Monday, October 26, 2015

Crude Oil Ends Lower On Sluggish Demand Outlook
Crude oil futures ended lower in the domestic market on Friday in the midst of a miniscule build in US oil rigs last week. Oil services firm Baker Hughes said the US oil rig count for the week ending on Oct. 16 fell by 1 to 594. It marked the eighth straight week of weekly declines, as US production continues to hover near 2015 yearly lows. Energy traders have kept a close eye on the rig count since a shocking move by OPEC last November triggered a downturn in global oil prices. However, losses were limited as signs of a pickup in the 19-member Euro area economy bolstered the demand outlook for the fuel. A combined gauge measuring Euro area manufacturing and services climbed to the highest level in two months at 54 in Oct, with a reading above 50 signaling expansion, Markit Economics said. Meanwhile, the ECB also indicated that it may boost its QE program to accelerate the region’s economic recovery, auguring well for crude oil. Bargain buying also limited the losses as prices hit a near-three week low after the EIA reported an 8 million barrels rise in US oil supplies last week, raising fears over a global supply glut. At the MCX, Crude oil futures, for the Oct 2015 contract, closed at Rs 2,927 per barrel, down by 0.81 per cent, after opening at Rs 2,956, against the previous close price of Rs 2,951. It touched an intraday low of Rs 2,895. 

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