Oil rebounds on China demand hopes
21/04/2015 09:29
Crude oil futures surged in the domestic market on Monday as investors and speculators booked fresh positions in the energy commodity as an ongoing drilling slowdown in the US evident by a nineteenth straight drop in the weekly rig count signaled slower oil production, easing fears over a global supply glut.
Further, the People’s Bank of China slashed the reserve requirements for lenders for the second time in less than two months in a bid to help stave off a worsening slowdown in the world’s second biggest economy, lifting the demand outlook for the fuel. China’s central bank cut the amount that banks need to set aside as reserves by 1 percentage point or 100 basis points to 18.5 per cent.
Oil may fall today after Saudi Arabia signaled that the country likely pumped in a record 10 million barrels per day of oil in April, just as it did in March, widening a supply surplus.
At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,531 per barrel, up by 1.06 per cent, after opening at Rs 3,529, against the previous close price of Rs 3,494. It touched an intraday high of Rs 3,577 till the closing.
21/04/2015 09:29
Crude oil futures surged in the domestic market on Monday as investors and speculators booked fresh positions in the energy commodity as an ongoing drilling slowdown in the US evident by a nineteenth straight drop in the weekly rig count signaled slower oil production, easing fears over a global supply glut.
Further, the People’s Bank of China slashed the reserve requirements for lenders for the second time in less than two months in a bid to help stave off a worsening slowdown in the world’s second biggest economy, lifting the demand outlook for the fuel. China’s central bank cut the amount that banks need to set aside as reserves by 1 percentage point or 100 basis points to 18.5 per cent.
Oil may fall today after Saudi Arabia signaled that the country likely pumped in a record 10 million barrels per day of oil in April, just as it did in March, widening a supply surplus.
At the MCX, Crude oil futures, for the April 2015 contract, closed at Rs 3,531 per barrel, up by 1.06 per cent, after opening at Rs 3,529, against the previous close price of Rs 3,494. It touched an intraday high of Rs 3,577 till the closing.
