Oil
fell back into bear terrain on Tuesday as investors and speculators
resorted to profit booking after a two-day gain of about 15 per cent
when lower US June production and hopes of a possible OPEC move to
support beaten down prices boosted sentiment.Investors were also cautious ahead of the weekly EIA data on US crude supplies which may show a build of 444,000 barrels.
Further, a worsening factory slump in China exacerbated concerns over the health of the world’s second biggest economy as China’s official factory gauge contracted at the fastest pace in three years in August 2015 while a private manufacturing gauge showed the steepest decline in more than six years, darkening the demand outlook for the fuel. The official China manufacturing PMI fell to a three-year low of 49.7 in August from the neutral mark of 50 in July.
Meanwhile, US manufacturing expanded at the slowest rate since May 2013 in August 2015 while consumer sentiment fell to a 23-month low, signaling renewed worries over the health of the world’s biggest economy, dashing the fuel’s demand prospects. The ISM US factory index fell to 51.1 in August from 52.7 in July while the US consumer optimism gauge plunged to 42 in early September from 46.9 in August.Oil may extend a drop today after an industry report showed an injection of 7.6 million barrels in US crude oil storage levels to 456.9 million barrels in the week ended August 28, 2015, threatening to worsen a global supply glut.
At the MCX, Crude oil futures, for the September 2015 contract, closed at Rs 3,058 per barrel, down by 5.33 per cent, after opening at Rs 3,220, against the previous close price of Rs 3,230. It touched an intraday low of Rs 3,032. Read more - Crude News
Further, a worsening factory slump in China exacerbated concerns over the health of the world’s second biggest economy as China’s official factory gauge contracted at the fastest pace in three years in August 2015 while a private manufacturing gauge showed the steepest decline in more than six years, darkening the demand outlook for the fuel. The official China manufacturing PMI fell to a three-year low of 49.7 in August from the neutral mark of 50 in July.
Meanwhile, US manufacturing expanded at the slowest rate since May 2013 in August 2015 while consumer sentiment fell to a 23-month low, signaling renewed worries over the health of the world’s biggest economy, dashing the fuel’s demand prospects. The ISM US factory index fell to 51.1 in August from 52.7 in July while the US consumer optimism gauge plunged to 42 in early September from 46.9 in August.Oil may extend a drop today after an industry report showed an injection of 7.6 million barrels in US crude oil storage levels to 456.9 million barrels in the week ended August 28, 2015, threatening to worsen a global supply glut.
At the MCX, Crude oil futures, for the September 2015 contract, closed at Rs 3,058 per barrel, down by 5.33 per cent, after opening at Rs 3,220, against the previous close price of Rs 3,230. It touched an intraday low of Rs 3,032. Read more - Crude News
