COMMODITY TIPS | Crude oil futures soared by 1 per cent during morning trade in the domestic market on Tuesday as the sharp losses in recent sessions amidst worries over a worsening global supply glut offered a good bargain buying opportunity, to investors, in the fuel, at existing levels.
Fears that the OPEC’s continued aggressive strategy to defend market share, coupled with strong US production and a looming return of Iranian oil to the market may aggravate oversupplies have pegged oil back in recent sessions. The International Energy Agency expects Iran's exports to rise by half a million billion barrels per day within six-twelve months of sanctions being lifted.
Speculation of further monetary and fiscal stimulus by China, the world’s second biggest oil consumer, also powered the rally in the fuel as traders bet that policy easing may help combat a lingering economic slowdown in the country, thus lifting oil demand.
At the MCX, Crude oil futures, for the January 2016 contract, is trading at Rs 2,409 per barrel, up by 1.01 per cent, after opening at 2,398, against the previous close price of Rs 2,385. It touched an intraday high of Rs 2,411. (At 10:16 AM).
Fears that the OPEC’s continued aggressive strategy to defend market share, coupled with strong US production and a looming return of Iranian oil to the market may aggravate oversupplies have pegged oil back in recent sessions. The International Energy Agency expects Iran's exports to rise by half a million billion barrels per day within six-twelve months of sanctions being lifted.
Speculation of further monetary and fiscal stimulus by China, the world’s second biggest oil consumer, also powered the rally in the fuel as traders bet that policy easing may help combat a lingering economic slowdown in the country, thus lifting oil demand.
At the MCX, Crude oil futures, for the January 2016 contract, is trading at Rs 2,409 per barrel, up by 1.01 per cent, after opening at 2,398, against the previous close price of Rs 2,385. It touched an intraday high of Rs 2,411. (At 10:16 AM).
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