Ample US supplies, weak factory data drag down crude oil futures
Crude oil futures ended lower in the domestic market on Thursday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market as US crude oil supplies rose to a near record high last week as output surged to the highest level in 28 years. Ample supplies are exerting downward pressure on crude oil prices. An unexpected dip in US industrial output in April signaled a cooling recovery in the world’s biggest economy, clouding the demand outlook for the fuel. US industrial production fell 0.6 per cent in April over the previous month as factory output declined. Investors cast aside robust jobless claims data which showed that the number of Americans who filed for unemployment benefits fell to a seven-year low last week, signaling an improvement in the US labour market. US jobless claims fell by 24,000 to 297,000 last week, the Labour Department said. The IEA raised its forecast for global crude oil demand by 65,000 barrels to 92.8 million barrels per day in 2014, predicting higher than previously expected demand for OPEC’s crude in the second half of the year. Crude oil futures may rise today as the prospects of further sanctions against Russia, the world’s biggest energy exporter raised supply concerns. At the MCX, Crude Oil futures, for the May 2014 contract closed at Rs 6,037 per barrel, down by 0.94 per cent, after opening at Rs 6,085, against a previous close of Rs 6,094. It touched an intra-day low of Rs 6,021.
Crude oil futures ended lower in the domestic market on Thursday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market as US crude oil supplies rose to a near record high last week as output surged to the highest level in 28 years. Ample supplies are exerting downward pressure on crude oil prices. An unexpected dip in US industrial output in April signaled a cooling recovery in the world’s biggest economy, clouding the demand outlook for the fuel. US industrial production fell 0.6 per cent in April over the previous month as factory output declined. Investors cast aside robust jobless claims data which showed that the number of Americans who filed for unemployment benefits fell to a seven-year low last week, signaling an improvement in the US labour market. US jobless claims fell by 24,000 to 297,000 last week, the Labour Department said. The IEA raised its forecast for global crude oil demand by 65,000 barrels to 92.8 million barrels per day in 2014, predicting higher than previously expected demand for OPEC’s crude in the second half of the year. Crude oil futures may rise today as the prospects of further sanctions against Russia, the world’s biggest energy exporter raised supply concerns. At the MCX, Crude Oil futures, for the May 2014 contract closed at Rs 6,037 per barrel, down by 0.94 per cent, after opening at Rs 6,085, against a previous close of Rs 6,094. It touched an intra-day low of Rs 6,021.
