Commodity tips : Crude oil futures soared by over 2.5 per cent in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity tracking a firm trend in the overseas market as a surprise drop in US oil storage levels last week eased concerns over a global supply glut.
US crude oil stockpiles fell by 5.9 million barrels, the biggest drop since June to 484.8 million barrels in the week ended December 18, the EIA said, against estimates of a 1.2 million barrels rise by analysts.
The number of rigs drilling for oil in the US fell by 3 to 538 this week, signaling lower production ahead.
Meanwhile, the OPEC predicted a recovery in oil prices to USD 70 per barrel in 2020 and to USD 95 per barrel in 2040 even as it slashed the demand outlook for its exports. The OPEC expects demand for its oil to fall to 30.7 million barrels per day in 2020 from 30.9 million barrels per day in 2016.
Meanwhile, mostly upbeat US economic data signaled an upbeat demand outlook for the fuel in the world’s biggest oil consuming nation.
US consumer spending rose the most in three months, up by 0.3 per cent in November, the gauge measuring consumer confidence rose to the highest level in five months to 92.6 in December from 91.3 in November, sales of new homes climbed 4.3 per cent to a 490,000 annual pace in November but capital goods orders fell 0.4 per cent in November.
Oil may extend an advance today as falling US storage levels ease concerns of oversupplies.
At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,491 per barrel, up by 2.6 per cent, after opening at 2,428, against the previous close price of Rs 2,427. It touched an intraday high of Rs 2,514.
US crude oil stockpiles fell by 5.9 million barrels, the biggest drop since June to 484.8 million barrels in the week ended December 18, the EIA said, against estimates of a 1.2 million barrels rise by analysts.
The number of rigs drilling for oil in the US fell by 3 to 538 this week, signaling lower production ahead.
Meanwhile, the OPEC predicted a recovery in oil prices to USD 70 per barrel in 2020 and to USD 95 per barrel in 2040 even as it slashed the demand outlook for its exports. The OPEC expects demand for its oil to fall to 30.7 million barrels per day in 2020 from 30.9 million barrels per day in 2016.
Meanwhile, mostly upbeat US economic data signaled an upbeat demand outlook for the fuel in the world’s biggest oil consuming nation.
US consumer spending rose the most in three months, up by 0.3 per cent in November, the gauge measuring consumer confidence rose to the highest level in five months to 92.6 in December from 91.3 in November, sales of new homes climbed 4.3 per cent to a 490,000 annual pace in November but capital goods orders fell 0.4 per cent in November.
Oil may extend an advance today as falling US storage levels ease concerns of oversupplies.
At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,491 per barrel, up by 2.6 per cent, after opening at 2,428, against the previous close price of Rs 2,427. It touched an intraday high of Rs 2,514.
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