Crude oil low as U.S. crude supplies drop in market

On Thursday Crude oil futures closed down in the domestic market after data showed an unexpected weekly drop in U.S. crude supplies & optimism surrounding the Organization of the Petroleum Exporting countries’ plan to limit output lifted prices in New York to their top level since mid-July of last year.

Numerous market spectators aren’t enthused by the deal, saying the group’s longstanding internal tensions will make it difficult for all members to be on board. Even if a deal is struck, it remains a question if the members would follow to the production quotas.

At the MCX, crude oil futures for October 2016 contract closed at Rs 3395 per barrel, downward by 2.22 %, after opening at Rs 3463, against a last close of Rs 3472. It touched the intra-day low of Rs 3385.

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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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Commodity news: Crude oil boost expectations of traders 23 Dec, 2015

The sharp drop in prices over present year may increase profitability for these companies, which use crude oil derivatives as raw material or fuel, accounting for 20-40 % of their producing costs.

Crude oil prices have declined more than 40 per-cent so far in the year 2015 and near 15 per-cent in previous one month alone, possibly lending credence to consensus estimations of an earnings growth recovery, said by experts.

The drop in prices of oil has been positive for the consumer sector since crude derivatives are important inputs.

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Mcx crude oil updates for 16 Dec, 2015

Traders betting that US(United States) crude prices will bounce above those in the rest of the world if Congress lifts America's oil-export ban may be discouraged.

Negotiators are inching near to a deal that would allow unfettered access to the country's crude for the 1st time in 40 years.

The glut in the US(United States) that depressed prices at the time of height of the shale frenzy spread to the rest of the world current year.

That caused world prices to sink, narrowing the discount for US crude & lowering the chances for producers to sell their oil at a better price in the export market.

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Crude Oil Rebounds Ahead of OPEC Meet On Yesterdays Trade

 

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.

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Gloom continues for Oil on Oversupply Fears

Commodity Updates - Crude oil futures plunged nearly 1 per cent in the domestic market on Monday as investors and speculators exited positions in the energy commodity amid speculation that the OPEC, that makes up for about 40 per cent of global crude supplies may refrain from cutting output when it meets this Friday in Vienna as the group continues its policy to defend market share despite tumbling prices, threatening to exacerbate a supply glut.
 

Some OPEC officials have said that the cartel won’t change its no-cut policy unless non-OPEC members such as Russia also become party to the plan and cut production.

With US supplies at levels unseen for this time of the year for the past eight decades, and the OPEC likely to stick to its current policy, the global crude oil market may remain flooded with oil over the next few months.
 

Meanwhile, contracts to purchase previously owned homes in the US barely increased last month while a gauge of US business activity fell into contraction in November, signaling a cooling recovery in the world’s biggest economy, clouding the demand outlook for the fuel.
 

US pending home sales index climbed by 0.2 per cent in October from September, when it fell 1.6 per cent. The Chicago PMI, a business barometer, fell to 48.7 this month from 56.2 in October, with a reading below 50 signaling contraction.
 

Oil may extend losses today as a worsening China factory contraction darkens demand outlook.
 

At the MCX, Crude oil futures, for the December 2015 contract, closed at Rs 2,798 per barrel, down by 0.82 per cent, after opening at 2,815, against the previous close price of Rs 2,821. It touched an intraday low of Rs 2,788.

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Oil soars 2% On Easing Supply Glut fears

 

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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Oil Bulls Roar on US Drilling Slowdown

Crude oil futures spiked more than 1 % cent in the domestic market on Friday as investors and speculators booked fresh positions in the energy commodity tracking a trend in the overseas market amid signs that US drillers are curbing production due to an oil price slump, easing concerns over a global supply glut.

Baker Hughes said that the number of rigs drilling for oil in the US fell by 16 to the lowest level since June 2010 to 578 last week, marking the ninth straight drop.

A rise in US consumer sentiment and household spending signaled bright consumer demand prospects from the world’s biggest economy, boding well for oil.

The gauge measuring US consumer sentiment climbed to 90 in October from 87.2 in September while consumer spending climbed 0.1 per cent in October from September when it rose 0.4 per cent.

Further, a gauge measuring manufacturing activity in the US Midwest surged in October as the Chicago PMI shot up to the highest level since January at 56.2 from 48.7 in September, with a reading above 50 signaling expansion.

Oil may fall today as a continued factory slump in China, the world’s second biggest oil consumer, clouds the demand outlook for the fuel.

At the MCX, Crude oil futures, for the November 2015 contract, closed at Rs 3,068 per barrel, up by 1.32 per cent, after opening at Rs 3,013, against the previous close price of Rs 3,028. It touched an intraday high of Rs 3,076.

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Crude Oil futures Spiked By More Than 2 % in the Domestic Market

Crude oil futures spiked by more than 2 per cent in the domestic market on Friday as investors and speculators booked fresh positions in the energy commodity tracking a positive trend in the overseas market as a seventh straight drop in US weekly rig count signaled lower production ahead in the world’s biggest oil consuming nation, easing concerns over a global supply glut.
 

The number of rigs drilling for oil in the US fell by 10 to 595 last week, Baker Hughes said.
 

Investors shrugged off mixed US economic data which showed a second straight drop in factory output in September but consumer sentiment improved this month, signaling uncertainty over the demand outlook for the fuel in the world’s biggest economy.
 

US manufacturing production fell 0.1 per cent in September 2015 from the previous month, while industrial output declined 0.2 per cent. However, the gauge measuring US consumer sentiment climbed to 92.1 in October, the first increase in four months, from 87.2 in September.
 

Oil may fall today as the slowest expansion in China’s GDP growth since Q1 2009 in Q3 2015 signals diminished demand prospects from the world’s second biggest oil consuming nation.
 

At the MCX, Crude oil futures, for the October 2015 contract, closed at Rs 3,055 per barrel, up by 2.31 per cent, after opening at Rs 3,008, against the previous close price of Rs 2,986. It touched an intraday high of Rs 3,075.

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Crude Oil Futures Surged By Over 3.5 % in the Domestic Market

Crude oil futures surged by over 3.5 per cent in the domestic market on Tuesday as investors and speculators booked fresh positions in the energy commodity amidst speculation that OPEC producers are likely to make steep cuts in investments that will ease production and stem a global supply surplus.

An OPEC official predicted a rebound in oil prices amid steep cuts in oil investments by OPEC countries that may trim supplies. The OPEC expects global oil and gas investments to be slashed by 22.4 per cent in 2015.

The EIA said that US crude oil output was 120,000 barrels per day lower in September than in August, predicting production to continue declining through next August. Speculation of a possible cooperation between OPEC and Non OPEC producers also bolstered prices.

A rise in US consumer confidence signaled a pickup in the world’s biggest economy, lifting the demand outlook for the fuel. The IBD/TIPP Economic Optimism Index climbed to 47.3 in October from 42 in September.

Investors shrugged off a reduction in global growth forecasts in 2015 and 2016 by the IMF to 3.1 per cent and 3.6 per cent, respectively, from an earlier predicted 3.3 per cent and 3.8 per cent.

Oil may extend gains today after an industry report showed a 1.2 million barrels drop in US crude oil inventories last week, easing concerns over a global supply glut.

At the MCX, Crude oil futures, for the October 2015 contract, closed at Rs 3,137 per barrel, up by 3.53 per cent, after opening at Rs 3,032, against the previous close price of Rs 3,030. It touched an intraday high of Rs 3,179. 

 

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Oil Prices Edge Up After Losses

Oil prices edged up on Thursday after taking a hit in the previous session in response to a mixed US stockpiles report, but analysts warned that headwinds remained in place for the under-pressure commodity.

Concerns about a slowdown in the global economy, particularly key energy consumer China, combined with an oversupply have seen crude prices tumble more than 60 percent from last year's peaks above USD 100 a barrel.

Prices took another hit yesterday when the US Department of Energy (DoE) said output at home rose 19,000 barrels per day to 9.136 million, snapping a six-week run of lower production.

The news came hours after it was announced that a gauge of factory activity in China had hit a six-and-a-half-year low in September - overshadowing figures showing US commercial crude inventories sank 1.9 million barrels in the week ending September 18. Both main contracts edged up in electronic trade today.

US benchmark West Texas Intermediate was 0.90 percent higher at USD 44.88 a barrel, while Brent crude added 0.67 percent to USD 48.07.

However, David Lennox, an analyst at Fat Prophets in Sydney, told Bloomberg News: "All the factors that sent oil lower are still there. "Oil seems to be holding in a range but the market really needs to see sustainable cuts to production." 

 

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Crude Oil Prices Retreated During Late Morning Trade

Crude oil prices retreated during late morning trade in the domestic market on Friday as investors and speculators cut risky bets in the energy commodity after the US Federal Reserve’s decision to hold borrowing costs unchanged near zero, signaled doubts over the health of the world’s biggest economy amidst a worsening global outlook, clouding the demand prospects for the fuel.

The FOMC stressed that the ongoing turmoil in global markets and uncertainty surrounding China may restrain growth in the US economy and suppress already weak inflation.

While it raised its 2015 economic growth forecast for the US from 1.9 per cent to 2.1 per cent, the Fed cut its estimate for 2016 to 2.3 per cent from 2.5 per cent while that for 2017 was slashed to 2.2 per cent from 2.3 per cent in June.

At the MCX, Crude oil futures, for the September 2015 contract, is trading at Rs 3,072 per barrel, down by 0.81 per cent, after opening at Rs 3,084, against the previous close price of Rs 3,097. It touched an intraday low of Rs 3,066. 

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