Crude oil futures extended the worst slump in nearly six and a half years as traders weighed a surprise bump in US crude oil storage levels last week, which exacerbated concerns over a worsening global supply glut.
Stockpiles of the energy commodity in the US increased a significant 2.6 million barrels in the week ended August 14 to 456.2 million barrels, the highest level in at least 80 years.
Meanwhile, investors weighed mixed signals over US monetary tightening as the Federal Reserve said in the minutes of its latest meet that conditions warranting an interest rate hike were fast approaching but weak inflation and a slowing global economy remained a concern.
A worsening rout in Chinese stocks which shed more than 1.5 per cent on Thursday amid concerns that a slowing economy and a depreciating currency may spark capital outflows undermined confidence in the health of the world’s second biggest economy, darkening the demand outlook for the fuel.
At the MCX, Crude oil futures, for the September 2015 contract, is trading at Rs 2,700 per barrel, down by 0.37 per cent, after opening at Rs 2,700, against the previous close price of Rs 2,710. It touched an intraday low of Rs 2,694. (At 11:40 AM).
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