Record high US supplies drag down Oil
23/04/2015 09:42
Crude oil futures ended lower in the domestic and overseas market on Wednesday as investors and speculators exited positions in the energy commodity as US oil stockpiles swelled to a fresh record, worsening fears of a global supply glut.
US crude inventories climbed for the fifteenth week on the trot, up 5.3 million barrels to a new high of 489 million barrels in the week ended April 17, 2015, more than double analysts’ estimates of a 2.6 million barrels rise.
Cushing supplies rose by 738,000 barrels last week while refineries operated at 91.2 per cent of capacity, down 1.1 percentage points from the previous week, signaling weak fuel demand in the world’s biggest oil consumer.
However, robust US housing data signaled a pickup in the world’s biggest economy, lifting the demand outlook for the fuel, trimming losses in crude futures.
US home price gains accelerated in February while sales of previously owned homes rose at the fastest pace in four years last month. Home prices climbed 0.7 per cent in February from the previous month, when they rose 0.3 per cent. US existing home sales rose 6.1 per cent to the highest level since September 2013 at 5.19 million annualized pace in March 2015.
Oil may rebound today after a Saudi Arabia-led coalition resumed air strikes against Shiite rebels in Yemen, raising fears that heightened tensions in the Middle East may disrupt crude supplies from the oil rich region.
At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,568 per barrel, down by 0.70 per cent, after opening at Rs 3,580, against the previous close price of Rs 3,593. It touched an intraday low of Rs 3,520 till the closing.
23/04/2015 09:42
Crude oil futures ended lower in the domestic and overseas market on Wednesday as investors and speculators exited positions in the energy commodity as US oil stockpiles swelled to a fresh record, worsening fears of a global supply glut.
US crude inventories climbed for the fifteenth week on the trot, up 5.3 million barrels to a new high of 489 million barrels in the week ended April 17, 2015, more than double analysts’ estimates of a 2.6 million barrels rise.
Cushing supplies rose by 738,000 barrels last week while refineries operated at 91.2 per cent of capacity, down 1.1 percentage points from the previous week, signaling weak fuel demand in the world’s biggest oil consumer.
However, robust US housing data signaled a pickup in the world’s biggest economy, lifting the demand outlook for the fuel, trimming losses in crude futures.
US home price gains accelerated in February while sales of previously owned homes rose at the fastest pace in four years last month. Home prices climbed 0.7 per cent in February from the previous month, when they rose 0.3 per cent. US existing home sales rose 6.1 per cent to the highest level since September 2013 at 5.19 million annualized pace in March 2015.
Oil may rebound today after a Saudi Arabia-led coalition resumed air strikes against Shiite rebels in Yemen, raising fears that heightened tensions in the Middle East may disrupt crude supplies from the oil rich region.
At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,568 per barrel, down by 0.70 per cent, after opening at Rs 3,580, against the previous close price of Rs 3,593. It touched an intraday low of Rs 3,520 till the closing.
