Crude Oil Futures Closed Lower in the Domestic Market

Mcx tips - Crude oil futures closed lower in the domestic market on Monday as investors and speculators exited positions in the energy commodity as worries over a global supply glut remained even as Saudi Arabia, the biggest OPEC oil producer & exporter, said that the cartel, which makes up about 40 per cent of global crude supplies, vowed to work with global oil producers in a bid to stabilize crude oil prices.
 

According to the Saudi Press Agency, the kingdom was ready to work with oil producing and exporting nations in a bid to stabilize prices.Saudi Arabia’s pledge comes ahead of the OPEC meet in Vienna on December 4 which is unlikely to result in a policy change despite the Saudi pledge.
 

An energy official from Venezuela warned that if OPEC doesn’t change its policy, oil prices could drop to as low as “mid-20s” in 2016.Meanwhile, a drop in US existing home sales in October and a sharp slowdown in US factories with manufacturing growth tumbling to a 25-month low in November signaled a cooling recovery in the world’s biggest economy, clouding the demand outlook for the fuel.
 

The gauge measuring US manufacturing fell to 52.6 in November from 54.1 in October, with a reading above 50 signaling expansion. Sales of previously owned homes in the US fell by 3.4 per cent to a 5.36 million annual pace in October.Oil may extend losses today amidst speculation that US crude supplies rose yet again last week, threatening to exacerbate a supply surplus.
 

At the MCX, Crude oil futures, for the December 2015 contract, closed at Rs 2,828 per barrel, down by 0.18 per cent, after opening at 2,803, against the previous close price of Rs 2,833. It touched an intraday low of Rs 2,707.