Spending cuts spark Oil rally
13/02/2015 09:25
Crude oil futures surged in the domestic and overseas market on Thursday as investors and speculators booked fresh positions in the energy commodity amid bets that a fall in US drilling may slow production, easing a global supply glut. Apache Corp said that it is cutting the number of drilling rigs by 70 per cent while Total, BP and Royal Dutch Shell Plc are also slashing spending. Oil explorers in the US cut the number of machines in service to 1,140 in the week ended February 6, the ninth straight week of decline. Russia, Venezuela and Ecuador said that they are committed to strengthening the market. Investors shrugged off weaker US data which showed an uptick in the number of applications seeking jobless benefits and a pullback in consumer spending last month, signaling a slight loss of momentum in the world’s biggest economy. US jobless claims rose by 25,000 to 304,000 in the week ended February 7, 2015. Retail sales fell 0.8 per cent in January from December when they declined 0.9 per cent. Oil may extend gains today amid speculation that a drilling slowdown may curb a supply surplus. At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 3,170 per barrel, up by 3.09 per cent, after opening at Rs 3,078, against the previous close price of Rs 3,075. It touched an intraday high of Rs 3,198 till the closing.
13/02/2015 09:25
Crude oil futures surged in the domestic and overseas market on Thursday as investors and speculators booked fresh positions in the energy commodity amid bets that a fall in US drilling may slow production, easing a global supply glut. Apache Corp said that it is cutting the number of drilling rigs by 70 per cent while Total, BP and Royal Dutch Shell Plc are also slashing spending. Oil explorers in the US cut the number of machines in service to 1,140 in the week ended February 6, the ninth straight week of decline. Russia, Venezuela and Ecuador said that they are committed to strengthening the market. Investors shrugged off weaker US data which showed an uptick in the number of applications seeking jobless benefits and a pullback in consumer spending last month, signaling a slight loss of momentum in the world’s biggest economy. US jobless claims rose by 25,000 to 304,000 in the week ended February 7, 2015. Retail sales fell 0.8 per cent in January from December when they declined 0.9 per cent. Oil may extend gains today amid speculation that a drilling slowdown may curb a supply surplus. At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 3,170 per barrel, up by 3.09 per cent, after opening at Rs 3,078, against the previous close price of Rs 3,075. It touched an intraday high of Rs 3,198 till the closing.
