Renewed Middle East Tensions lift Oil
24/04/2015 08:57
Crude oil futures soared in the domestic market on Thursday, while skyrocketing to a 2015 high in the overseas market as fresh tensions in the Middle East raised speculation of disruption of crude oil supplies from the oil-rich region.
A Saudi-led coalition conducted airstrikes against Iran backed Shiite rebels in Yemen. Warplanes from Saudi Arabia and allies hit Houthi militiamen and military bases in Yemen; just two days after Riyadh had announced that it was ending its military campaign in Yemen.
US oil production edged lower for a second week on the trot, easing concerns over a supply glut. US oil output fell by 18,000 barrels per day to 9.37 million barrels per day in the week ended April 17, 2015, the EIA said.
A weaker dollar also boosted the demand for the fuel as an alternative asset. Weaker greenback makes crude cheaper for those holding other currencies, thus bolstering demand.
Investors cast aside tepid US data which signaled an uptick in application for seeking unemployment benefits last week, a drop in new home sales in March and a slowdown in manufacturing activity this month, signaling a cooling recovery in the world’s biggest economy that may curb US fuel demand.
US jobless claims climbed 1,000 to 295,000 in the week ended April 18, 2015 while new home sales tumbled 11.4 per cent to the lowest level in four months at an annualized pace of 481,000 in March 2015 and a gauge of US manufacturing fell to 54.2 in April from 55.7 in March, with a reading above 50 signaling expansion.
Oil may extend a rally today as traders weigh heightened Middle East tensions.
At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,688 per barrel, up by 3.36 per cent, after opening at Rs 3,561, against the previous close price of Rs 3,568. It touched an intraday high of Rs 3,710 till the closing.
24/04/2015 08:57
Crude oil futures soared in the domestic market on Thursday, while skyrocketing to a 2015 high in the overseas market as fresh tensions in the Middle East raised speculation of disruption of crude oil supplies from the oil-rich region.
A Saudi-led coalition conducted airstrikes against Iran backed Shiite rebels in Yemen. Warplanes from Saudi Arabia and allies hit Houthi militiamen and military bases in Yemen; just two days after Riyadh had announced that it was ending its military campaign in Yemen.
US oil production edged lower for a second week on the trot, easing concerns over a supply glut. US oil output fell by 18,000 barrels per day to 9.37 million barrels per day in the week ended April 17, 2015, the EIA said.
A weaker dollar also boosted the demand for the fuel as an alternative asset. Weaker greenback makes crude cheaper for those holding other currencies, thus bolstering demand.
Investors cast aside tepid US data which signaled an uptick in application for seeking unemployment benefits last week, a drop in new home sales in March and a slowdown in manufacturing activity this month, signaling a cooling recovery in the world’s biggest economy that may curb US fuel demand.
US jobless claims climbed 1,000 to 295,000 in the week ended April 18, 2015 while new home sales tumbled 11.4 per cent to the lowest level in four months at an annualized pace of 481,000 in March 2015 and a gauge of US manufacturing fell to 54.2 in April from 55.7 in March, with a reading above 50 signaling expansion.
Oil may extend a rally today as traders weigh heightened Middle East tensions.
At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,688 per barrel, up by 3.36 per cent, after opening at Rs 3,561, against the previous close price of Rs 3,568. It touched an intraday high of Rs 3,710 till the closing.
