Crude oil futures rallied by more than 1 per cent in the domestic market on Tuesday as investors and speculators booked fresh positions in the energy commodity after an industry report showed a drop in US crude oil storage levels last week, easing fears over a global supply glut.
The industry-funded American Petroleum Institute (API) said that US crude supplies fell 3.1 million barrels in the week ended September 11, 2015. Supplies at Cushing, the biggest oil storage hub in the US, declined 1.5 million barrels last week.
Further, the EIA said that oil output from the seven major US shale plays is likely to drop by 80,000 barrels per day in September from the previous month, while the IEA warned that US oil producers may be forced into significant cuts in 2016 amidst lower oil prices.
The OPEC has cut its estimate for non-OPEC supplies in 2015 by about 72,000 barrels per day to 880,000 barrels per day amidst lower than expected production in the US.
Traders weighed mixed US economic data which showed that retail sales in the US rose for a second month on the trot, up 0.2 per cent in August from the previous month, while factory output declined the most since January 2014, down 0.5 per cent last month, clouding the demand outlook in the world’s biggest economy.
Oil prices may retreat today as traders stay cautious ahead of the weekly EIA data on US crude stockpiles.
At the MCX, Crude oil futures, for the September 2015 contract, closed at 2,955 Rs per barrel, up by 1.09 per cent, after opening at Rs 2,934, against the previous close price of Rs 2,923. It touched an intraday high of Rs 2,994.
The industry-funded American Petroleum Institute (API) said that US crude supplies fell 3.1 million barrels in the week ended September 11, 2015. Supplies at Cushing, the biggest oil storage hub in the US, declined 1.5 million barrels last week.
Further, the EIA said that oil output from the seven major US shale plays is likely to drop by 80,000 barrels per day in September from the previous month, while the IEA warned that US oil producers may be forced into significant cuts in 2016 amidst lower oil prices.
The OPEC has cut its estimate for non-OPEC supplies in 2015 by about 72,000 barrels per day to 880,000 barrels per day amidst lower than expected production in the US.
Traders weighed mixed US economic data which showed that retail sales in the US rose for a second month on the trot, up 0.2 per cent in August from the previous month, while factory output declined the most since January 2014, down 0.5 per cent last month, clouding the demand outlook in the world’s biggest economy.
Oil prices may retreat today as traders stay cautious ahead of the weekly EIA data on US crude stockpiles.
At the MCX, Crude oil futures, for the September 2015 contract, closed at 2,955 Rs per barrel, up by 1.09 per cent, after opening at Rs 2,934, against the previous close price of Rs 2,923. It touched an intraday high of Rs 2,994.
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