Crude oil futures plunged in the domestic and overseas market

Stock Market News

Crude oil futures plunged in the domestic and overseas market on Friday as investors and speculators exited positions in the energy commodity as a spike in the US dollar post an upbeat US jobs data curbed the demand for the fuel as an alternative asset. Stronger greenback makes crude oil more expensive for those holding other currencies, thus dimming demand. Investors cast aside data which showed a thirteenth straight drop in US oil rig count which may signal lower production that may help ease a global supply glut. The number of US oil rigs in operation fell by 64 to 922 in the week ended March 6, 2015, Baker Hughes said. The dollar surged after payrolls in the US climbed by 295,000 in February, following a 239,000 increase in January 2015, capping off the twelfth straight month of above 200K job gains, signaling a pickup in the labour market recovery of the world’s biggest economy. The jobless rate ticked down to 5.5 per cent in February 2015, the lowest in almost seven years, from 5.7 per cent in January. Meanwhile, US trade deficit narrowed from a two-year high of USD 45.6 billion in December, to USD 41.8 billion in January, while US consumer credit climbed by USD 11.6 billion in January from December, when it increased by USD 17.9 billion. Oil may extend a decline today as a slump in Chinese imports last month signaled a weak demand outlook. At the MCX, Crude oil futures, for the March 2015 contract, closed at Rs 3,138 per barrel, down by 2.30 per cent, after opening at Rs 3,209, against the previous close price of Rs 3,212. It touched an intraday low of Rs 3,121 till the closing.

Gold futures slumped in the domestic and overseas market on Friday as investors and speculators exited positions in the precious metal as the US dollar soared to more than an eleven -year high against a basket of select currencies, dampening the demand for the yellow metal as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. Better than expected US jobs data for February raised bets that the US Federal Reserve is moving closer to undertaking the maiden interest rate hike since 2006, dimming the appeal of the bullion as a store of value. The world’s biggest economy added 295,000 jobs in February, following a 239,000 increase in January 2015, marking the twelfth straight month of above 200K job gains, while the jobless rate slid to a near seven- year low. Gold may extend a decline today as the US jobs data signaled that the Fed may raise rates sooner than later. At the MCX, Gold futures for April 2015 contract closed at Rs 26,012 per 10 gram, down by 1.78 per cent after opening at Rs 26,460, against the previous closing price of Rs 26,484. It touched the intra-day low of Rs 26,582 till the closing.

Zinc futures rose in the domestic market on Friday as investors and speculators booked fresh positions in the industrial metal amid a pickup in physical demand for zinc in the domestic spot market. Further, German industrial production climbed for the fifth straight month in January, signaling a pickup in Europe’s biggest economy, lifting the demand outlook for industrial metals. German industrial production climbed by 0.6 per cent in January 2015 from the previous month, when it expanded a revised 1 per cent, the Economy Ministry reported on Friday. At the MCX, Zinc futures for March 2015 contract closed at Rs 126.70 per 1 kg, up by 0.55 per cent after opening at Rs 125.75, against the previous closing price of Rs 126. It touched the intra-day high of Rs 127.10 till the closing.

Copper futures tumbled in the domestic market on Friday as investors and speculators exited positions in the industrial metal tracking a subdued trend in the overseas market as a stronger dollar curbed the demand for the base metal as an alternative asset. Stronger greenback makes copper more expensive for those holding other currencies, thus dimming demand. Stockpiles of copper at the London Metal Exchange (LME) climbed 3.3 per cent to 318,375 tons last week, the highest level since January 2014, signaling ample supplies. Copper may decline today after China’s imports fell 20.5 per cent in February 2015, year on year, signaling weak underlying demand in the world’s biggest metals consumer. At the MCX, Copper futures for April 2015 contract closed at Rs 366 per 1 kg, down by 0.88 per cent after opening at Rs 368.50, against the previous closing price of Rs 369.25. It touched the intra-day low of Rs 365.40 till the closing.

Natural Gas futures closed higher in the domestic market on Friday as investors and speculators booked fresh positions in the energy commodity as forecasts for colder weather in the US bolstered the demand outlook for the heating fuel. Updated weather forecasting models called for colder than normal temperatures over the next two weeks, boosting demand for natural gas which is used for heating purposes by about 49 per cent of US households. At the MCX, Natural Gas futures for March 2015 contract closed at Rs 178.70 per 1 kg, up by 0.73 per cent after opening at Rs 176.2, against the previous closing price of Rs 177.40. It touched the intra-day high of Rs 180.90 till the closing.

Crude oil futures plunged in the domestic market on Monday as investors and speculators exited positions in the energy commodity after China’s imports tumbled last month, signaling weak domestic demand in the world’s second biggest oil consumer, darkening the demand outlook for the fuel. China’s imports fell 20.5 per cent, year on year in February 2015. Meanwhile, OPEC Secretary-General Abdalla El-Badri sees the global oil market returning to balance in the second half of the year from an oversupply of 2 million barrels a day that has pushed prices to a six-year low. At the MCX, Crude oil futures, for the March 2015 contract, is trading at Rs 3,117 per barrel, down by 0.67 per cent, after opening at Rs 3,120, against the previous close price of Rs 3,138. It touched an intraday low of Rs 3,107 till the closing.

Gold futures rose in the domestic market on Monday tracking a positive trend in the overseas market as the sharp losses in the precious metal in recent sessions offered good bargain buying opportunity in the bullion, at existing levels. The bullion plummeted on Friday after better than expected US jobs data for February raised bets that the US Federal Reserve is moving closer to undertaking the maiden interest rate hike since 2006, dimming the appeal of the bullion as a store of value. At the MCX, Gold futures for April 2015 contract closed at Rs 26,075 per 10 gram, up by 0.24 per cent after opening at Rs 26,073, against the previous closing price of Rs 26,012. It touched the intra-day high of Rs 26,096 till the closing.

Copper futures rose in the domestic market on Monday as investors and speculators booked fresh positions in the industrial metal after payrolls in the US climbed by 295,000 in February, following a 239,000 increase in January 2015, capping off the twelfth straight month of above 200K job gains, signaling a pickup in the labour market recovery of the world’s biggest economy, lifting the demand outlook for copper. China’s copper imports fell the most in four years, down 32 per cent to 280,000 metric tons in February from the previous month, signaling weak copper demand in the world’s biggest metals consumer, curbing gains in the base metal. At the MCX, Copper futures for April 2015 contract closed at Rs 367.45 per 1 kg, up by 0.40 per cent after opening at Rs 365.10, against the previous closing price of Rs 366. It touched the intra-day high of Rs 367.75 till the closing.