Oil recovers more ground despite OPEC forecast
16/01/2015 09:37
Crude oil futures closed on a bullish note in the domestic market on Thursday as the sharp slump in prices in recent sessions amid fears of a widening supply glut which pushed prices to the lowest level in more than five and a half years paved the way for good bargain buying opportunity in the energy commodity, at existing levels. Manufacturing activity in the New York region expanded at a brisk pace in January, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel. The gauge measuring New York region’s manufacturing activity rose to 9.95 this month from a revised -1.23 in December, with a reading above 0 signaling expansion. Investors cast aside an uptick in the number of applications filed by Americans to seek jobless benefits last week to a four-month high, which signaled a cooling labour market recovery in the US. Jobless claims rose by 19,000 to 316,000 last week. The OPEC forecast the weakest demand for its crude in 12 years in 2015 while US oil production surged to the highest level since records dating back to 1983 at 9.19 million barrels per day last week. Demand for OPEC’s crude this year may average 28.8 million barrels per day, down 100,000 barrels per day from a previous forecast. Oil may fall today as OPEC cut the demand forecast for its oil this year. At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 2,939 per barrel, up by 2.65 per cent, after opening at Rs 2,892, against the previous close price of Rs 2,863. It touched an intraday high of Rs 3,120 till the closing
16/01/2015 09:37
Crude oil futures closed on a bullish note in the domestic market on Thursday as the sharp slump in prices in recent sessions amid fears of a widening supply glut which pushed prices to the lowest level in more than five and a half years paved the way for good bargain buying opportunity in the energy commodity, at existing levels. Manufacturing activity in the New York region expanded at a brisk pace in January, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel. The gauge measuring New York region’s manufacturing activity rose to 9.95 this month from a revised -1.23 in December, with a reading above 0 signaling expansion. Investors cast aside an uptick in the number of applications filed by Americans to seek jobless benefits last week to a four-month high, which signaled a cooling labour market recovery in the US. Jobless claims rose by 19,000 to 316,000 last week. The OPEC forecast the weakest demand for its crude in 12 years in 2015 while US oil production surged to the highest level since records dating back to 1983 at 9.19 million barrels per day last week. Demand for OPEC’s crude this year may average 28.8 million barrels per day, down 100,000 barrels per day from a previous forecast. Oil may fall today as OPEC cut the demand forecast for its oil this year. At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 2,939 per barrel, up by 2.65 per cent, after opening at Rs 2,892, against the previous close price of Rs 2,863. It touched an intraday high of Rs 3,120 till the closing
