Bargain buying lifts Oil
15/01/2015 09:24
Crude oil futures closed higher in the domestic market on Wednesday tracking a sharp rebound in the energy commodity in the overseas market as the recent slump offered investors and speculators a good bargain buying opportunity in the fuel, at existing levels.
However, the outlook for the fuel remained weak with Kuwait predicting that the global supply glut will persist at least until the second half of this year.
US crude oil stockpiles rose last week, signaling weak demand for the fuel in the world’s biggest crude consumer. US crude oil inventories spiked 5.4 million barrels to 387.8 million barrels last week, the EIA said.
US oil output surged by 60,000 barrels per day to 9.19 million barrels per day last week, the most since EIA records going back to 1983. Record production is boosting US stockpiles, threatening to deepen a supply glut.
US retail sales fell the most in nearly a year last month, raising concerns over a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. Retail sales in the US declined by 0.9 per cent in December from the previous month, when they climbed 0.4 per cent.
Oil may fall today as cooling US economic recovery threatens to curb demand for the fuel.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 2,863 per barrel, up by 1.3 per cent, after opening at Rs 2,811, against the previous close price of Rs 2,826. It touched an intraday high of Rs 2907 till the closing.
15/01/2015 09:24
Crude oil futures closed higher in the domestic market on Wednesday tracking a sharp rebound in the energy commodity in the overseas market as the recent slump offered investors and speculators a good bargain buying opportunity in the fuel, at existing levels.
However, the outlook for the fuel remained weak with Kuwait predicting that the global supply glut will persist at least until the second half of this year.
US crude oil stockpiles rose last week, signaling weak demand for the fuel in the world’s biggest crude consumer. US crude oil inventories spiked 5.4 million barrels to 387.8 million barrels last week, the EIA said.
US oil output surged by 60,000 barrels per day to 9.19 million barrels per day last week, the most since EIA records going back to 1983. Record production is boosting US stockpiles, threatening to deepen a supply glut.
US retail sales fell the most in nearly a year last month, raising concerns over a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. Retail sales in the US declined by 0.9 per cent in December from the previous month, when they climbed 0.4 per cent.
Oil may fall today as cooling US economic recovery threatens to curb demand for the fuel.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 2,863 per barrel, up by 1.3 per cent, after opening at Rs 2,811, against the previous close price of Rs 2,826. It touched an intraday high of Rs 2907 till the closing.
