Oil rout deepens on Goldman forecasts
13/01/2015 09:48
Oil tumbled to the lowest level in more than five and a half years on Monday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas markets after Goldman Sachs cut its price forecasts. Crude has to “stay lower for longer” if shale investments are to be reduced to re-balance the global oil market, Goldman Sachs said.
Goldman sees WTI and Brent trading at USD 41 a barrel and USD 42 per barrel in three months amid excess US storage capacity.
The UAE said that it will continue with its plans to boost production capacity to 3.5 million barrels per day in 2017 from the current 3 million barrels per day, widening a supply glut.
A surprise drop in US wages for the first time in at least 8 years last month dimmed US labour market optimism, dampening the demand outlook for the fuel in the world’s biggest economy. Average hourly earnings in the US fell 0.2 per cent in December.
Oil may fall today amid speculation that a probable rise in US crude stockpiles last week may aggravate a supply glut.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,037 per barrel, down by 2.72 per cent, after opening at Rs 3,108, against the previous close price of Rs 3,122. It touched an intraday low of Rs 3,011 till the closing.
13/01/2015 09:48
Oil tumbled to the lowest level in more than five and a half years on Monday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas markets after Goldman Sachs cut its price forecasts. Crude has to “stay lower for longer” if shale investments are to be reduced to re-balance the global oil market, Goldman Sachs said.
Goldman sees WTI and Brent trading at USD 41 a barrel and USD 42 per barrel in three months amid excess US storage capacity.
The UAE said that it will continue with its plans to boost production capacity to 3.5 million barrels per day in 2017 from the current 3 million barrels per day, widening a supply glut.
A surprise drop in US wages for the first time in at least 8 years last month dimmed US labour market optimism, dampening the demand outlook for the fuel in the world’s biggest economy. Average hourly earnings in the US fell 0.2 per cent in December.
Oil may fall today amid speculation that a probable rise in US crude stockpiles last week may aggravate a supply glut.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,037 per barrel, down by 2.72 per cent, after opening at Rs 3,108, against the previous close price of Rs 3,122. It touched an intraday low of Rs 3,011 till the closing.
