commodity updates - Crude oil futures surged by 2 per cent in the domestic market on Friday as investors and speculators booked fresh positions in the energy commodity tracking Profit in the overseas market as an eleventh drop in the last 12 weeks, in US oil rig count signaled lower production ahead in the country, stemming fears over a global supply glut.
Industry research firm Baker Hughes said that the number of rigs drilling for oil fell by 10 to 564 last week, the biggest weekly drop since late October.
Saudi Arabia, the biggest OPEC oil producer & exporter, said that the cartel, which makes up about 40 per% of crude supplies, and other crude producers are making efforts to stabilize the oil market.
Saudi Oil Minister Ali al-Naimi stressed that the kingdom is working with oil producers to stabilize the market, while a UAE energy official saw prices improving next year.
A rebound in US manufacturing also bolstered the demand for the fuel in the world’s biggest economy, as a regional factory gauge bounced back into positive territory in November. The gauge measuring Kansas manufacturing activity climbed to 1 this month from -1 in October, with a reading above 0 signaling expansion.
Oil may resume a drop today as Venezuela warned that if OPEC doesn’t change its policy, oil prices could drop to as low as “mid-20” in 2016.
At the MCX, Crude oil futures, for the December 2015 contract, closed at Rs 2,833 per barrel, up by 2.05 per cent, after opening at Rs 2,788, against the previous close price of Rs 2,776. It touched an intraday high of Rs 2,847.
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