Crude Oil ends lower on weak demand prospects

Crude Oil futures ended lower in the domestic market on Thursday as the U.S. dollar rallied after strong economic data increased the likelihood that the Federal Reserve would raise interest rates in September. The U.S. Commerce Department said retail sales increased by 0.6 per cent last month, beating expectations for a gain of 0.5 per cent while Core sales in June increased 0.4 per cent, whose figure was revised from a previously reported decline of 0.1 per cent. Sentiment weakened further as investors weighed gloomy demand prospects from China as a third straight devaluation of the Yuan by the Chinese central bank pushed the currency to a four-year low against the dollar, threatening to curb Chinese consumer buying power. Meanwhile, Euro area industrial output fell 0.4 per cent in June from the previous month, signaling a faltering recovery in the 19-member economy, darkening the demand outlook for the fuel. At the MCX, Crude oil futures, for the August 2015 contract, closed at Rs 2,758 per barrel, down by 2.23 per cent, after opening at Rs 2,816, against the previous close price of Rs 2,821. It touched an intraday low of Rs 2,746.

 

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