Oil extends decline amid burgeoning US supplies
28/04/2015 09:04
Crude oil futures plunged in the domestic market on Monday as investors and speculators continued to book profits in the energy commodity which hit the highest level this year last week as the worsening conflict in Yemen sparked concerns over supply disruptions from the oil-rich Middle East, and a falling oil rig count signaled lower US production, going forward.
Still, investors remained skeptical amid record US supplies which have surged for 15 straight weeks and now stand at an all-time high of 489 million barrels.
Meanwhile, US services activity expanded at a weaker clip in April while a regional factory gauge plunged, signaling a deepening slowdown in the world’s biggest economy, clouding the demand outlook for the fuel.
The gauge measuring US services fell to 57.8 in April from 59.2 in March, with a reading above 50 signaling expansion. The index measuring manufacturing in the Texas region fell to -16 this month from -17.4 in March, below the reading of 0 that separates expansion from contraction.
Oil may extend its bearish ride today on expectations that US crude stockpiles rose for 16 straight weeks and after Saudi Arabia said that it was willing to supply China additional fuel, if needed.
At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,611 per barrel, down by 1.07 per cent, after opening at Rs 3,642, against the previous close price of Rs 3,650. It touched an intraday low of Rs 3,601 till the closing.
28/04/2015 09:04
Crude oil futures plunged in the domestic market on Monday as investors and speculators continued to book profits in the energy commodity which hit the highest level this year last week as the worsening conflict in Yemen sparked concerns over supply disruptions from the oil-rich Middle East, and a falling oil rig count signaled lower US production, going forward.
Still, investors remained skeptical amid record US supplies which have surged for 15 straight weeks and now stand at an all-time high of 489 million barrels.
Meanwhile, US services activity expanded at a weaker clip in April while a regional factory gauge plunged, signaling a deepening slowdown in the world’s biggest economy, clouding the demand outlook for the fuel.
The gauge measuring US services fell to 57.8 in April from 59.2 in March, with a reading above 50 signaling expansion. The index measuring manufacturing in the Texas region fell to -16 this month from -17.4 in March, below the reading of 0 that separates expansion from contraction.
Oil may extend its bearish ride today on expectations that US crude stockpiles rose for 16 straight weeks and after Saudi Arabia said that it was willing to supply China additional fuel, if needed.
At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,611 per barrel, down by 1.07 per cent, after opening at Rs 3,642, against the previous close price of Rs 3,650. It touched an intraday low of Rs 3,601 till the closing.
