual rate in November over the previous month.
Oil futures may rebound today ahead of data which may show that US crude supplies rose last week.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,534 per barrel, down by 2.27 per cent, after opening at Rs 3,650, against the previous close price of Rs 3,616. It touched an intraday low of Rs 3,526 till the closing.
23/12/2014 09:31
Crude oil futures tumbled in the domestic market on Monday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market as Saudi Arabia, the largest crude exporter and producer in the OPEC signaled that the OPEC wasn’t willing to give up market share amid surging US output, raising fears of a supply glut in the global oil market.
Saudi Arabian Energy Minister said that it would be “difficult, if not impossible” for OPEC to curb its oil production amid a supply glut.
Sales of previously owned homes in the US fell in November, signaling a slowing housing recovery in the world’s biggest economy, dampening the demand prospects for crude. US existing home sales fell 6.1 per cent to a 4.93 million annual rate in November over the previous month.
Oil futures may rebound today ahead of data which may show that US crude supplies rose last week.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,534 per barrel, down by 2.27 per cent, after opening at Rs 3,650, against the previous close price of Rs 3,616. It touched an intraday low of Rs 3,526 till the closing.
