CRUDE OIL FUNDAMENTALS : 14.09.2016
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Oil prices fell on Tuesday on concerns over increased drilling in the United States and as investors took profits after oil prices rose in the previous session. Upbeat August Chinese industrial output growth did little to lift oil prices as the crude market remained in a profit-taking mode.
China's industrial output grew the fastest in five months in August as demand for products from coal to cars rebounded thanks to higher government spending and a year-long credit and property boom.
After the market closed the American Petroleum Institute (API) reported a crude build of 1.4 million barrels for the week ended Sept. 9, smaller than the 3.8 million-barrel rise expected by analysts. The U.S. government will issue official inventory data on Wednesday at 20:00 IST However, after some recovery oil fell heavily and ended down by more than 3% on Tuesday after IEA and OPEC revised
forecasts that signaled the global crude glut could persist for much longer than expected.
The International Energy Agency (IEA), which advises oilconsuming countries on their energy policies, said a sharp slowdown in oil demand growth, coupled with ballooning
inventories and rising supply, means the market will be oversupplied at least through the first half of 2017. The IEA's comments follow a surprisingly bearish outlook from the Organization of the Petroleum Exporting Countries on Monday that also pointed to a larger surplus next year due to
new fields in non-member countries. U.S. shale drillers are also proving more resilient than expected to cheap crude, OPEC said.
Domestic crude oil futures ended lower on Tuesday, tracking
weak overseas prices. According to PIB, the international crude oil price of Indian Basket was US$ 44.66 per barrel (bbl) on 13.09.2016. This was lower than the price of US$ 46.43 per bbl on previous
publishing day of 09.09.2016.
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Oil prices fell on Tuesday on concerns over increased drilling in the United States and as investors took profits after oil prices rose in the previous session. Upbeat August Chinese industrial output growth did little to lift oil prices as the crude market remained in a profit-taking mode.
China's industrial output grew the fastest in five months in August as demand for products from coal to cars rebounded thanks to higher government spending and a year-long credit and property boom.
After the market closed the American Petroleum Institute (API) reported a crude build of 1.4 million barrels for the week ended Sept. 9, smaller than the 3.8 million-barrel rise expected by analysts. The U.S. government will issue official inventory data on Wednesday at 20:00 IST However, after some recovery oil fell heavily and ended down by more than 3% on Tuesday after IEA and OPEC revised
forecasts that signaled the global crude glut could persist for much longer than expected.
The International Energy Agency (IEA), which advises oilconsuming countries on their energy policies, said a sharp slowdown in oil demand growth, coupled with ballooning
inventories and rising supply, means the market will be oversupplied at least through the first half of 2017. The IEA's comments follow a surprisingly bearish outlook from the Organization of the Petroleum Exporting Countries on Monday that also pointed to a larger surplus next year due to
new fields in non-member countries. U.S. shale drillers are also proving more resilient than expected to cheap crude, OPEC said.
Domestic crude oil futures ended lower on Tuesday, tracking
weak overseas prices. According to PIB, the international crude oil price of Indian Basket was US$ 44.66 per barrel (bbl) on 13.09.2016. This was lower than the price of US$ 46.43 per bbl on previous
publishing day of 09.09.2016.
