Crude oil prices Retreated sharply in the Domestic Market

Crude oil prices retreated sharply in the domestic market on Monday, sinking by more than 5 per cent as investors and speculators cut risky bets in the energy commodity amid worries that a slowdown in the global economy may curb demand for the fuel.
China cut its economic growth for 2014 to 7.3 per cent from 7.4 per cent reported earlier after a downward revision in the country’s services expansion, clouding the demand outlook for the fuel in the world’s second biggest oil consumer.
 

Meanwhile, mixed US jobs data for August signaled doubts over the demand outlook for the fuel in the world’s biggest oil consumer, souring sentiment.
 

The world’s biggest economy added the fewest jobs in five months in August even as the unemployment rate slipped to the lowest level since April 2008. American employers boosted employment by 173,000 in August, compared to an upwardly revised 245,000 gain in July, and below expectations of a 217,000 rise. However, the unemployment rate fell to 5.1 per cent in August 2015 from 5.3 per cent in July 2015.
 

Oil may extend losses today as China’s exports and imports slid in August, offering further evidence of a deepening slowdown in the world’s second biggest economy that may curb fuel demand.
 

At the MCX, Crude oil futures, for the September 2015 contract, closed at Rs 2,948 per barrel, down by 5.2 per cent, after opening at Rs 3,093, against the previous close price of Rs 3,110. It touched an intraday low of Rs 2,931. 

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