Oil....
MCX Crude oil futures witnessed a sizable
correction in the first hour of trade today as traders unloaded their
recent longs in a hurry. The global prices witnessed a barrier at their
five-week highs and fell for the first time in six sessions today amid a
mixed-to- bearish undertone in Asian equities. The WTI futures are
quoting at $96.81, down 42 cents per barrel on the day.
NYMEX
light sweet Crude Oil for May delivery gained nearly 4% in the last
week. Recovering risk appetite in the world resulted in the rise of
Crude oil futures even as the inventories moved up in the
holiday-shortened week. The prices in coming days will be riding on
further clarity of bailouts in other Eurozone countries and the rising
Crude oil stockpiles.
Crude oil participants are also keeping
an eye on the reserved in Cushing crude stocks. The reserves in the
region can dip bringing an impact on the overall prices of Crude oil in
NYMEX. Meanwhile, Oil output in OPEC nations is anticipated to reach
lowest levels since October 2011. The supplies are expected to average
at 30.18 million barrels per day, down 30.42 million barrels per day in
February.
The decline is mainly on account of disruptions of
supplies in Libya, exporting problems in Iraq and news of pipeline leaks
in Nigeria. In October 2011, OPEC had produced 29.81 million barrels
per day of Crude Oil. The current retreat might prove out to be short
lived though as supportive economies cues could cap the selling.
The official Chinese purchasing managers index, a government survey of
manufacturers, rose to 50.9 in March from 50.1 in February. It was the
highest reading since April last year, indicating that growth in
manufacturing activity accelerated. MCX Crude oil futures had managed to
test Rs 5400 per barrel level in earlier session and dropped quite
quickly today, tumbling to a low of Rs 5297 per barrel. The counter
currently trades at Rs 5301, down Rs 99 per barrel or 1.83% on the day
with 14.63% drop in the open interest. Traders seem to be cutting their
recent longs furiously.
Source by Commodity Insights
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