Demonetisation shock : Oil demand growth in India will slowdown

Oil demand growth in the world's rapidly-growing crude market may weaken as the government's cash crackdown slows the economy. 

Diesel and gasoline use, which account for more than half of India's oil demand, will slow or contract this month and perhaps early next year, as per reports. Expansion in the world's fastest-growing major economy is universally expected to ease temporarily after Prime Minister Modi last month withdrew high-value currency notes in a country where almost all consumer payments are in cash. 

Diesel consumption could drop as much as 12 % and gasoline demand as much as 7 % his month, according to reports.

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Commodity: Crude oil drop on renewed doubts on OPEC-led production cut

Crude Oil prices fell in Asian trade on Wednesday, altering earlier gains, as doubts re-emerged over whether OPEC would agree to a crude oil production cut at a ministerial meet next week.  

A strong dollar, which traded close by the 13 1/2-year peak hit last week, also weighed on prices among thin trading ahead of the US Thanksgiving holiday on Thursday. 

International Brent crude oil futures dropped 8 cents to $49.04 a barrel at 0548 GMT after climbing to $49.42 a barrel earlier in Wednesday's session on optimism OPEC would agree to an output cut. 

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Commodity Watch: Crude oil dips as OPEC output soars

The Futures of Crude oil closed low in the domestic market on Monday as an increase in the number of rigs actively drilling for oil in the U.S. and soaring crude output from prime producers pushed prices in to low levels.

Ahead this week, the market will eye for the weekly U.S. crude inventories & production data to be released on Wednesday. China will also release its monthly crude production & throughput data on the same day.

At the MCX, crude oil futures for October 2016 contract closed at Rs 3327 per barrel, downward by 0.36 per cent, after opening at Rs 3356, against a last close of Rs 3339. It touched the intra-day lower of Rs 3306.

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Today Crude Oil down on US supply rise

During late morning trade Crude oil futures fell in the domestic market on Thursday as investors & speculators exit positions in the energy commodity after US crude storage levels rose significantly last week, inflaming fears of a global supply glut.

The industry-funded American Petroleum Institute (API) said on Wednesday that US crude oil supplies climbed by 2.7 million barrels in the week ended October 7, 2016. Analysts were expecting crude oil inventories in the US to rise by 250,000 barrels last week. The EIA will release separate US crude inventory data on Thursday.

Doubts are emerging over the OPEC’s plan to slash output by 200,000 to 700,000 barrels a day reached late September as Russia remains non-committal over a production cut.

At the MCX, crude oil futures for October 2016 contract is trading at Rs 3331 per barrel, downward by 0.60 %, after opening at Rs 3331, against a last close of Rs 3386. It touched the intra-day low of Rs 3322. 

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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.
 

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