Easing supply fears weigh on crude oil futures
03/06/2014 09:11
Crude oil futures ended lower in the domestic market on Monday as investors and speculators exited positions in the energy commodity after reports said that Libya will reopen an export terminal, easing worries over a disruption in global crude oil supplies. However, robust US manufacturing and construction data signaled a pickup in the world’s biggest economy, lifting the demand outlook for top industrial commodities, curbing losses in crude oil futures. Manufacturing activity in the US expanded at the fastest pace this year in May as the ISM’s factory gauge rose to 55.4 from 54.9 in April, with a reading above 50 signaling expansion. US construction spending surged to the highest level in five years, up 0.2 per cent in April 2014. Further, manufacturing activity in China expanded at the fastest pace in five months in May 2014 as demand rebounded, a sign that the world’s second biggest economy is picking up pace. Crude oil futures may rise today ahead of data which may show a drop in US crude stockpiles last week. At the MCX, Crude Oil futures, for the June 2014 contract, closed at Rs 6,064 per barrel, down by 0.69 per cent, after opening at Rs 6,115 against a previous close of Rs 6,106. It touched an intra-day low of Rs 6,059.
03/06/2014 09:11
Crude oil futures ended lower in the domestic market on Monday as investors and speculators exited positions in the energy commodity after reports said that Libya will reopen an export terminal, easing worries over a disruption in global crude oil supplies. However, robust US manufacturing and construction data signaled a pickup in the world’s biggest economy, lifting the demand outlook for top industrial commodities, curbing losses in crude oil futures. Manufacturing activity in the US expanded at the fastest pace this year in May as the ISM’s factory gauge rose to 55.4 from 54.9 in April, with a reading above 50 signaling expansion. US construction spending surged to the highest level in five years, up 0.2 per cent in April 2014. Further, manufacturing activity in China expanded at the fastest pace in five months in May 2014 as demand rebounded, a sign that the world’s second biggest economy is picking up pace. Crude oil futures may rise today ahead of data which may show a drop in US crude stockpiles last week. At the MCX, Crude Oil futures, for the June 2014 contract, closed at Rs 6,064 per barrel, down by 0.69 per cent, after opening at Rs 6,115 against a previous close of Rs 6,106. It touched an intra-day low of Rs 6,059.
