Oil ends tad lower on China factory weakness
05/05/2015 09:36
Crude oil futures ended tad lower in the domestic market on Monday as investors and speculators stayed cautious over booking fresh positions in the energy commodity as manufacturing in China, the world’s second biggest oil consumer, shrank at the fastest pace in a year in April 2015, signaling a worsening economic slowdown, clouding the demand outlook for the fuel.
The gauge measuring China manufacturing fell to 48.9 in April from 49.6 in the previous month, with a reading above 50 signaling expansion, HSBC said.
However, the biggest gain in US factory orders in eight months in March and acceleration in New York business activity this month signaled a rebound in the world’s biggest economy, supporting the demand outlook for the fuel, curbing losses in crude oil futures.
US factory orders jumped 2.1 per cent in March from February, when they fell 0.1 per cent.
Meanwhile, bookings for US non-defence goods excluding aircraft, a proxy for capital spending, inched up 0.1 per cent in March. The gauge measuring business activity in the New York region climbed to 58.1 in April from 50 in March, ISM said.
Oil may rise today as an improving health of the US economy lifts demand outlook.
At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,752 per barrel, down by 0.05 per cent, after opening at Rs 3,795, against the previous close price of Rs 3,754. It touched an intraday low of Rs 3,731 till the closing
05/05/2015 09:36
Crude oil futures ended tad lower in the domestic market on Monday as investors and speculators stayed cautious over booking fresh positions in the energy commodity as manufacturing in China, the world’s second biggest oil consumer, shrank at the fastest pace in a year in April 2015, signaling a worsening economic slowdown, clouding the demand outlook for the fuel.
The gauge measuring China manufacturing fell to 48.9 in April from 49.6 in the previous month, with a reading above 50 signaling expansion, HSBC said.
However, the biggest gain in US factory orders in eight months in March and acceleration in New York business activity this month signaled a rebound in the world’s biggest economy, supporting the demand outlook for the fuel, curbing losses in crude oil futures.
US factory orders jumped 2.1 per cent in March from February, when they fell 0.1 per cent.
Meanwhile, bookings for US non-defence goods excluding aircraft, a proxy for capital spending, inched up 0.1 per cent in March. The gauge measuring business activity in the New York region climbed to 58.1 in April from 50 in March, ISM said.
Oil may rise today as an improving health of the US economy lifts demand outlook.
At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,752 per barrel, down by 0.05 per cent, after opening at Rs 3,795, against the previous close price of Rs 3,754. It touched an intraday low of Rs 3,731 till the closing
