Weak US consumer sentiment data drags down crude oil futures
Crude oil futures ended lower in the domestic market on Friday as investors and speculators exited positions in the energy commodity after a report said that consumer sentiment in the US fell in May, signaling a slowing recovery in the world’s biggest economy, dimming the demand outlook for the fuel. The gauge measuring US consumer sentiment fell to 81.8 in May from 84.1 in April, Thomson Reuters said in a report on Friday. A sharp appreciation in the rupee against the US dollar more than offset the gains in the energy commodity seen in the overseas market. Stronger rupee exerts downward pressure on domestic crude oil prices. However, the losses in the fuel were trimmed by upbeat US housing data which showed that housing starts rose to the highest level in five months in April 2014, signaling a pickup in the US housing recovery, supporting the demand outlook for the fuel. US housing starts rose 13.2 per cent to a 1.07 million annualized rate in April 2014. Crude oil futures may rise today amid concerns that rising violence in Libya may disrupt global crude supplies. At the MCX, Crude Oil futures, for the May 2014 contract closed at Rs 5,984 per barrel, down by 0.88 per cent, after opening at Rs 6,026, against a previous close of Rs 6,037. It touched an intra-day low of Rs 5,956.
Crude oil futures ended lower in the domestic market on Friday as investors and speculators exited positions in the energy commodity after a report said that consumer sentiment in the US fell in May, signaling a slowing recovery in the world’s biggest economy, dimming the demand outlook for the fuel. The gauge measuring US consumer sentiment fell to 81.8 in May from 84.1 in April, Thomson Reuters said in a report on Friday. A sharp appreciation in the rupee against the US dollar more than offset the gains in the energy commodity seen in the overseas market. Stronger rupee exerts downward pressure on domestic crude oil prices. However, the losses in the fuel were trimmed by upbeat US housing data which showed that housing starts rose to the highest level in five months in April 2014, signaling a pickup in the US housing recovery, supporting the demand outlook for the fuel. US housing starts rose 13.2 per cent to a 1.07 million annualized rate in April 2014. Crude oil futures may rise today amid concerns that rising violence in Libya may disrupt global crude supplies. At the MCX, Crude Oil futures, for the May 2014 contract closed at Rs 5,984 per barrel, down by 0.88 per cent, after opening at Rs 6,026, against a previous close of Rs 6,037. It touched an intra-day low of Rs 5,956.
