Crude oil futures jumped by more than 1 per cent in the domestic market on Tuesday, hitting a 2016 high overseas and regaining the USD 50 per barrel mark as a bigger than expected drawdown in US stockpiles last week and renewed worries over global supplies amidst disruption in Nigerian production buoyed sentiment in the energy commodity.
The industry-funded American Petroleum Institute showed a drop of 3.6 million barrels in US crude oil inventories last week. The EIA will release separate US inventory data on Wednesday.
Meanwhile, a militant group which calls itself the Niger Delta Avengers, and has been bombing pipelines in the region, vowed to reduce oil production in Nigeria, Africa’s top producer until 2015, to zero, raising fresh concerns over a global supply shortfall.
Further, a weaker dollar amidst speculation that the US Fed may delay the timetable for further interest rate hikes also bolstered the lure for the energy commodity as an alternative asset. Softer greenback makes oil cheaper for those holding other currencies, thus bolstering demand.
At the MCX , Crude oil futures for June 2016 contract closed at Rs. 3,347 per barrel, up by 1.27 per cent, after opening at Rs. 3,312, against the previous closing price of Rs. 3,305. It touched the intra-day high of Rs. 3,364.
The industry-funded American Petroleum Institute showed a drop of 3.6 million barrels in US crude oil inventories last week. The EIA will release separate US inventory data on Wednesday.
Meanwhile, a militant group which calls itself the Niger Delta Avengers, and has been bombing pipelines in the region, vowed to reduce oil production in Nigeria, Africa’s top producer until 2015, to zero, raising fresh concerns over a global supply shortfall.
Further, a weaker dollar amidst speculation that the US Fed may delay the timetable for further interest rate hikes also bolstered the lure for the energy commodity as an alternative asset. Softer greenback makes oil cheaper for those holding other currencies, thus bolstering demand.
At the MCX , Crude oil futures for June 2016 contract closed at Rs. 3,347 per barrel, up by 1.27 per cent, after opening at Rs. 3,312, against the previous closing price of Rs. 3,305. It touched the intra-day high of Rs. 3,364.
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