Deepening supply glut hits Oil
09/01/2015 09:30
Crude oil futures closed lower in the domestic market on Thursday as investors and speculators exited positions in the energy commodity after the United Arab Emirates said that it has no plans to curb production no matter how low prices fall while Saudi Arabia, the world’s second biggest oil producer also ruled out a production cut.
US crude exports rose at the fastest clip on record, up 34 per cent to 502,000 barrels per day in November, widening a global supply glut.
A stronger dollar also cut the demand for the fuel as an alternative asset. Stronger greenback makes oil more expensive for those holding other currencies, thus dimming demand.
The number of Americans who filed for claiming unemployment benefits fell last week, signaling a pickup in the labour market of the world’s biggest economy, lifting the demand outlook for the fuel, curbing losses in oil futures. US jobless claims fell 4,000 to 294,000 in the week ended January 3, 2015.
Oil may advance today amid speculation that a slowdown in the US shale boom will reduce a supply glut.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,055 per barrel, down by 0.71 per cent, after opening at Rs 3,102, against the previous close price of Rs 3,077. It touched an intraday low of Rs 3,035 till the closing
09/01/2015 09:30
Crude oil futures closed lower in the domestic market on Thursday as investors and speculators exited positions in the energy commodity after the United Arab Emirates said that it has no plans to curb production no matter how low prices fall while Saudi Arabia, the world’s second biggest oil producer also ruled out a production cut.
US crude exports rose at the fastest clip on record, up 34 per cent to 502,000 barrels per day in November, widening a global supply glut.
A stronger dollar also cut the demand for the fuel as an alternative asset. Stronger greenback makes oil more expensive for those holding other currencies, thus dimming demand.
The number of Americans who filed for claiming unemployment benefits fell last week, signaling a pickup in the labour market of the world’s biggest economy, lifting the demand outlook for the fuel, curbing losses in oil futures. US jobless claims fell 4,000 to 294,000 in the week ended January 3, 2015.
Oil may advance today amid speculation that a slowdown in the US shale boom will reduce a supply glut.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,055 per barrel, down by 0.71 per cent, after opening at Rs 3,102, against the previous close price of Rs 3,077. It touched an intraday low of Rs 3,035 till the closing
