Oil plummets on Iran deal
06/04/2015 09:44
Crude oil futures plunged in the domestic and overseas market on Thursday after Iran and six global powers reached an accord over a landmark nuclear deal that could ease Western sanctions against the Islamic nation, boosting Iran’s crude oil exports, exacerbating a global oil supply glut.
The preliminary accord paves way for a final deal to be reached by June 30 which would loosen US and European Union financial and economic sanctions against Iran. Iran on its part has agreed to close over two-thirds of its installed centrifuges capable of producing uranium that may be used to build a bomb, dismantle a reactor that can be used in plutonium production, while accepting intrusive inspection, verification and compliance.
Crude oil inventories in the US climbed for the twelfth straight week to a record, signaling weaker demand for the fuel in the world’s biggest oil consumer. US crude stockpiles jumped 4.8 million barrels to 471.4 million barrels in the week ended March 27, 2015, the EIA said.
Investors cast aside robust US economic data which showed that the number of applications for claiming jobless benefits fell in the US, the trade gap shrank to a five-year low in February 2015 and factory orders rose, signaling a pickup in the world’s biggest economy. US jobless claims fell by 20,000 to 268,000 in the week ended March 28, 2015. US factory orders rose 0.2 per cent in February from the previous month, when they declined 0.7 per cent. US trade deficit narrowed USD 7.2 billion to USD 35.4 billion in February, the lowest since October 2009 as imports contracted due to a West Coast port dispute that curbed overseas purchases.
Oil may extend losses today as investors weigh the impact of a historic Iran nuclear accord.
At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,017 per barrel, down by 1.15 per cent, after opening at Rs 3,125, against the previous close price of Rs 3,152. It touched an intraday low of Rs 2,999 till the closing.
06/04/2015 09:44
Crude oil futures plunged in the domestic and overseas market on Thursday after Iran and six global powers reached an accord over a landmark nuclear deal that could ease Western sanctions against the Islamic nation, boosting Iran’s crude oil exports, exacerbating a global oil supply glut.
The preliminary accord paves way for a final deal to be reached by June 30 which would loosen US and European Union financial and economic sanctions against Iran. Iran on its part has agreed to close over two-thirds of its installed centrifuges capable of producing uranium that may be used to build a bomb, dismantle a reactor that can be used in plutonium production, while accepting intrusive inspection, verification and compliance.
Crude oil inventories in the US climbed for the twelfth straight week to a record, signaling weaker demand for the fuel in the world’s biggest oil consumer. US crude stockpiles jumped 4.8 million barrels to 471.4 million barrels in the week ended March 27, 2015, the EIA said.
Investors cast aside robust US economic data which showed that the number of applications for claiming jobless benefits fell in the US, the trade gap shrank to a five-year low in February 2015 and factory orders rose, signaling a pickup in the world’s biggest economy. US jobless claims fell by 20,000 to 268,000 in the week ended March 28, 2015. US factory orders rose 0.2 per cent in February from the previous month, when they declined 0.7 per cent. US trade deficit narrowed USD 7.2 billion to USD 35.4 billion in February, the lowest since October 2009 as imports contracted due to a West Coast port dispute that curbed overseas purchases.
Oil may extend losses today as investors weigh the impact of a historic Iran nuclear accord.
At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,017 per barrel, down by 1.15 per cent, after opening at Rs 3,125, against the previous close price of Rs 3,152. It touched an intraday low of Rs 2,999 till the closing.
