Free Commodity Tips - Crude oil futures soared by over 3 per cent in the domestic market on Thursday as investors and speculators booked fresh positions in the energy commodity tracking a bullish trend in the overseas market as OPEC countries from Venezuela to Iran put pressure on Saudi Arabia, the cartel’s biggest producer, to cut output at Friday’s policy meet in Vienna, and alleviate a supply glut to support prices.
Energy Intelligence reported that Saudi Arabia could propose an eventual group production cut of 1 million barrels per day, to take effect from 2016.The cartel which makes up about 40 per cent of global crude supplies has aggressively pursued its policy to defend market share by keeping output at nearly record high rates even as prices continue to tumble.
Investors looked past mostly bearish US economic data as jobless claims rose last week and services growth hit a six-month low in November, signaling a slowdown in the world’s biggest economy that may curb demand for the fuel.The number of Americans who filed for claiming unemployment insurance benefits climbed 9,000 to 269,000 in the week ended November 28, while the gauge measuring US services fell the most in seven years, dropping to 55.9 in November from 59.1 in October, with a reading above 50 signaling expansion.
While US new factory orders soared by 1.5 per cent in October, those for core capital goods, a proxy for business investment, fell 0.5 per cent.Oil may retreat today amid caution ahead of the OPEC meet outcome.
At the MCX, Crude oil futures, for the December 2015 contract, closed at Rs 2,791 per barrel, up by 3.4 per cent, after opening at 2,700, against the previous close price of Rs 2,700. It touched an intraday high of Rs 2,805.
