Oil was back in Bear terrain on Thursday as a stronger dollar wreaked havoc, overshadowing a sizeable drop in US weekly production and inventory levels reported by the EIA a day earlier.A stronger dollar cut the demand for crude as an alternative asset. Stronger greenback makes dollar-denominated commodities such as oil more expensive for those holding other currencies, thus dimming demand.Dollar’s strength outweighed the 151,000 barrels dip in US crude production and a bigger than expected drop of 4.2 million barrels in US storage levels last week that eased worries over a global supply glut.Meanwhile, US economic data came in mixed as a pickup in economic growth in Q1 contrasted with an increase in the number of applications for seeking jobless benefits. The world’s biggest economy expanded at an annualized pace of 2.3 per cent in the June quarter following a revised 0.6 per cent gain in Q1 driven by solid gains in consumer spending. Jobless claims climbed by 12,000 to 267,000 in the week ended July 25, 2015.Oil may rebound today on hopes that a pickup in US economic growth may bolster demand for the fuel in the world’s biggest oil consumer.
At the MCX, Crude oil futures, for the August 2015 contract, closed at Rs 3,132 per barrel, down by 0.51 per cent, after opening at Rs 3,144, against the previous close price of Rs 3,148. It touched an intraday low of Rs 3,122.
View More - mcx commodity tips
0 comments:
Post a Comment