Fresh tumble for Oil on oversupply fears 24/02/2015

Fresh tumble for Oil on oversupply fears
24/02/2015 09:27
Crude oil futures plunged in the domestic market on Monday as investors and speculators exited positions in the energy commodity after Libya, the holder of Africa’s biggest oil reserves, resumed a crude pipeline after a fire while Oman said that it intends to up production by as much as possible, widening a global supply glut. Oil fields in eastern Libya restarted crude supply to Hariga port after a pipeline was repaired while Oman, the biggest Middle East producer outside of the OPEC said that it plans to boost production to 980,000 barrels per day in 2015. Meanwhile, an OPEC official in an interview to a media news channel, ruled out the prospect of an OPEC emergency meeting to discuss production. Sales of US existing homes in the US slumped to the lowest level in nine months in January while manufacturing in the Texas region shrank this month, signaling a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. US existing home sales fell by 4.9 per cent to an annualized rate of 4.82 million in January 2015. The gauge measuring Dallas manufacturing activity fell to -11.2 in February from -4.4 in January, with a reading below zero signaling contraction. Oil may extend a decline today as sentiment remains bearish amid worries over a widening supply glut. At the MCX, Crude oil futures, for the March 2015 contract, closed at Rs 3,096 per barrel, down by 3.7 per cent, after opening at Rs 3,196, against the previous close price of Rs 3,215. It touched an intraday low of Rs 3,055 till the closing.

Bearish supplies data drags down Crude 20/02/2015

Bearish supplies data drags down Crude
20/02/2015 08:06
Crude oil futures plunged in the domestic market on Thursday as investors and speculators exited positions in the energy commodity after US supplies rose for a sixth straight week to a record last week, exasperating fears of a global supply glut.
US crude oil stockpiles rose by 7.7 million barrels to a record 425.6 million barrels in the week ended February 13, 2015, the US Energy Information Administration (EIA) said, double analysts’ expectations of a 3.2 million barrels rise.
Crude stockpiles at Cushing, Oklahoma, the biggest US oil storage hub climbed by 3.66 million barrels to 46.26 million barrels last week.
Manufacturing activity in the Philadelphia region expanded at the weakest pace in a year this month while a gain in US leading index decelerated in January, signaling a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel.
The gauge measuring Philadelphia manufacturing activity fell to 5.2 in February from 6.3 in the previous month, with a reading above 0 signaling expansion. The gauge measuring US economic outlook rose 0.2 last month, following a 0.4 per cent rise in December.
Investors cast aside data which showed a drop in the number of applications seeking jobless benefits last week, signaling an improving labour market recovery in the US. Unemployment claims fell by 21,000 to 283,000 in the week ended February 14, 2015.
Crude oil futures may extend losses today as ballooning US supplies aggravate a global surplus.
At the MCX, Crude oil futures, for the March 2015 contract, closed at Rs 3,246 per barrel, down by 2 per cent, after opening at Rs 3,300, against the previous close price of Rs 3,313. It touched an intraday low of Rs 3,128 till the closing.

US strike lifts Oil 03/02/2015

US strike lifts Oil
03/02/2015 09:28
Crude oil futures surged in the domestic and overseas market on Monday as investors and speculators booked fresh positions in the energy commodity as the biggest strike by US workers since 1980s threatened to tighten fuel supplies in the world’s biggest energy consumer.
A strike by the United Steelworkers Union (USW) at US refineries that make up for 10 per cent of the country’s capacity continued for a second day at nine states and has led to the shutdown of one plant while management has assumed control of operations at six other plants.
The USW which represents workers at over 200 refineries, terminals, pipelines and chemical plants called a strike on nine facilities Sunday after failing to renew a labour contract.
A falling rig count signaled lower US production that may ease a supply surplus.
Investors cast aside tepid US data which showed the slowest expansion in US manufacturing in a year last month and the biggest drop in consumer spending in five years in December, clouding the demand outlook for the fuel in the world’s biggest economy which seems to have lost momentum.
The ISM US Manufacturing index fell to 53.5 in January from 55.1 in December, with a reading above 50 signaling expansion.
US consumer spending fell by the most since September 2009, down 0.3 per cent in December from November when it rose a revised 0.5 per cent.
Oil may rise today amid fears that a prolonged US strike may tighten supplies.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 3,053 per barrel, up by 7 per cent, after opening at Rs 2,870, against the previous close price of Rs 2,855. It touched an intraday high of Rs 3,100 till the closing.

Bearish supplies data exasperates oil’s pain 29/01/2015

Bearish supplies data exasperates oil’s pain
29/01/2015 09:23
Crude oil futures plunged in the domestic and overseas market on Wednesday as investors and speculators exited positions in the energy commodity after US crude oil stockpiles increased the most in more than three decades last week, signaling weakening demand for the fuel in the world’s biggest oil consumer. US crude stockpiles rose 8.87 million barrels to 406.7 million barrels last week, the EIA said. Crude supplies at Cushing, Oklahoma, the largest US oil storage hub, increased for an eighth week on the trot to 38.9 million barrels in the week ended January 23, 2015, the highest level since January 2004. US oil output surged by 27,000 barrels per day to 9.2 million barrels per day last week, the highest since at least 1983. Crude may extend a sell-off today as record high production and surging supplies in the US boost a global supply glut. At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 2,772 per barrel, down by 2.46 per cent, after opening at Rs 2,830, against the previous close price of Rs 2,842. It touched an intraday low of Rs 2,762 till the closing.

US stockpiles’ boost drags down Oil 23/01/2015

US stockpiles’ boost drags down Oil
23/01/2015 09:29
Crude oil futures tumbled in the domestic market on Thursday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market as crude oil stockpiles in the US rose at the fastest pace since March 2001, signaling weaker fuel demand in the world’s biggest oil consumer.
US oil supplies climbed 10.1 million barrels to the highest level since May to 397.9 million barrels last week, the EIA said. Refineries in the US operated at 85.5 per cent of their capacity, the lowest level since April 2013 last week.
The number of Americans who filed for unemployment benefit claims rose last week, signaling a faltering labour market recovery in the world’s biggest economy, dimming the demand outlook for the fuel. US jobless claims climbed 10,000 to 307,000 in the week ended January 17, 2015.
Oil may rebound today as the death of King Abdullah of Saudi Arabia, the biggest oil producer in the OPEC raised uncertainty over OPEC policy.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 2,891 per barrel, down by 1.93 per cent, after opening at Rs 2,947, against the previous close price of Rs 2,948. It touched an intraday low of Rs 2,851 till the closing.

Upbeat US data, drilling slowdown lifts Oil 22/01/2015

Upbeat US data, drilling slowdown lifts Oil
22/01/2015 09:20
Crude oil futures closed higher in the domestic and overseas market on Wednesday as investors and speculators booked fresh positions in the energy commodity after builders in the US broke ground on more homes last month, signaling a pickup in the housing market of the world’s biggest economy, lifting the demand outlook for the fuel.
US housing starts climbed by 4.4 per cent to an annual pace of 1.09 million in December 2014 over the previous month.
Speculation that prices near the lowest level in five and a half years may slow drilling in the US supported sentiment. BHP Billiton, the biggest overseas investor in US shale, said that it will slash the number of active drilling rigs in the country by almost 40 per cent.
The IEA said that the plunge in oil prices may discourage investment in all types of energy needed to meet future demand.
According to Bloomberg, OPEC’s Secretary-General Abdalla El-Badri saw crude remaining at USD 40-USD 50 per barrel rather than dropping to as low as USD 20-USD 25 per barrel.
A rise in US crude stockpiles signaled weaker demand for the fuel in the world’s biggest oil consumer, curbing gains in oil futures. US crude oil inventories climbed by 5.7 million barrels last week, the American Petroleum Institute (API) said.
Oil may fall today after Iraq stressed that it may need to step up production and exports to make up for lower prices, signaling a global supply glut.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 2,948 per barrel, up by 0.24 per cent, after opening at Rs 2,924, against the previous close price of Rs 2,941. It touched an intraday high of Rs 2,989 till the closing.

Weak demand outlook worsens oil sell-off 21/01/2015

Weak demand outlook worsens oil sell-off
21/01/2015 09:18
Crude oil futures tumbled in the domestic and overseas market on Tuesday as investors and speculators exited positions in the energy commodity as Iraqi oil output reached record highs while the OPEC’s second biggest oil producer said that it will bolster exports, threatening to boost a global supply glut. The IMF made its steepest downward revision to its global economic growth forecast for 2015 which was cut to 3.5 per cent from an earlier estimate of 3.8 per cent as weakness in Japan, China and Euro area overshadow an improving US economic outlook. Global economic growth may stand at 3.7 per cent in 2016, down from 4 per cent predicted earlier. China’s economy grew at the weakest pace in 24 years in 2014 as a lingering property market slump curbed demand. Asia’s biggest economy grew by 7.4 per cent last year, as China missed the official growth target of 7.5 per cent while Q4 GDP growth stood at 7.3 per cent, year on year. Confidence among American homebuilders fell in January, signaling a weakening housing recovery in the world’s biggest economy, dimming the demand outlook for the fuel. The gauge measuring US homebuilder sentiment fell to 57 this month from 58 in December. Oil may extend a sell-off today ahead of data which may show a rise in US crude stockpiles last week. At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 2,941 per barrel, down by 1.41 per cent, after opening at Rs 2,988, against the previous close price of Rs 2,983. It touched an intraday low of Rs 2,911 till the closing.

Oversupply risks weigh on Oil 20/01/2015

Oversupply risks weigh on Oil
20/01/2015 09:28
Crude oil futures plunged in the domestic market on Monday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market as Iraq’s production rose to record highs, threatening to boost a supply glut.
Iraqi Oil Minister said that the second biggest crude producer in the OPEC is pumping oil at a record pace of 4 million barrels per day. Further, Iran’s Oil Minister said that the country may withstand a deeper fall in prices even as low as USD 25 per barrel.
The US, the world’s biggest crude consumer, signaled that it won’t intervene in the global oil market to arrest a decline, allowing market forces to decide prices, the State Department’s energy envoy said. The US has made its intention clear that it will not cut production despite falling oil prices, against expectations by some OPEC members of high-cost US shale producers being the first to cut output as the crude crash threatens to squeeze margins.
Sentiment also weakened after a top US Federal Reserve official signaled headwinds to the world’s biggest economy amid global weakness, dimming the demand outlook for the fuel. Federal Reserve Bank of San Francisco President John Williams warned that global risks including a Japan recession, Europe stagnation and China slowdown threatened to cut growth in US economy which is seen expanding by 2.5-3 per cent this year.
Oil may extend a downward slide amid fears of a widening surplus.
At the MCX, Crude oil futures, for the February 2015 contract, closed at Rs 2,983 per barrel, down by 1.26 per cent, after opening at Rs 3,037, against the previous close price of Rs 3,021. It touched an intraday low of Rs 2,973 till the closing

Bargain buying lifts Oil 15/01/2015

Bargain buying lifts Oil
15/01/2015 09:24
Crude oil futures closed higher in the domestic market on Wednesday tracking a sharp rebound in the energy commodity in the overseas market as the recent slump offered investors and speculators a good bargain buying opportunity in the fuel, at existing levels.
However, the outlook for the fuel remained weak with Kuwait predicting that the global supply glut will persist at least until the second half of this year.
US crude oil stockpiles rose last week, signaling weak demand for the fuel in the world’s biggest crude consumer. US crude oil inventories spiked 5.4 million barrels to 387.8 million barrels last week, the EIA said.
US oil output surged by 60,000 barrels per day to 9.19 million barrels per day last week, the most since EIA records going back to 1983. Record production is boosting US stockpiles, threatening to deepen a supply glut.
US retail sales fell the most in nearly a year last month, raising concerns over a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. Retail sales in the US declined by 0.9 per cent in December from the previous month, when they climbed 0.4 per cent.
Oil may fall today as cooling US economic recovery threatens to curb demand for the fuel.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 2,863 per barrel, up by 1.3 per cent, after opening at Rs 2,811, against the previous close price of Rs 2,826. It touched an intraday high of Rs 2907 till the closing.

Widening global supply glut drags down Oil 14/01/2015

Widening global supply glut drags down Oil
14/01/2015 09:35
Crude oil futures extended a slide in the domestic and overseas market on Tuesday as investors and speculators exited positions in the energy commodity after a report said that US crude oil stockpiles rose last week, signaling weak demand for the fuel in the world’s biggest oil consumer. US crude supplies climbed 3.9 million barrels last week, API said.
The UAE said that it intends to stick to its plan of beefing up production capacity to 3.5 million barrels per day in 2017 from the current 3 million barrels per day as the country stressed that the OPEC can withstand a drop in oil prices.
The World Bank cut its growth forecast for the global economy in 2015 to 3 per cent from 3.4 per cent estimated earlier amid a slowdown in Europe and China, dimming the demand outlook for the fuel.
China’s economic growth forecast for 2015 was slashed to 7.1 per cent from 7.2 per cent earlier, bur that of US was raised to 3.2 per cent from 3 per cent.
Investors cast aside robust US data which showed a rise in job openings to the highest level in almost 14 years in November while small business confidence hit an eight-year high last month. The number of positions waiting to be filled surged by 142,000 to 4.97 million in November, the highest since January 2001, signaling a pickup in the labour market recovery of the world’s biggest economy.
The gauge measuring US small business confidence rose by 2.3 points to 100.4 in December, the highest since October 2006. The index measuring US consumer confidence rose to 51.5 in January from 48.4 in the previous month; IBD/TIPP said.
Oil may extend a sell-off today after Kuwait predicted that the global supply glut will persist at least in H2 2015.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 2,826 per barrel, down by 2.2 per cent, after opening at Rs 2,866, against the previous close price of Rs 2,890. It touched an intraday low of Rs 2,757 till the closing

Oil rout deepens on Goldman forecasts 13/01/2015

Oil rout deepens on Goldman forecasts
13/01/2015 09:48
Oil tumbled to the lowest level in more than five and a half years on Monday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas markets after Goldman Sachs cut its price forecasts. Crude has to “stay lower for longer” if shale investments are to be reduced to re-balance the global oil market, Goldman Sachs said.
Goldman sees WTI and Brent trading at USD 41 a barrel and USD 42 per barrel in three months amid excess US storage capacity.
The UAE said that it will continue with its plans to boost production capacity to 3.5 million barrels per day in 2017 from the current 3 million barrels per day, widening a supply glut.
A surprise drop in US wages for the first time in at least 8 years last month dimmed US labour market optimism, dampening the demand outlook for the fuel in the world’s biggest economy. Average hourly earnings in the US fell 0.2 per cent in December.
Oil may fall today amid speculation that a probable rise in US crude stockpiles last week may aggravate a supply glut.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,037 per barrel, down by 2.72 per cent, after opening at Rs 3,108, against the previous close price of Rs 3,122. It touched an intraday low of Rs 3,011 till the closing.

Deepening supply glut hits Oil 09/01/2015

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

Oil bears deepen on US supplies data 07/01/2015

Oil bears deepen on US supplies data
07/01/2015 09:33
Crude oil futures plunged deeper into the bear terrain in the domestic and overseas market on Tuesday as investors and speculators exited the energy commodity as a rise in US crude oil stockpiles last week signaled weakening demand for the fuel in the world’s biggest oil consumer.
Oil supplies at Cushing, the biggest US oil storage hub rose by 482,000 barrels last week, the API said. However, overall US stockpiles fell 4 million barrels last week.
Morgan Stanley saw higher production from fields in West Africa, Latin America, the US and Canada in addition to higher supplies from Russia and Iraq while Iran was set to boost exports to about 500,000 barrels per day if international sanctions are lifted, threatening to aggravate a global supply glut.
Services activity in the US cooled in December while factory orders declined in November, signaling a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. The ISM’s services gauge fell to a six-month low of 56.2 last month from 59.3 in November, with a reading above 50 signaling expansion.
US factory orders fell for a fourth straight month, down 0.7 per cent in November, indicating a manufacturing slowdown.
Oil may continue the downward slide today ahead of data which may show a rise in US crude stockpiles last week.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,069 per barrel, down by 4.54 per cent, after opening at Rs 3,197, against the previous close price of Rs 3,215. It touched an intraday low of Rs 3,047 till the closing.

Upbeat US supplies data lifts Oil 02/01/201

Upbeat US supplies data lifts Oil
02/01/2015 09:03
Crude oil futures ended higher in the domestic market on Thursday as investors and speculators booked fresh positions in the energy commodity after US supplies fell last week, signaling a pickup in fuel demand in the world’s biggest oil consumer. US crude stockpiles fell by 1.75 million barrels to 385.5 million barrels in the week ended December 26, 2014, the US Energy Information Administration (EIA) reported. Further, the fewest Americans in 2014 filed for unemployment benefit claims in 14 years in 2014, signaling a strengthening job market recovery in the world’s biggest economy, lifting the demand outlook for the fuel. Average jobless claims in 2014 stood at 308,500, the least since 299,600 in 2000. However, claims moved up by 17,000 to 298,000 in the week ended December 27, 2014, attributed mainly to year-end holiday swings. US pending home sales rose 0.8 per cent in November 2014 from the prior month, when they declined 1.2 per cent, signaling an improving US housing market recovery, bolstering sentiment. Oil may rise today as a fire in 8 of the 12 crude-storage tanks at an Enbridge facility in North Dakota fueled supply concerns. At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,400 per barrel, up by 0.92 per cent, after opening at Rs 3,398, against the previous close price of Rs 3,369. It touched an intraday high of Rs 3,410 till the closing.

Supply glut fears deepen Oil’s pain 30/12/2014

Supply glut fears deepen Oil’s pain
30/12/2014 09:36
Crude oil futures slumped in the domestic and overseas market on Monday, falling deeper into bear market as investors and speculators exited positions in the energy commodity amid fears that a global supply glut may continue to persist through the first half of 2015 with US production near three-decade highs and OPEC resisting output cuts.
Further, Libya, the holder of Africa’s biggest oil reserves extinguished fire at three of the country’s six oil storage tanks at the country’s largest oil port, easing concerns over dwindling supplies from the African nation.
A stronger dollar, which hit a two-year high against the euro, also curbed the demand for the fuel as an alternative asset. Stronger greenback makes crude more expensive for those holding other currencies, thus dimming demand.
Manufacturing activity in the Texas region grew at a weaker than expected pace in December, signaling a slowdown in the world’s biggest economy this quarter, clouding the demand outlook for the fuel. The Federal Reserve Bank of Dallas on Monday reported that its general business activity index, a gauge of manufacturing declined to 4.1 in December from 10.5 in November, with a reading above zero signaling expansion.
Crude futures may fall today amid speculation that US oil stockpiles may have remained at high levels last week, signaling weak demand for the fuel in the world’s biggest oil consumer.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,414 per barrel, down by 3.75 per cent, after opening at Rs 3,555, against the previous close price of Rs 3,547. It touched an intraday low of Rs 3,396 till the closing.

Oil rebounds on Libya supply concerns 29/12/2014

Oil rebounds on Libya supply concerns
29/12/2014 11:13
Crude oil futures rose in the domestic market on Monday as investors and speculators booked fresh positions in the energy commodity tracking a firm trend in the overseas market amid rising concerns that a worsening conflict in Libya, the holder of Africa’s largest oil reserves may lead to supply disruptions, easing a global supply glut which has driven crude into bear terrain.
A Libyan government official said that Libya’s largest oil port which is capable of holding four times the country’s daily production is at risk of catching fire.
Meanwhile, Algerian Energy Minister called on the OPEC to cut output to boost prices.
At the MCX, Crude oil futures, for the January 2015 contract, is trading at Rs 3,554 per barrel, up by 0.20 per cent, after opening at Rs 3,555, against the previous close price of Rs 3,547. It touched an intraday high of Rs 3,557 till the closing. (At 10:48 PM).

Oil posts slim losses on supply glut fears 29/12/2014

Oil posts slim losses on supply glut fears
29/12/2014 09:45
Crude oil futures succumbed to a mild sell-off on Friday on fears over a widening supply glut in the US, the world’s biggest crude oil consumer, where output is at the highest level in nearly three decades.
A stronger dollar also curbed demand for the energy commodity as an alternative asset. Stronger greenback makes crude more expensive for those holding other currencies, thus dimming demand.
However, the losses in the fuel were capped by falling output from Libya; the largest holder of oil reserves in Africa, amid infighting after several tanks caught fire at the country’s largest petroleum port amid an attack by Islamist militants.
Further, speculation that Saudi Arabia, OPEC’s largest crude exporter is seen as signaling confidence in the oil market also supported oil. Saudi Arabia sees crude rebounding to USD 80 per barrel next year as demand rises amid a gradual recovery in the world economy.
Meanwhile, Iraq’s Oil Minister Adel Abdul Mahdi said that crude prices are “fair” at about USD 70 -80 a barrel.
Oil may rebound today as the Libyan conflict raises supply fears.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,547 per barrel, down by 0.08 per cent, after opening at Rs 3,590, against the previous close price of Rs 3,550. It touched an intraday low of Rs 3,537 till the closing.

Bearish US supplies data hits Oil 26/12/2014

Bearish US supplies data hits Oil
26/12/2014 09:46
Crude oil futures slumped in the domestic market on Wednesday as investors and speculators exited positions in the energy commodity as US crude oil stockpiles rose at the fastest pace in two months, signaling weakening demand for the fuel in the world’s biggest oil consumer.
US crude oil stockpiles surged 7.27 million barrels to 387.2 million barrels in the week ended December 19, 2014, the EIA said. Analysts were expecting US supplies to rise 2.5 million barrels last week. Cushing supplies surged 973,000 barrels to 28.8 million barrels last week.
American refineries operated at 93.5 per cent of their capacity last week, unchanged from the previous week, signaling sluggish demand for the fuel in the world’s biggest oil consumer.
Investors shrugged off robust US jobless claims data which showed a drop in applications for claiming unemployment benefits to a seven-week low last week, signaling an improving labour market recovery in the world’s biggest economy. US jobless claims fell by 9,000 to the lowest level since early November at 280,000 in the week ended December 20, 2014.
Crude oil futures may rebound today amid speculation that Saudi Arabia, OPEC’s largest crude exporter is seen as signaling confidence in the oil market.
At the MCX, Crude oil futures, for the January 2015 contract, closed at Rs 3,550 per barrel, down by 1.63 per cent, after opening at Rs 3,612, against the previous close price of Rs 3,609. It touched an intraday low of Rs 3,525 till the closing.

Oil futures surge on US supply hopes 23/12/2014

Oil futures surge on US supply hopes
23/12/2014 10:45
Crude oil futures rebunded in the domestic and overseas market on Tuesday as investors and speculators booked fresh positions in the energy commodity amid speculation that US crude oil supplies fell for a second straight week, easing fears over a deepening global supply glut.
US crude oil stockpiles likely shrank by 2.5 million barrels last week, EIA data may show tomorrow.
A bigger than expected improvement in a US economic activity index signaled underlying strength in the world’s biggest economy, lifting the demand outlook for the fuel. The Chicago Fed national activity index rose to 0.73 in November from 0.31 in October.
At the MCX, Crude oil futures, for the January 2015 contract, is trading at Rs 3,577 per barrel, up by 1.22 per cent, after opening at Rs 3,559, against the previous close price of Rs 3,534. It touched an intraday high of Rs 3,587 till the closing. (At 10:29 PM).

Fears of widening supply glut take toll on Oil 19/12/2014

Fears of widening supply glut take toll on Oil
19/12/2014 09:19
Crude oil futures tumbled in the domestic market on Thursday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market after Iran pledged to retain market share, joining its OPEC peers who have cut prices to maintain market position amidst surging US output.
Saudi Arabia, OPEC’s biggest crude exporter and producer also said that it will keep its output steady despite the freefall in prices, raising fears over a supply glut.
The OPEC last month left its output target unchanged at 30 million barrels per day while forecasting the weakest demand for its oil in 12 years in 2015.
Investors weighed mixed US economic data which showed a drop in the number of unemployment claims to the lowest level in six weeks, signaling an improving labour market, offset by slower gain in services in December.
Jobless claims fell 6,000 to 289,000 in the week ended December 13. The gauge measuring US services fell to 53.6 in December from 56.2 in the previous month, with a reading above 50 signaling expansion. US leading index rose 0.6 per cent in November 2014 over the previous month, when it climbed at the same pace.
Crude oil futures may rebound today after Saudi Arabia’s Oil Minister said that he is optimistic over global demand in the future.
At the MCX, Crude Oil futures, for the December 2014 contract, closed at Rs 3,531 per barrel, down by 3.8 per cent, after opening at Rs 3,655, against a previous close of Rs 3,672. It touched an intra-day low of Rs 3,483.