Oil extends stellar rally on demand hopes
17/04/2015 09:40
Crude oil futures surged in the domestic market on Thursday as investors and speculators booked fresh positions in the energy commodity as traders continued to digest a smaller than expected rise in US crude oil stockpiles last week and a retreat in US production, easing concerns over a global supply glut.
The OPEC, which accounts for around 40 per cent of global oil supply, sees demand for its crude rising to 29.3 million barrels per day in 2015, up 80,000 barrels per day from previously estimated.
The OPEC also sees US oil production boom leveling off this year with lower US production expected in the second half of the year. Non-OPEC supply is expected to rise by 680,000 barrels per day in 2015, down from a previous forecast of 850,000 barrels per day increase.
However, OPEC pumped about 30.79 million barrels per day in March 2015, an increase of 810,000 barrels per day from the previous month.
The number of Americans who filed for applications seeking unemployment benefits remained below 300,000 for a sixth straight week while housing starts climbed in March, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel.
US jobless claims climbed 12,000 to 294,000 in the week ended April 11, 2015. US housing starts climbed 2 per cent to a 926,000 annualized rate in March 2015 from the previous month, when they plunged 15.3 per cent.
Oil may extend gains today ahead of key US data including consumer sentiment and leading indicator which may show a pickup in the economy, lifting demand prospects.
At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,559 per barrel, up by 1.8 per cent, after opening at Rs 3,512, against the previous close price of Rs 3,496. It touched an intraday high of Rs 3,580 till the closing.
17/04/2015 09:40
Crude oil futures surged in the domestic market on Thursday as investors and speculators booked fresh positions in the energy commodity as traders continued to digest a smaller than expected rise in US crude oil stockpiles last week and a retreat in US production, easing concerns over a global supply glut.
The OPEC, which accounts for around 40 per cent of global oil supply, sees demand for its crude rising to 29.3 million barrels per day in 2015, up 80,000 barrels per day from previously estimated.
The OPEC also sees US oil production boom leveling off this year with lower US production expected in the second half of the year. Non-OPEC supply is expected to rise by 680,000 barrels per day in 2015, down from a previous forecast of 850,000 barrels per day increase.
However, OPEC pumped about 30.79 million barrels per day in March 2015, an increase of 810,000 barrels per day from the previous month.
The number of Americans who filed for applications seeking unemployment benefits remained below 300,000 for a sixth straight week while housing starts climbed in March, signaling a pickup in the world’s biggest economy, lifting the demand outlook for the fuel.
US jobless claims climbed 12,000 to 294,000 in the week ended April 11, 2015. US housing starts climbed 2 per cent to a 926,000 annualized rate in March 2015 from the previous month, when they plunged 15.3 per cent.
Oil may extend gains today ahead of key US data including consumer sentiment and leading indicator which may show a pickup in the economy, lifting demand prospects.
At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,559 per barrel, up by 1.8 per cent, after opening at Rs 3,512, against the previous close price of Rs 3,496. It touched an intraday high of Rs 3,580 till the closing.
