Oil plunges on bearish supply data
05/02/2015 09:21
Crude oil futures tumbled in the domestic and overseas market on Wednesday as investors and speculators exited positions in the energy commodity after US crude stockpiles surged to a record, signaling weakening demand for the fuel in the world’s biggest oil consumer.
Further, talks between oil companies and United Steelworkers Union (USW) resumed in a bid to resolve the biggest US oil refinery strike by US workers since 1980s, easing worries over tighter supplies.
US crude stockpiles rose 6.33 million barrels to 413.1 million barrels in the week ended January 30, 2015, the highest level since weekly records began in 1982.
Production which has topped the 9 million barrels per day mark every week since October, stood at 9.18 million barrels per day last week, the EIA said. Crude stockpiles at Cushing, Oklahoma, the biggest US oil storage hub, climbed 2.52 million barrels to 41.4 million barrels last week.
Abu Dhabi which holds nearly 6 per cent of world’s oil reduced export prices for its crude for the seventh straight month to the lowest level since 2009.
Investors cast aside robust US data which showed that private sector hiring topped the 200,000 mark for a fifth month on the trot in January while services growth accelerated, signaling a pickup in the world’s biggest economy. Private sector employment rose by 213,000 in January after a 253,000 gain in December. The gauge measuring US services rose to 56.7 last month from 56.5 in December, with a reading above 50 signaling expansion.
Oil may extend a decline as record US supplies dampen sentiment, worsening a global supply glut.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 3,064 per barrel, down by 5 per cent, after opening at Rs 3,236, against the previous close price of Rs 3,226. It touched an intraday low of Rs 3,051 till the closing.
05/02/2015 09:21
Crude oil futures tumbled in the domestic and overseas market on Wednesday as investors and speculators exited positions in the energy commodity after US crude stockpiles surged to a record, signaling weakening demand for the fuel in the world’s biggest oil consumer.
Further, talks between oil companies and United Steelworkers Union (USW) resumed in a bid to resolve the biggest US oil refinery strike by US workers since 1980s, easing worries over tighter supplies.
US crude stockpiles rose 6.33 million barrels to 413.1 million barrels in the week ended January 30, 2015, the highest level since weekly records began in 1982.
Production which has topped the 9 million barrels per day mark every week since October, stood at 9.18 million barrels per day last week, the EIA said. Crude stockpiles at Cushing, Oklahoma, the biggest US oil storage hub, climbed 2.52 million barrels to 41.4 million barrels last week.
Abu Dhabi which holds nearly 6 per cent of world’s oil reduced export prices for its crude for the seventh straight month to the lowest level since 2009.
Investors cast aside robust US data which showed that private sector hiring topped the 200,000 mark for a fifth month on the trot in January while services growth accelerated, signaling a pickup in the world’s biggest economy. Private sector employment rose by 213,000 in January after a 253,000 gain in December. The gauge measuring US services rose to 56.7 last month from 56.5 in December, with a reading above 50 signaling expansion.
Oil may extend a decline as record US supplies dampen sentiment, worsening a global supply glut.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 3,064 per barrel, down by 5 per cent, after opening at Rs 3,236, against the previous close price of Rs 3,226. It touched an intraday low of Rs 3,051 till the closing.
