Commodity Trading Tips: Crude oil futures advanced by 5 per cent on Friday in the domestic market while notching up its biggest two-day rally since 2008 in the overseas market as hopes of global central bank stimulus bolstered the demand outlook for the fuel.
Speculation grew that the Bank of Japan will step up stimulus while the European Central Bank (ECB) also hinted at further monetary easing as soon as March as policymakers step up efforts to combat depressed inflation amidst a rout in commodities.
A drop in US rig count last week signaled lower production ahead in the world’s biggest economy, buoying sentiment. Baker Hughes said that the no of rigs drilling for oil in the US fell by 5 to 510 in the week ended January 22, 2016.
Mostly upbeat US data which showed that sales of previously owned homes surged in December that helped the housing market mark its best year since 2006 and a rebound in manufacturing from a 38-month low in January signaled a strengthening recovery in the American economy, auguring well for fuel demand.
US existing home sales climbed by a record 14.7% to a 5.46 million annual pace in December while the gauge measuring manufacturing climbed to 52.7 this month from 51.2 in December, with a reading above 50 signaling expansion. However, a gauge of US leading indicators declined for the first time in three months in December 2015, down by 0.2 per cent from the prior month.
Oil may extend gains today as the recent plunge in the energy commodity continues to offer an excellent bargain buying opportunity, for investors, in the fuel, at existing levels.
At the Multi Commodity Exchange, Crude oil futures, for the January 2016 contract, closed at Rs 2,158 per barrel, up by 5 per cent, after opening at 2,040, against the previous close price of Rs 2,055. It touched an intraday high of Rs 2,168.
Speculation grew that the Bank of Japan will step up stimulus while the European Central Bank (ECB) also hinted at further monetary easing as soon as March as policymakers step up efforts to combat depressed inflation amidst a rout in commodities.
A drop in US rig count last week signaled lower production ahead in the world’s biggest economy, buoying sentiment. Baker Hughes said that the no of rigs drilling for oil in the US fell by 5 to 510 in the week ended January 22, 2016.
Mostly upbeat US data which showed that sales of previously owned homes surged in December that helped the housing market mark its best year since 2006 and a rebound in manufacturing from a 38-month low in January signaled a strengthening recovery in the American economy, auguring well for fuel demand.
US existing home sales climbed by a record 14.7% to a 5.46 million annual pace in December while the gauge measuring manufacturing climbed to 52.7 this month from 51.2 in December, with a reading above 50 signaling expansion. However, a gauge of US leading indicators declined for the first time in three months in December 2015, down by 0.2 per cent from the prior month.
Oil may extend gains today as the recent plunge in the energy commodity continues to offer an excellent bargain buying opportunity, for investors, in the fuel, at existing levels.
At the Multi Commodity Exchange, Crude oil futures, for the January 2016 contract, closed at Rs 2,158 per barrel, up by 5 per cent, after opening at 2,040, against the previous close price of Rs 2,055. It touched an intraday high of Rs 2,168.
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