Widening global supply glut drags down Oil
14/01/2015 09:35
Crude oil futures extended a slide in the domestic and overseas market on Tuesday as investors and speculators exited positions in the energy commodity after a report said that US crude oil stockpiles rose last week, signaling weak demand for the fuel in the world’s biggest oil consumer. US crude supplies climbed 3.9 million barrels last week, API said.
The UAE said that it intends to stick to its plan of beefing up production capacity to 3.5 million barrels per day in 2017 from the current 3 million barrels per day as the country stressed that the OPEC can withstand a drop in oil prices.
The World Bank cut its growth forecast for the global economy in 2015 to 3 per cent from 3.4 per cent estimated earlier amid a slowdown in Europe and China, dimming the demand outlook for the fuel.
China’s economic growth forecast for 2015 was slashed to 7.1 per cent from 7.2 per cent earlier, bur that of US was raised to 3.2 per cent from 3 per cent.
Investors cast aside robust US data which showed a rise in job openings to the highest level in almost 14 years in November while small business confidence hit an eight-year high last month. The number of positions waiting to be filled surged by 142,000 to 4.97 million in November, the highest since January 2001, signaling a pickup in the labour market recovery of the world’s biggest economy.
The gauge measuring US small business confidence rose by 2.3 points to 100.4 in December, the highest since October 2006. The index measuring US consumer confidence rose to 51.5 in January from 48.4 in the previous month; IBD/TIPP said.
Oil may extend a sell-off today after Kuwait predicted that the global supply glut will persist at least in H2 2015.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 2,826 per barrel, down by 2.2 per cent, after opening at Rs 2,866, against the previous close price of Rs 2,890. It touched an intraday low of Rs 2,757 till the closing
14/01/2015 09:35
Crude oil futures extended a slide in the domestic and overseas market on Tuesday as investors and speculators exited positions in the energy commodity after a report said that US crude oil stockpiles rose last week, signaling weak demand for the fuel in the world’s biggest oil consumer. US crude supplies climbed 3.9 million barrels last week, API said.
The UAE said that it intends to stick to its plan of beefing up production capacity to 3.5 million barrels per day in 2017 from the current 3 million barrels per day as the country stressed that the OPEC can withstand a drop in oil prices.
The World Bank cut its growth forecast for the global economy in 2015 to 3 per cent from 3.4 per cent estimated earlier amid a slowdown in Europe and China, dimming the demand outlook for the fuel.
China’s economic growth forecast for 2015 was slashed to 7.1 per cent from 7.2 per cent earlier, bur that of US was raised to 3.2 per cent from 3 per cent.
Investors cast aside robust US data which showed a rise in job openings to the highest level in almost 14 years in November while small business confidence hit an eight-year high last month. The number of positions waiting to be filled surged by 142,000 to 4.97 million in November, the highest since January 2001, signaling a pickup in the labour market recovery of the world’s biggest economy.
The gauge measuring US small business confidence rose by 2.3 points to 100.4 in December, the highest since October 2006. The index measuring US consumer confidence rose to 51.5 in January from 48.4 in the previous month; IBD/TIPP said.
Oil may extend a sell-off today after Kuwait predicted that the global supply glut will persist at least in H2 2015.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 2,826 per barrel, down by 2.2 per cent, after opening at Rs 2,866, against the previous close price of Rs 2,890. It touched an intraday low of Rs 2,757 till the closing
