Weaker dollar sparks mild rebound in Oil
10/12/2014 09:33
Crude oil futures closed higher in the domestic market on Tuesday as the sharp losses in the energy commodity in the previous sessions offered good bargain buying opportunity in the fuel at existing levels. Further, a weaker dollar boosted the appeal of the fuel as an alternative investment. Weaker greenback makes the fuel cheaper for those holding other currencies, thus bolstering demand. However, a reduction in EIA crude price forecasts and a rise in US oil supplies last week signaled weaker demand for the fuel in the world’s biggest crude oil consumer, trimming gains in the fuel. US oil stockpiles rose 4.4 million barrels last week, the API said. The EIA cut its average price forecast for WTI crude to USD 62.75 per barrel in 2015 from USD 77.75 per barrel predicted earlier. US job openings rose by 149,000 to 4.83 million in October, the second highest level since January 2001, signaling an improvement in US labour market, supporting the demand outlook for the fuel. US small business optimism rose to the highest level in nearly 8 years as the NFIB’s small business sentiment gauge surged by 2 points to 98.1 in November 2014, the highest reading since February 2007, supporting the demand outlook for oil. Crude oil futures may fall today as Iran predicted a further slump in prices amid a price war by OPEC. At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,943 per barrel, up by 0.25 per cent, after opening at Rs 3,920, against a previous close of Rs 3,933. It touched an intra-day high of Rs 3,987.
10/12/2014 09:33
Crude oil futures closed higher in the domestic market on Tuesday as the sharp losses in the energy commodity in the previous sessions offered good bargain buying opportunity in the fuel at existing levels. Further, a weaker dollar boosted the appeal of the fuel as an alternative investment. Weaker greenback makes the fuel cheaper for those holding other currencies, thus bolstering demand. However, a reduction in EIA crude price forecasts and a rise in US oil supplies last week signaled weaker demand for the fuel in the world’s biggest crude oil consumer, trimming gains in the fuel. US oil stockpiles rose 4.4 million barrels last week, the API said. The EIA cut its average price forecast for WTI crude to USD 62.75 per barrel in 2015 from USD 77.75 per barrel predicted earlier. US job openings rose by 149,000 to 4.83 million in October, the second highest level since January 2001, signaling an improvement in US labour market, supporting the demand outlook for the fuel. US small business optimism rose to the highest level in nearly 8 years as the NFIB’s small business sentiment gauge surged by 2 points to 98.1 in November 2014, the highest reading since February 2007, supporting the demand outlook for oil. Crude oil futures may fall today as Iran predicted a further slump in prices amid a price war by OPEC. At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,943 per barrel, up by 0.25 per cent, after opening at Rs 3,920, against a previous close of Rs 3,933. It touched an intra-day high of Rs 3,987.
