Weak demand outlook worsens oil sell-off
21/01/2015 09:18
Crude oil futures tumbled in the domestic and overseas market on Tuesday as investors and speculators exited positions in the energy commodity as Iraqi oil output reached record highs while the OPEC’s second biggest oil producer said that it will bolster exports, threatening to boost a global supply glut. The IMF made its steepest downward revision to its global economic growth forecast for 2015 which was cut to 3.5 per cent from an earlier estimate of 3.8 per cent as weakness in Japan, China and Euro area overshadow an improving US economic outlook. Global economic growth may stand at 3.7 per cent in 2016, down from 4 per cent predicted earlier. China’s economy grew at the weakest pace in 24 years in 2014 as a lingering property market slump curbed demand. Asia’s biggest economy grew by 7.4 per cent last year, as China missed the official growth target of 7.5 per cent while Q4 GDP growth stood at 7.3 per cent, year on year. Confidence among American homebuilders fell in January, signaling a weakening housing recovery in the world’s biggest economy, dimming the demand outlook for the fuel. The gauge measuring US homebuilder sentiment fell to 57 this month from 58 in December. Oil may extend a sell-off today ahead of data which may show a rise in US crude stockpiles last week. At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 2,941 per barrel, down by 1.41 per cent, after opening at Rs 2,988, against the previous close price of Rs 2,983. It touched an intraday low of Rs 2,911 till the closing.
21/01/2015 09:18
Crude oil futures tumbled in the domestic and overseas market on Tuesday as investors and speculators exited positions in the energy commodity as Iraqi oil output reached record highs while the OPEC’s second biggest oil producer said that it will bolster exports, threatening to boost a global supply glut. The IMF made its steepest downward revision to its global economic growth forecast for 2015 which was cut to 3.5 per cent from an earlier estimate of 3.8 per cent as weakness in Japan, China and Euro area overshadow an improving US economic outlook. Global economic growth may stand at 3.7 per cent in 2016, down from 4 per cent predicted earlier. China’s economy grew at the weakest pace in 24 years in 2014 as a lingering property market slump curbed demand. Asia’s biggest economy grew by 7.4 per cent last year, as China missed the official growth target of 7.5 per cent while Q4 GDP growth stood at 7.3 per cent, year on year. Confidence among American homebuilders fell in January, signaling a weakening housing recovery in the world’s biggest economy, dimming the demand outlook for the fuel. The gauge measuring US homebuilder sentiment fell to 57 this month from 58 in December. Oil may extend a sell-off today ahead of data which may show a rise in US crude stockpiles last week. At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 2,941 per barrel, down by 1.41 per cent, after opening at Rs 2,988, against the previous close price of Rs 2,983. It touched an intraday low of Rs 2,911 till the closing.
