Crude oil futures pitched more than 4 % news for 13 Nov, 2015

Crude oil futures pitched more than 4 per-cent in the native market on yesterday as investors and speculators exited positions in the energy commodity tracking a heavy sell-off in the overseas market as a seventh straight increase in United States crude oil stockpiles last week signaled concerns over a worsening global supply glut.

The EIA reported that United States crude oil inventories climbed by 4.22 million barrels to 487 million barrels in the week closed on 6th Nov, the highest level since April month. Analysts were expecting a 1.3 million barrels rise in weekly storage levels. While supplies at Cushing, the biggest United States oil storage hub went high by 2.24 million barrels last week, the biggest gain since March, US crude production elevated 25,000 barrels per day to 9.19 million barrels per day previous week.
 

Traders cast aside data which signaled an improvement in the labour market recovery of the world’s biggest economy, auguring well for fuel demand outlook. Whilst the number of positions waiting to be filled in the US climbed by 149,000 to the second highest level on record at 5.53 million in September 2015, jobless claims were unchanged at 276,000 last week.

Oil may expand a rout today as swelling inventories increase supplies. At the MCX, Crude oil futures, for the November 2015 contract, closed at Rs 2,771 per barrel, went down by 4.22 per-cent, after opening at Rs 2,890, as compared to the previous close price of Rs 2,893. It attained an intraday low of Rs 2,764.

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