Commodity Trading Tips: Crude oil futures soared by over 7% in the domestic market on Thursday, nudging towards the USD 30 per barrel park overseas as a recent rout in the energy commodity when worries that an influx of Iranian crude following the lift-off of sanctions against the Islamic Republic may worsen a supply glut & a slowing global economy may curb demand, paved the way for bargain buying in the fuel, by investors & speculators, at existing levels.
An attack on Libyan oil terminals signaled renewed risks to supplies from the oil-rich Middle East region. According to media reports, Islamic State militants attacked key oil terminals in northern Libya in a bid to seize control of export terminals, lowering the possibility of the country increasing its exports in the near-term.
Investors shrugged off a hefty increase in US storage levels last week. The EIA reported a 4 million barrels rise in US crude stockpiles to 486.5 million barrels in the week ended January 15, 2016. Supplies at Rushing, the biggest US oil storage hub, climbed 191,000 barrels last week.
Traders cast aside weak US labor and regional factory data as the number of Americans who sought to claim jobless benefits soared to a six-month high last week while manufacturing activity in the Philadelphia region shrank for the fifth month on the trot in January, clouding the demand outlook for the fuel in the world’s biggest economy.
US jobless claims climbed by 10,000 to 293,000 in the week ended January 16. The gauge measuring Philadelphia manufacturing came in at -3.5 this month, compared to -10.2 in December, with a reading below 0 signaling contraction.
Oil may extend gains today as prospects of central bank stimulus from Japan to the Euro area bolsters demand outlook.
At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,055 per barrel, up by 7.09 per cent, after opening at 1,934, against the previous close price of Rs 1,919. It touched an intraday high of Rs 2,069.
An attack on Libyan oil terminals signaled renewed risks to supplies from the oil-rich Middle East region. According to media reports, Islamic State militants attacked key oil terminals in northern Libya in a bid to seize control of export terminals, lowering the possibility of the country increasing its exports in the near-term.
Investors shrugged off a hefty increase in US storage levels last week. The EIA reported a 4 million barrels rise in US crude stockpiles to 486.5 million barrels in the week ended January 15, 2016. Supplies at Rushing, the biggest US oil storage hub, climbed 191,000 barrels last week.
Traders cast aside weak US labor and regional factory data as the number of Americans who sought to claim jobless benefits soared to a six-month high last week while manufacturing activity in the Philadelphia region shrank for the fifth month on the trot in January, clouding the demand outlook for the fuel in the world’s biggest economy.
US jobless claims climbed by 10,000 to 293,000 in the week ended January 16. The gauge measuring Philadelphia manufacturing came in at -3.5 this month, compared to -10.2 in December, with a reading below 0 signaling contraction.
Oil may extend gains today as prospects of central bank stimulus from Japan to the Euro area bolsters demand outlook.
At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,055 per barrel, up by 7.09 per cent, after opening at 1,934, against the previous close price of Rs 1,919. It touched an intraday high of Rs 2,069.
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