Crude oil updates - “Crude oil extends Slide on Oversupply”

Crude oil futures extended a losing streak in the domestic market on Monday with prices in the international market sliding to the lowest level since 2004 as traders bet on a worsening global supply glut as producers battle for market share.

Global crude supplies are near record-highs with Iran and Libya set to flood the market with more oil whilst the US’ decision on Friday to end a 40—year ban on its crude exports also threatens to aggravate an oversupply situation.
 

With the OPEC, the cartel that makes up about 40 per cent of global crude supplies, showing no signs of cutting production, swelling global supplies are set to outpace demand in 2016.
 

A gauge of US economic activity remained in contraction for the second month on the trot in November, signaling cooling growth in the world’s biggest economy which may curb fuel demand. The Chicago Fed National Activity Index came in at -0.30 in November, compared to -0.17 in October, with a reading below 0 signaling contraction.
 

Oil may ink a slight rebound today as the sharp losses in recent sessions offer a good bargain buying opportunity, to investors, in the fuel, at existing levels.
 

At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,385 per barrel, down by 0.71 per cent, after opening at 2,402, against the previous close price of Rs 2,402. It touched an intraday low of Rs 2,366.