Oil extends rally on lower US output gain
26/03/2015 09:43
Crude oil futures surged in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity as the smallest increase in US crude production since January eased concerns over a worsening global supply glut. US oil output climbed 3,000 barrels per day to 9.42 million barrels in the week ended March 20, the EIA said. Meanwhile, US refineries operated at 89 per cent of capacity last week, up from 88.1 per cent in the prior week, signaling a pickup in fuel demand in the world’s biggest fuel consumer. Investors shrugged off an uptick in US crude stockpiles to the most on records dating back to August 1982. US crude supplies climbed 8.17 million barrels to 466.7 million barrels last week, while supplies at Cushing, Oklahoma, the biggest US oil storage hub, rose 1.91 million barrels to a record 56.3 million barrels last week. Investors cast aside a drop in US durable goods orders in February, down 1.4 per cent from the previous month, signaling a slowdown in manufacturing in the world’s biggest economy. Oil may extend gains today as shrinking US production gains signal easing worries over a supply surplus. At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,094 per barrel, up by 3.30 per cent, after opening at Rs 2,982, against the previous close price of Rs 2,995. It touched an intraday high of Rs 3,111 till the closing.
26/03/2015 09:43
Crude oil futures surged in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity as the smallest increase in US crude production since January eased concerns over a worsening global supply glut. US oil output climbed 3,000 barrels per day to 9.42 million barrels in the week ended March 20, the EIA said. Meanwhile, US refineries operated at 89 per cent of capacity last week, up from 88.1 per cent in the prior week, signaling a pickup in fuel demand in the world’s biggest fuel consumer. Investors shrugged off an uptick in US crude stockpiles to the most on records dating back to August 1982. US crude supplies climbed 8.17 million barrels to 466.7 million barrels last week, while supplies at Cushing, Oklahoma, the biggest US oil storage hub, rose 1.91 million barrels to a record 56.3 million barrels last week. Investors cast aside a drop in US durable goods orders in February, down 1.4 per cent from the previous month, signaling a slowdown in manufacturing in the world’s biggest economy. Oil may extend gains today as shrinking US production gains signal easing worries over a supply surplus. At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,094 per barrel, up by 3.30 per cent, after opening at Rs 2,982, against the previous close price of Rs 2,995. It touched an intraday high of Rs 3,111 till the closing.
