US strike lifts Oil
03/02/2015 09:28
Crude oil futures surged in the domestic and overseas market on Monday as investors and speculators booked fresh positions in the energy commodity as the biggest strike by US workers since 1980s threatened to tighten fuel supplies in the world’s biggest energy consumer.
A strike by the United Steelworkers Union (USW) at US refineries that make up for 10 per cent of the country’s capacity continued for a second day at nine states and has led to the shutdown of one plant while management has assumed control of operations at six other plants.
The USW which represents workers at over 200 refineries, terminals, pipelines and chemical plants called a strike on nine facilities Sunday after failing to renew a labour contract.
A falling rig count signaled lower US production that may ease a supply surplus.
Investors cast aside tepid US data which showed the slowest expansion in US manufacturing in a year last month and the biggest drop in consumer spending in five years in December, clouding the demand outlook for the fuel in the world’s biggest economy which seems to have lost momentum.
The ISM US Manufacturing index fell to 53.5 in January from 55.1 in December, with a reading above 50 signaling expansion.
US consumer spending fell by the most since September 2009, down 0.3 per cent in December from November when it rose a revised 0.5 per cent.
Oil may rise today amid fears that a prolonged US strike may tighten supplies.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 3,053 per barrel, up by 7 per cent, after opening at Rs 2,870, against the previous close price of Rs 2,855. It touched an intraday high of Rs 3,100 till the closing.
03/02/2015 09:28
Crude oil futures surged in the domestic and overseas market on Monday as investors and speculators booked fresh positions in the energy commodity as the biggest strike by US workers since 1980s threatened to tighten fuel supplies in the world’s biggest energy consumer.
A strike by the United Steelworkers Union (USW) at US refineries that make up for 10 per cent of the country’s capacity continued for a second day at nine states and has led to the shutdown of one plant while management has assumed control of operations at six other plants.
The USW which represents workers at over 200 refineries, terminals, pipelines and chemical plants called a strike on nine facilities Sunday after failing to renew a labour contract.
A falling rig count signaled lower US production that may ease a supply surplus.
Investors cast aside tepid US data which showed the slowest expansion in US manufacturing in a year last month and the biggest drop in consumer spending in five years in December, clouding the demand outlook for the fuel in the world’s biggest economy which seems to have lost momentum.
The ISM US Manufacturing index fell to 53.5 in January from 55.1 in December, with a reading above 50 signaling expansion.
US consumer spending fell by the most since September 2009, down 0.3 per cent in December from November when it rose a revised 0.5 per cent.
Oil may rise today amid fears that a prolonged US strike may tighten supplies.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 3,053 per barrel, up by 7 per cent, after opening at Rs 2,870, against the previous close price of Rs 2,855. It touched an intraday high of Rs 3,100 till the closing.
