Fresh tumble for Oil on oversupply fears
24/02/2015 09:27
Crude oil futures plunged in the domestic market on Monday as investors and speculators exited positions in the energy commodity after Libya, the holder of Africa’s biggest oil reserves, resumed a crude pipeline after a fire while Oman said that it intends to up production by as much as possible, widening a global supply glut. Oil fields in eastern Libya restarted crude supply to Hariga port after a pipeline was repaired while Oman, the biggest Middle East producer outside of the OPEC said that it plans to boost production to 980,000 barrels per day in 2015. Meanwhile, an OPEC official in an interview to a media news channel, ruled out the prospect of an OPEC emergency meeting to discuss production. Sales of US existing homes in the US slumped to the lowest level in nine months in January while manufacturing in the Texas region shrank this month, signaling a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. US existing home sales fell by 4.9 per cent to an annualized rate of 4.82 million in January 2015. The gauge measuring Dallas manufacturing activity fell to -11.2 in February from -4.4 in January, with a reading below zero signaling contraction. Oil may extend a decline today as sentiment remains bearish amid worries over a widening supply glut. At the MCX, Crude oil futures, for the March 2015 contract, closed at Rs 3,096 per barrel, down by 3.7 per cent, after opening at Rs 3,196, against the previous close price of Rs 3,215. It touched an intraday low of Rs 3,055 till the closing.
24/02/2015 09:27
Crude oil futures plunged in the domestic market on Monday as investors and speculators exited positions in the energy commodity after Libya, the holder of Africa’s biggest oil reserves, resumed a crude pipeline after a fire while Oman said that it intends to up production by as much as possible, widening a global supply glut. Oil fields in eastern Libya restarted crude supply to Hariga port after a pipeline was repaired while Oman, the biggest Middle East producer outside of the OPEC said that it plans to boost production to 980,000 barrels per day in 2015. Meanwhile, an OPEC official in an interview to a media news channel, ruled out the prospect of an OPEC emergency meeting to discuss production. Sales of US existing homes in the US slumped to the lowest level in nine months in January while manufacturing in the Texas region shrank this month, signaling a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. US existing home sales fell by 4.9 per cent to an annualized rate of 4.82 million in January 2015. The gauge measuring Dallas manufacturing activity fell to -11.2 in February from -4.4 in January, with a reading below zero signaling contraction. Oil may extend a decline today as sentiment remains bearish amid worries over a widening supply glut. At the MCX, Crude oil futures, for the March 2015 contract, closed at Rs 3,096 per barrel, down by 3.7 per cent, after opening at Rs 3,196, against the previous close price of Rs 3,215. It touched an intraday low of Rs 3,055 till the closing.
