Easing US supply glut boosts Oil
16/04/2015 09:45
Crude oil futures surged in the domestic and overseas market on Wednesday as investors and speculators booked fresh positions in the energy commodity as US crude supplies last week rose at the weakest pace since January, easing concerns over a global supply glut.
US oil stockpiles climbed 1.29 million barrels to 483.7 million barrels in the week ended April 10, 2015, lower than analysts’ estimates of a 3.6 million barrels gain. US oil production fell 20,000 barrels per day to 9.38 million barrels per day last week. Meanwhile, refineries operated at 92.3 per cent of capacity last week, up 2.2 percentage points from the previous week, signaling a pickup in fuel demand.
Investors weighed positive US economic data which lifted the demand outlook for the fuel. The Federal Reserve’s Beige Book showed that the world’s biggest economy expanded from mid-February to the end of March led by gains in retail sales and rising demand for business services.
US home builder sentiment rose in April while factory output eked out a gain for the first time in four months in March. The gauge measuring US home builder sentiment climbed to the highest level since January at 56 in April from 52 in March. US manufacturing output rose 0.1 per cent in March from the previous month, when it fell 0.2 per cent, but overall industrial output dropped 0.6 per cent.
Oil may extend gains today amid easing worries over a global supply glut as US production cools.
At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,496 per barrel, up by 4.61 per cent, after opening at Rs 3,354, against the previous close price of Rs 3,342. It touched an intraday high of Rs 3,505 till the closing.
16/04/2015 09:45
Crude oil futures surged in the domestic and overseas market on Wednesday as investors and speculators booked fresh positions in the energy commodity as US crude supplies last week rose at the weakest pace since January, easing concerns over a global supply glut.
US oil stockpiles climbed 1.29 million barrels to 483.7 million barrels in the week ended April 10, 2015, lower than analysts’ estimates of a 3.6 million barrels gain. US oil production fell 20,000 barrels per day to 9.38 million barrels per day last week. Meanwhile, refineries operated at 92.3 per cent of capacity last week, up 2.2 percentage points from the previous week, signaling a pickup in fuel demand.
Investors weighed positive US economic data which lifted the demand outlook for the fuel. The Federal Reserve’s Beige Book showed that the world’s biggest economy expanded from mid-February to the end of March led by gains in retail sales and rising demand for business services.
US home builder sentiment rose in April while factory output eked out a gain for the first time in four months in March. The gauge measuring US home builder sentiment climbed to the highest level since January at 56 in April from 52 in March. US manufacturing output rose 0.1 per cent in March from the previous month, when it fell 0.2 per cent, but overall industrial output dropped 0.6 per cent.
Oil may extend gains today amid easing worries over a global supply glut as US production cools.
At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,496 per barrel, up by 4.61 per cent, after opening at Rs 3,354, against the previous close price of Rs 3,342. It touched an intraday high of Rs 3,505 till the closing.
