Today, Crude oil futures plunged by 3 per-cent in the native market on Friday as investors & speculators cut risky bets in the energy commodity which sank to the lowest level in 11 weeks in the overseas market as concerns over a world wide supply glut worsened.
OPEC, the cartel which accounts for about 40 per-cent of global crude supplies, said that surplus crude inventories were at the highest level in at least a decade due to record production. A rate increase in US oil rig count for the 1st time in almost 3 months last week signaled an increase in production, going ahead, threatening to exacerbate a supply glut. Baker Hughes told that the number of rigs drilling for oil in the US crept up by 2 to 574 last week.
A smaller than estimated increase in US retail sales in October signaled a slowdown in consumer spending in the world’s largest economy which may curb fuel demand. US retail sales rose a paltry 0.1 per-cent in October from September when they stood little changed. Moreover, a gauge measuring US consumer sentiment surged to a four-month high of 93.1 in November from 90 in October. Oil may expand losses today as a renewed Japan recession curbs fuel requirement. At the MCX, Crude oil futures, Nov 2015 contract ended at Rs 2,689 per barrel, down by 3 per-cent, after opening at Rs 2,759, against the preceding close price of Rs 2,771. It attained an intraday low of Rs 2,677.
Read More : Mcx crude tips
OPEC, the cartel which accounts for about 40 per-cent of global crude supplies, said that surplus crude inventories were at the highest level in at least a decade due to record production. A rate increase in US oil rig count for the 1st time in almost 3 months last week signaled an increase in production, going ahead, threatening to exacerbate a supply glut. Baker Hughes told that the number of rigs drilling for oil in the US crept up by 2 to 574 last week.
A smaller than estimated increase in US retail sales in October signaled a slowdown in consumer spending in the world’s largest economy which may curb fuel demand. US retail sales rose a paltry 0.1 per-cent in October from September when they stood little changed. Moreover, a gauge measuring US consumer sentiment surged to a four-month high of 93.1 in November from 90 in October. Oil may expand losses today as a renewed Japan recession curbs fuel requirement. At the MCX, Crude oil futures, Nov 2015 contract ended at Rs 2,689 per barrel, down by 3 per-cent, after opening at Rs 2,759, against the preceding close price of Rs 2,771. It attained an intraday low of Rs 2,677.
Read More : Mcx crude tips
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