Crude oil prices rallied by a massive 7.7 per cent in the domestic market on Friday, marking their biggest two-day gain since 2009 in the overseas market amid short-covering while a rebound in stock markets in China, the world’s second biggest oil consumer, eased concerns over the fuel’s demand outlook.
China’s benchmark index soared nearly 5 per cent on Friday, as traders weighed the impact of the latest set of monetary easing moves including a fresh interest rate cut and reduction of bank reserve requirements which may help bolster growth in the world’s second biggest economy, auguring well for crude oil.
Meanwhile, robust US consumer spending data showed that the biggest part of the world’s biggest economy, remains in solid shape, bolstering the demand outlook for the fuel. US consumer purchases climbed 0.3 per cent in July from June as wages notched up their biggest gain since November, up by 0.5 per cent.
However, recent stock market turbulence took toll on American consumer sentiment which hit a three-month low of 91.9 in August, down from 93.1 in July. Investors shrugged off data showing a sixth straight weekly gain in US oil rig count which rose by 1 to 675, signaling higher production, going ahead.
Oil futures may fall today as a renewed China stock market sell-off sours sentiment.
MCX, Crude oil futures, for the September 2015 contract, closed at Rs 3,005 per barrel, up by 7.7 per cent, after opening at Rs 2,810, against the previous close price of Rs 2,789. It touched an intraday high of Rs 3,046.
Read More - Crude oil Buzz
0 comments:
Post a Comment