Friday, September 9, 2016

Oil gains about 5% on US supply plunge

In the domestic market on Thursday Crude oil futures rallied richly as traders cheered the biggest drop in US supplies since 1999, easing fears above a global supply excess in the energy commodity.

The EIA said that US crude oil stockpiles drop 14.5 million barrels to 511.4 million barrels last week. 

Refineries increased operating rates by 0.9 % points to 93.7 % of ability in the week ended September 2, 2016, the highest since November, signaling a pickup in fuel demand in the US, the world’s largest fuel consuming nation.

At the MCX, Crude oil futures for September 2016 bond closed at Rs. 3,170 per barrel, up by 4.97 %, after opening at Rs. 3,022, against the previous closing price of Rs. 3,020. It touched the intra-day high of Rs. 3,173.