Oil soars on dollar weakness, supply data
30/04/2015 09:39
Crude oil futures surged in the domestic and overseas market on Wednesday as investors and speculators booked fresh positions in the energy commodity as a weaker dollar boosted the demand for the fuel as an alternative asset. Weaker greenback makes crude cheaper for those holding other currencies, thus bolstering demand. Further, better than expected US stockpiles data eased fears over a worsening global supply glut. While US crude supplies rose for a sixteenth week on the trot to a record high, those at Cushing, the US’ largest oil storage hub fell. EIA said that US crude supplies climbed 1.91 million barrels to 490.9 million barrels in the week ended April 24, 2015, compared to analysts estimates of a 3.3 million barrels uptick. Meanwhile, stockpiles at Cushing fell by 514,000 barrels to 61.7 million barrels last week. Refineries in the US operated at 91.3 per cent of their capacity, up from 91.2 per cent in the previous week, signaling a pickup in fuel demand. Investors shrugged off tepid US GDP data which showed that the world’s biggest economy grew only 0.2 per cent in Q1 following a 2.2 per cent increase in the previous quarter with gains in consumer spending slowing to 1.9 per cent from 4.4 per cent in Q4. Meanwhile, contracts to buy previously owned homes in the US rose sharply last month, signaling a pickup in the country’s housing market, supporting crude. US pending home sales climbed 1.1 per cent in March from the previous month when they climbed a revised 3.6 per cent. Oil may extend a rally today as slowing gains in US supplies boost sentiment. At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,755 per barrel, up by 3.56 per cent, after opening at Rs 3,607, against the previous close price of Rs 3,626. It touched an intraday high of Rs 3,771 till the closing.
30/04/2015 09:39
Crude oil futures surged in the domestic and overseas market on Wednesday as investors and speculators booked fresh positions in the energy commodity as a weaker dollar boosted the demand for the fuel as an alternative asset. Weaker greenback makes crude cheaper for those holding other currencies, thus bolstering demand. Further, better than expected US stockpiles data eased fears over a worsening global supply glut. While US crude supplies rose for a sixteenth week on the trot to a record high, those at Cushing, the US’ largest oil storage hub fell. EIA said that US crude supplies climbed 1.91 million barrels to 490.9 million barrels in the week ended April 24, 2015, compared to analysts estimates of a 3.3 million barrels uptick. Meanwhile, stockpiles at Cushing fell by 514,000 barrels to 61.7 million barrels last week. Refineries in the US operated at 91.3 per cent of their capacity, up from 91.2 per cent in the previous week, signaling a pickup in fuel demand. Investors shrugged off tepid US GDP data which showed that the world’s biggest economy grew only 0.2 per cent in Q1 following a 2.2 per cent increase in the previous quarter with gains in consumer spending slowing to 1.9 per cent from 4.4 per cent in Q4. Meanwhile, contracts to buy previously owned homes in the US rose sharply last month, signaling a pickup in the country’s housing market, supporting crude. US pending home sales climbed 1.1 per cent in March from the previous month when they climbed a revised 3.6 per cent. Oil may extend a rally today as slowing gains in US supplies boost sentiment. At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,755 per barrel, up by 3.56 per cent, after opening at Rs 3,607, against the previous close price of Rs 3,626. It touched an intraday high of Rs 3,771 till the closing.
