Oil bears deepen on US supplies data
07/01/2015 09:33
Crude oil futures plunged deeper into the bear terrain in the domestic and overseas market on Tuesday as investors and speculators exited the energy commodity as a rise in US crude oil stockpiles last week signaled weakening demand for the fuel in the world’s biggest oil consumer.
Oil supplies at Cushing, the biggest US oil storage hub rose by 482,000 barrels last week, the API said. However, overall US stockpiles fell 4 million barrels last week.
Morgan Stanley saw higher production from fields in West Africa, Latin America, the US and Canada in addition to higher supplies from Russia and Iraq while Iran was set to boost exports to about 500,000 barrels per day if international sanctions are lifted, threatening to aggravate a global supply glut.
Services activity in the US cooled in December while factory orders declined in November, signaling a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. The ISM’s services gauge fell to a six-month low of 56.2 last month from 59.3 in November, with a reading above 50 signaling expansion.
US factory orders fell for a fourth straight month, down 0.7 per cent in November, indicating a manufacturing slowdown.
Oil may continue the downward slide today ahead of data which may show a rise in US crude stockpiles last week.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,069 per barrel, down by 4.54 per cent, after opening at Rs 3,197, against the previous close price of Rs 3,215. It touched an intraday low of Rs 3,047 till the closing.
07/01/2015 09:33
Crude oil futures plunged deeper into the bear terrain in the domestic and overseas market on Tuesday as investors and speculators exited the energy commodity as a rise in US crude oil stockpiles last week signaled weakening demand for the fuel in the world’s biggest oil consumer.
Oil supplies at Cushing, the biggest US oil storage hub rose by 482,000 barrels last week, the API said. However, overall US stockpiles fell 4 million barrels last week.
Morgan Stanley saw higher production from fields in West Africa, Latin America, the US and Canada in addition to higher supplies from Russia and Iraq while Iran was set to boost exports to about 500,000 barrels per day if international sanctions are lifted, threatening to aggravate a global supply glut.
Services activity in the US cooled in December while factory orders declined in November, signaling a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. The ISM’s services gauge fell to a six-month low of 56.2 last month from 59.3 in November, with a reading above 50 signaling expansion.
US factory orders fell for a fourth straight month, down 0.7 per cent in November, indicating a manufacturing slowdown.
Oil may continue the downward slide today ahead of data which may show a rise in US crude stockpiles last week.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,069 per barrel, down by 4.54 per cent, after opening at Rs 3,197, against the previous close price of Rs 3,215. It touched an intraday low of Rs 3,047 till the closing.
