Crude Oil Tips
(At 10:08 hours): Crude oil futures were trading lower in the domestic market on Friday as investors and speculators exited positions in the energy commodity on worries that US rig counts would continue to rise and that returning Libyan and Nigerian exports would stoke a global supply glut.
US drillers added 7 oil rigs in the week to September 9, bringing the total rig count to 414, the most since February.
Also, returning supply from Libya and Nigeria will hamper a rebalancing of the global crude market, weighed on the sentiment.
At the MCX, crude oil futures for September 2016 contract is trading at Rs 2,918 per barrel, down by 1.02 per cent, after opening at Rs 2,925, against a previous close of Rs 2,948. It touched the intra-day low of Rs 2,915.
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(At 11:18 AM): Crude oil futures plunged by more than 1 per cent during morning trade in the domestic market on Friday as investors and speculators exit positions in the energy commodity as a return of disrupted supplies and slowing demand growth threaten to prolong a supply glut.
Libya and Nigeria are planning to boost crude exports within weeks. Supplies from the two OPEC members had been curbed by domestic conflicts.
The IEA warned that the global oil surplus is expected to last longer than it had previously anticipated as output remains resilient while demand growth weakens.
Major oil producing nations will meet later this month amid speculation of an agreement on some measures to stabilize the market.
At the MCX, crude oil futures for September 2016 contract is trading at Rs 2,912 per barrel, down by 1.22 per cent, after opening at Rs 2,925, against a previous close of Rs 2,948. It touched the intra-day low of Rs 2,910.
Author
Name: Venkatesh Swami
Company: Bonaz Capital
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