Upbeat US data, drilling slowdown lifts Oil
22/01/2015 09:20
Crude oil futures closed higher in the domestic and overseas market on Wednesday as investors and speculators booked fresh positions in the energy commodity after builders in the US broke ground on more homes last month, signaling a pickup in the housing market of the world’s biggest economy, lifting the demand outlook for the fuel.
US housing starts climbed by 4.4 per cent to an annual pace of 1.09 million in December 2014 over the previous month.
Speculation that prices near the lowest level in five and a half years may slow drilling in the US supported sentiment. BHP Billiton, the biggest overseas investor in US shale, said that it will slash the number of active drilling rigs in the country by almost 40 per cent.
The IEA said that the plunge in oil prices may discourage investment in all types of energy needed to meet future demand.
According to Bloomberg, OPEC’s Secretary-General Abdalla El-Badri saw crude remaining at USD 40-USD 50 per barrel rather than dropping to as low as USD 20-USD 25 per barrel.
A rise in US crude stockpiles signaled weaker demand for the fuel in the world’s biggest oil consumer, curbing gains in oil futures. US crude oil inventories climbed by 5.7 million barrels last week, the American Petroleum Institute (API) said.
Oil may fall today after Iraq stressed that it may need to step up production and exports to make up for lower prices, signaling a global supply glut.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 2,948 per barrel, up by 0.24 per cent, after opening at Rs 2,924, against the previous close price of Rs 2,941. It touched an intraday high of Rs 2,989 till the closing.
22/01/2015 09:20
Crude oil futures closed higher in the domestic and overseas market on Wednesday as investors and speculators booked fresh positions in the energy commodity after builders in the US broke ground on more homes last month, signaling a pickup in the housing market of the world’s biggest economy, lifting the demand outlook for the fuel.
US housing starts climbed by 4.4 per cent to an annual pace of 1.09 million in December 2014 over the previous month.
Speculation that prices near the lowest level in five and a half years may slow drilling in the US supported sentiment. BHP Billiton, the biggest overseas investor in US shale, said that it will slash the number of active drilling rigs in the country by almost 40 per cent.
The IEA said that the plunge in oil prices may discourage investment in all types of energy needed to meet future demand.
According to Bloomberg, OPEC’s Secretary-General Abdalla El-Badri saw crude remaining at USD 40-USD 50 per barrel rather than dropping to as low as USD 20-USD 25 per barrel.
A rise in US crude stockpiles signaled weaker demand for the fuel in the world’s biggest oil consumer, curbing gains in oil futures. US crude oil inventories climbed by 5.7 million barrels last week, the American Petroleum Institute (API) said.
Oil may fall today after Iraq stressed that it may need to step up production and exports to make up for lower prices, signaling a global supply glut.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 2,948 per barrel, up by 0.24 per cent, after opening at Rs 2,924, against the previous close price of Rs 2,941. It touched an intraday high of Rs 2,989 till the closing.
