Crude Oil closes lower on oil rig build

Crude Oil prices ended lower in the domestic market on Friday as a modest build in oil rigs last week provided fresh concerns of the bearish effects of an increasing glut of oversupply on dwindling oil prices. Oil services firm Baker Hughes said in its weekly rig count on Friday that US oil rigs rose by six to 670 for the week that ended on July 31, marking the third consecutive week of weekly builds. Oil rigs nationwide have now moved higher in five of the last six weeks, following more than 25 weeks of weekly draws. Last fall, the US oil rig count peaked above 1,500. Elsewhere, the dollar moved broadly higher amid solid US jobs figures for the month of July. A stronger dollar reduced the demand for crude oil as an alternative asset. Stronger greenback makes the commodity expensive for those holding other currencies, thus reducing demand. At the MCX, Crude oil futures, for the August 2015 contract, closed at Rs 2,824 per barrel, down by 0.81 per cent, after opening at Rs 2,857, against the previous close price of Rs 2,847. It touched an intraday low of Rs 2,815.

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