Crude oil futures plunged by 3 per cent in the domestic market on Friday as investors and speculators cut risky bets in the energy commodity which sank to the lowest level in 11 weeks in the overseas market as concerns over a global supply glut worsened. The IEA said that global crude oil stockpiles stood at a record near 3 billion barrels by the end of September as it forecast global oil demand growth to slow to 1.2 million barrels per day in 2016 from 1.8 million barrels per day this year.
OPEC, the cartel which accounts for about 40 per cent of global crude supplies, said that surplus crude inventories were at the highest level in at least a decade due to record production.
A rise in US oil rig count for the first time in almost three months last week signaled an increase in production, going ahead, threatening to exacerbate a supply glut. Baker Hughes said that the number of rigs drilling for oil in the US crept up by 2 to 574 last week.
A smaller than expected increase in US retail sales in October signaled a slowdown in consumer spending in the world’s biggest economy which may curb fuel demand. US retail sales rose a paltry 0.1 per cent in October from September when they stood little changed. However, a gauge measuring US consumer sentiment surged to a four-month high of 93.1 in November from 90 in October.
Oil may extend losses today as a renewed Japan recession curbs fuel demand.
At the MCX, Crude oil futures, for the Nov 2015 contract, closed at Rs 2,689 per barrel, down by 3 per cent, after starting at Rs 2,759, against the previous close price of Rs 2,771. It touched an intraday low of Rs 2,677.
OPEC, the cartel which accounts for about 40 per cent of global crude supplies, said that surplus crude inventories were at the highest level in at least a decade due to record production.
A rise in US oil rig count for the first time in almost three months last week signaled an increase in production, going ahead, threatening to exacerbate a supply glut. Baker Hughes said that the number of rigs drilling for oil in the US crept up by 2 to 574 last week.
A smaller than expected increase in US retail sales in October signaled a slowdown in consumer spending in the world’s biggest economy which may curb fuel demand. US retail sales rose a paltry 0.1 per cent in October from September when they stood little changed. However, a gauge measuring US consumer sentiment surged to a four-month high of 93.1 in November from 90 in October.
Oil may extend losses today as a renewed Japan recession curbs fuel demand.
At the MCX, Crude oil futures, for the Nov 2015 contract, closed at Rs 2,689 per barrel, down by 3 per cent, after starting at Rs 2,759, against the previous close price of Rs 2,771. It touched an intraday low of Rs 2,677.
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