Free MCX Tips: Crude oil futures ended in the red in the domestic market on Thursday as investors and speculators exited positions in the energy commodity tracking a weak trend in the foreign market as a sixth straight weekly rise in US crude oil stockpiles which remain near the highest level in at least eighty years signaled concerns over a worsening global supply glut.
US crude oil supplies climbed by 2.8 million barrels to 482.8 million barrels in the week ended October 30, 2015, the EIA reported this week.
A stronger dollar also curbed the lure for oil as an alternative asset. Stronger dollar makes oil more precious for those holding other currencies, thus cutting demand for the fuel.
The dollar spiked after Fed Chair Janet Yellen signaled that borrowing price may be raised before the year ends if economic data continues to remain robust.
Meanwhile, the number of Americans who filed for unemployment insurance benefits hit a five-week high, up 16,000 to 276,000 in the week October 31, 2015. Despite the spike in claims last week, analysts pointed out that the labour market in the US remains at healthy levels, providing the grounding for an interest rate lift-off next month.
Oil may rebound today as recent sharp losses offer good bargain buying opportunity in the fuel at existing levels.
At the Multi Commodity Exchange, Crude oil futures, for the Nov 2015 agreement, closed at Rs 3,039 per barrel, down by 0.33 per cent, after starting at Rs 3,065, against the previous close price of Rs 3,049. It touched an intraday low of Rs 3,015.
US crude oil supplies climbed by 2.8 million barrels to 482.8 million barrels in the week ended October 30, 2015, the EIA reported this week.
A stronger dollar also curbed the lure for oil as an alternative asset. Stronger dollar makes oil more precious for those holding other currencies, thus cutting demand for the fuel.
The dollar spiked after Fed Chair Janet Yellen signaled that borrowing price may be raised before the year ends if economic data continues to remain robust.
Meanwhile, the number of Americans who filed for unemployment insurance benefits hit a five-week high, up 16,000 to 276,000 in the week October 31, 2015. Despite the spike in claims last week, analysts pointed out that the labour market in the US remains at healthy levels, providing the grounding for an interest rate lift-off next month.
Oil may rebound today as recent sharp losses offer good bargain buying opportunity in the fuel at existing levels.
At the Multi Commodity Exchange, Crude oil futures, for the Nov 2015 agreement, closed at Rs 3,039 per barrel, down by 0.33 per cent, after starting at Rs 3,065, against the previous close price of Rs 3,049. It touched an intraday low of Rs 3,015.
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