Crude Oil Tips: Crude oil futures pulled back after Friday’s impressive rally as prices of the energy commodity slipped by over 2.5 per cent in the domestic market on Monday tracking losses in the overseas market amidst concerns that the weekend’s massive snowstorm which rocked the US East Coast may sap the demand for the fuel.
Prices had surged over 5 per cent on Friday as the European Central Bank (ECB) signaled stepping up its easing program in March, bolstering the demand outlook for the fuel.
A sharp contraction in US regional manufacturing activity triggered fears over a slowdown in the world’s biggest economy, clouding the demand outlook for the fuel. The Dallas Fed’s general business activity index, a gauge measuring manufacturing activity in the region tumbled to the lowest level since April 2009, down by 13 points to -34.6 in January, with a reading below zero signaling contraction.
Oil may rebound today amidst speculation of co-operation between OPEC and Non-OPEC members to cut output and support prices. However, the gains in the fuel may be curbed by rising US storage levels as the API showed an 11.4 million barrels jump in crude stockpiles last week.
At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,100 per barrel, down by 2.69 per cent, after opening at 2,170, against the previous close price of Rs 2,158. It touched an intraday low of Rs 2,075.
Prices had surged over 5 per cent on Friday as the European Central Bank (ECB) signaled stepping up its easing program in March, bolstering the demand outlook for the fuel.
A sharp contraction in US regional manufacturing activity triggered fears over a slowdown in the world’s biggest economy, clouding the demand outlook for the fuel. The Dallas Fed’s general business activity index, a gauge measuring manufacturing activity in the region tumbled to the lowest level since April 2009, down by 13 points to -34.6 in January, with a reading below zero signaling contraction.
Oil may rebound today amidst speculation of co-operation between OPEC and Non-OPEC members to cut output and support prices. However, the gains in the fuel may be curbed by rising US storage levels as the API showed an 11.4 million barrels jump in crude stockpiles last week.
At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,100 per barrel, down by 2.69 per cent, after opening at 2,170, against the previous close price of Rs 2,158. It touched an intraday low of Rs 2,075.
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