Oil plunges on swelling US inventories
09/04/2015 09:43
Crude oil futures tumbled in the domestic and overseas market on Wednesday as investors and speculators exited positions in the energy commodity after oil storage in the US hit a fresh record as inventories soared by the most since March 2001, exacerbating a global supply glut.
US oil supplies rose 10.95 million barrels to 482.4 million barrels in the week ended April 3, more than triple analysts’ estimates of a 3.25 million barrels rise.
Stockpiles of the fuel at Cushing, Oklahoma, the biggest US oil storage hub climbed by 1.2 million barrels to a fresh high of 60.2 million barrels last week, the EIA said. US cranked up output by 18,000 barrels per day to 9.4 million barrels per day last week.
Meanwhile, Saudi Arabia, the world’s biggest oil exporter boosted crude production to a record 10.3 million barrels per day in March.
Oil may slide further into the bear terrain today amid concerns over a widening global supply surplus.
At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,182 per barrel, down by 4.3 per cent, after opening at Rs 3,303, against the previous close price of Rs 3,325. It touched an intraday low of Rs 3,166 till the closing.
09/04/2015 09:43
Crude oil futures tumbled in the domestic and overseas market on Wednesday as investors and speculators exited positions in the energy commodity after oil storage in the US hit a fresh record as inventories soared by the most since March 2001, exacerbating a global supply glut.
US oil supplies rose 10.95 million barrels to 482.4 million barrels in the week ended April 3, more than triple analysts’ estimates of a 3.25 million barrels rise.
Stockpiles of the fuel at Cushing, Oklahoma, the biggest US oil storage hub climbed by 1.2 million barrels to a fresh high of 60.2 million barrels last week, the EIA said. US cranked up output by 18,000 barrels per day to 9.4 million barrels per day last week.
Meanwhile, Saudi Arabia, the world’s biggest oil exporter boosted crude production to a record 10.3 million barrels per day in March.
Oil may slide further into the bear terrain today amid concerns over a widening global supply surplus.
At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,182 per barrel, down by 4.3 per cent, after opening at Rs 3,303, against the previous close price of Rs 3,325. It touched an intraday low of Rs 3,166 till the closing.
