Mcx Crude oil futures soared by over 4 per-cent in the local market on yesterday while topping the USD 40 per barrel mark in the international market for the first time in 2016 after US Fed Reserve pared back the timetable for further interest rate increases & as major oil producers reached an agreement to set a meeting date to discuss an outcome freeze to curb oversupplies.The Fed’s expectations of two interest rate lift of 25 bps each in the year 2016, went down from four earlier helped push lower the USD, lowering the appeal of oil as an alternative asset. Weaker greenback makes oil cheaper for those holding other currencies.Click for Mcx crude tips
A pickup in economic recovery of United States also bolstered oil’s requirement outlook as fewer than expected Americans filed to claim jobless claims which rose 7,000 to 265,000 last week. US job openings increased by 260,000 to 5.54 million in Jan, leading index climbed 0.1 per-cent in Feb from January when it fell 0.2 per-cent. Further, a gauge measuring manufacturing in Philadelphia rose to 12.4 in March from -2.8 in Feb, with a reading above 0 indicating expansion.
Oil may retreat today as the stellar rally in the previous two sessions may lead to profit booking by traders, in the fuel, at existing levels. March 2016 contract for Oil futures, closed at Rs 2,654 per barrel, went up by 4.16 per-cent, after opening at 2,575, against the last price of Rs 2,548. It then touched an intraday high of 2,666.
