Robust US data supports Oil even as OPEC cuts outlook
12/12/2014 09:11
Crude oil futures posted modest gains in the domestic market on Thursday as investors and speculators booked fresh positions in the energy commodity as better than expected US retail sales data and a dip in unemployment claims last week signaled underlying strength in the world’s biggest economy.
US retail sales climbed 0.7 per cent in November over the previous month when they climbed 0.5 per cent, while jobless claims fell by 3,000 to 294,000 in the week ended December 6, 2014.
The OPEC cut the demand forecast for its crude in 2015 while Kuwait joined Saudi Arabia and Iraq to slash prices of its crude for its Asian buyers to the least since December 2008 and Saudi Arabia questioned the need for a production cut as OPEC members bid to preserve market share amid rising US output, curbing gains in the fuel.
The OPEC sees global demand for its crude falling by about 300,000 barrels per day to 28.9 million barrels per day in 2015, the least since 2003.
Crude oil futures may fall today amid speculation that the OPEC is moving to retain market share, taking the fight to US shale producers.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,816 per barrel, up by 0.10 per cent, after opening at Rs 3,806, against a previous close of Rs 3,814. It touched an intra-day high of Rs 3,858.
12/12/2014 09:11
Crude oil futures posted modest gains in the domestic market on Thursday as investors and speculators booked fresh positions in the energy commodity as better than expected US retail sales data and a dip in unemployment claims last week signaled underlying strength in the world’s biggest economy.
US retail sales climbed 0.7 per cent in November over the previous month when they climbed 0.5 per cent, while jobless claims fell by 3,000 to 294,000 in the week ended December 6, 2014.
The OPEC cut the demand forecast for its crude in 2015 while Kuwait joined Saudi Arabia and Iraq to slash prices of its crude for its Asian buyers to the least since December 2008 and Saudi Arabia questioned the need for a production cut as OPEC members bid to preserve market share amid rising US output, curbing gains in the fuel.
The OPEC sees global demand for its crude falling by about 300,000 barrels per day to 28.9 million barrels per day in 2015, the least since 2003.
Crude oil futures may fall today amid speculation that the OPEC is moving to retain market share, taking the fight to US shale producers.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,816 per barrel, up by 0.10 per cent, after opening at Rs 3,806, against a previous close of Rs 3,814. It touched an intra-day high of Rs 3,858.
