Crude oil prices fell by 1.19 per cent on Friday after US factory orders fell more than expected in December, declining for the fourth time in the past five months signaling weak sentiment in the region which reduced the demand outlook for the fuel. The US Census Bureau said factory orders decreased by a seasonally adjusted 2.9 per cent, worse than forecasts for a decline of 2.8 per cent. Factory orders fell 0.7 per cent in November, whose figure was revised from a previously reported decline of 0.2 per cent. At the MCX, crude oil futures for February 2016 contract were trading at Rs. 2,155 per barrel, down by 1.19 per cent, after opening at Rs. 2,163 against the previous closing price of Rs. 2,181. It touched the intra-day low of Rs. 2,152 till the trading.
However, losses were limited as investors awaited more clarity of the possibility of talks among major producers to cut output. Investors continued to gauge the likelihood of a potential extraordinary OPEC meeting later this month aimed at curbing a glut of oversupply on energy markets throughout the world. Also ahead in the US is rig count data from Baker Hughes.
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