Record high US supplies drag down Oil
12/02/2015 09:10
Crude oil futures slumped in the domestic and overseas market on Wednesday as US crude oil stockpiles rose to the highest level in more than three decades, exasperating a global supply glut.
Oil stockpiles in the US climbed by 4.87 million barrels to 417.9 million barrels in the week ended February 6, the highest on records going back to 1982, the EIA said.
Crude production in the US climbed 49,000 barrels per day to 9.23 million barrels per day, the highest level since records dating back to 1983.
Oil Inventories at Cushing, Oklahoma, the largest US oil storage hub climbed by 1.21 million barrels to the highest level since July 2013 to 42.6 million barrels last week. Refineries in the US operated at 90 per cent of their capacity, up from 89.9 per cent in the previous week.
Investors shrugged off comments from Saudi Arabian official who saw improving crude demand amid signs that prices are stabilizing while IEA said that global oil demand growth this year may accelerate to 1 per cent from 0.7 per cent in 2014.
Meanwhile, Iraq, Kuwait and Iran joined Saudi Arabia in February in cutting oil prices for Asia, a sign that the OPEC is battling to defend market share.
US budget deficit widened to USD 17.5 billion in January 2015 from USD 10.3 billion a year ago.
Oil may extend losses as burgeoning US supplies boost a supply surplus.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 3,156 per barrel, down by 2.8 per cent, after opening at Rs 3,225, against the previous close price of Rs 3,247. It touched an intraday low of Rs 3,090 till the closing.
12/02/2015 09:10
Crude oil futures slumped in the domestic and overseas market on Wednesday as US crude oil stockpiles rose to the highest level in more than three decades, exasperating a global supply glut.
Oil stockpiles in the US climbed by 4.87 million barrels to 417.9 million barrels in the week ended February 6, the highest on records going back to 1982, the EIA said.
Crude production in the US climbed 49,000 barrels per day to 9.23 million barrels per day, the highest level since records dating back to 1983.
Oil Inventories at Cushing, Oklahoma, the largest US oil storage hub climbed by 1.21 million barrels to the highest level since July 2013 to 42.6 million barrels last week. Refineries in the US operated at 90 per cent of their capacity, up from 89.9 per cent in the previous week.
Investors shrugged off comments from Saudi Arabian official who saw improving crude demand amid signs that prices are stabilizing while IEA said that global oil demand growth this year may accelerate to 1 per cent from 0.7 per cent in 2014.
Meanwhile, Iraq, Kuwait and Iran joined Saudi Arabia in February in cutting oil prices for Asia, a sign that the OPEC is battling to defend market share.
US budget deficit widened to USD 17.5 billion in January 2015 from USD 10.3 billion a year ago.
Oil may extend losses as burgeoning US supplies boost a supply surplus.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 3,156 per barrel, down by 2.8 per cent, after opening at Rs 3,225, against the previous close price of Rs 3,247. It touched an intraday low of Rs 3,090 till the closing.
