IEA outlook, US data spurs crude rally
19/01/2015 09:27
Crude oil futures surged in the domestic market on Friday as investors and speculators booked fresh positions in the energy commodity after the International Energy Agency (IEA) predicted a recovery in the global oil market in the second half of the year.
“A price recovery - barring any major disruption - may not be imminent, but signs are mounting that the tide will turn. A rebalancing may begin to occur in the second half of the year,” the agency added.
The IEA cut its non-OPEC supply growth forecast by 350,000 barrels per day, the first reduction since the 2015 forecast was introduced in July. The IEA predicted a rise in Non-OPEC supply by 950,000 barrels per day to 57.5 million barrels per day this year.
US factory output continued to rise in December while consumer sentiment hit the highest level in 11 years this month, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel.
The gauge measuring US consumer sentiment rose to 98.2 in January from 93.6 in December. US factory output climbed by 0.3 per cent in December 2014 from the previous month, when it surged by 1.3 per cent.
Crude oil prices may fall today after Iraq’s production rose to record highs, threatening to boost a supply glut.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 2,971 per barrel, up by 1.09 per cent, after opening at Rs 2,912, against the previous close price of Rs 2,939. It touched an intraday high of Rs 2,995 till the closing.
19/01/2015 09:27
Crude oil futures surged in the domestic market on Friday as investors and speculators booked fresh positions in the energy commodity after the International Energy Agency (IEA) predicted a recovery in the global oil market in the second half of the year.
“A price recovery - barring any major disruption - may not be imminent, but signs are mounting that the tide will turn. A rebalancing may begin to occur in the second half of the year,” the agency added.
The IEA cut its non-OPEC supply growth forecast by 350,000 barrels per day, the first reduction since the 2015 forecast was introduced in July. The IEA predicted a rise in Non-OPEC supply by 950,000 barrels per day to 57.5 million barrels per day this year.
US factory output continued to rise in December while consumer sentiment hit the highest level in 11 years this month, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel.
The gauge measuring US consumer sentiment rose to 98.2 in January from 93.6 in December. US factory output climbed by 0.3 per cent in December 2014 from the previous month, when it surged by 1.3 per cent.
Crude oil prices may fall today after Iraq’s production rose to record highs, threatening to boost a supply glut.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 2,971 per barrel, up by 1.09 per cent, after opening at Rs 2,912, against the previous close price of Rs 2,939. It touched an intraday high of Rs 2,995 till the closing.
