MCX Energy Tip Update -- " Oil Holds Extended Bearing "

1. In MCX Energy tips,Oil prices extended a decline in the domestic market on Thursday as a surprise bump in US crude stockpiles last week and an uptick in the country’s oil rig count signaled an increase in production, going forward, exacerbating a global supply glut The number of active US oil drilling rigs climbed by 12 to 640 in the week ended July 2, the first increase in 30 weeks, Baker Hughes said Nerves surrounding the fate of Greece which is on the brink of an exit from the euro and the state of Iran nuclear negotiations which could flood oil markets with millions of barrels of Iranian crude also kept the energy commodity under pressure.Insipid US data which showed that American employers added fewer jobs in June than in May while the size of the workforce receded and monthly earnings at private employers stalled, signaled doubts over the health of the labour market in the world’s biggest economy, trundown the bid outlook for the fuel in the world’s biggest economy.The US economy added 223,000 jobs in 06/ related to May’s downwardly revised 254,000 while jobless claims raised by 10,000 to 281,000 in the week closed to June 27, 2015.Further, bookings for American factory goods slipped 1 per cent in May from the previous month, signaling underlying weakness in US manufacturing, marring sentiment.However, a weaker dollar lessened crude’s pain by bolstering the demand for the fuel as an alternative investment. Weaker greenback makes Oil cheaper for those holding other currencies, thus boosting demand.Oil may continue to remain lower today as a sharp slowdown in China’s services activity in June signaled a worsening growth outlook in the world’s second biggest oil consuming nation.At the MCX, Crude oil futures, for the July 2015 contract, closed at Rs 3,641 per barrel, down by 0.22 per cent, after cracking at Rs 3,636, against the previous end price of Rs 3,649. It touched an intraday low of Rs 3,621.