Crude prices went high on yesterday as Japan posted stronger than estimated machinery orders & China declared an easing of few import taxes, lending the market at least temporary support in an environment of general oversupply. U.S. crude futures were at $38.08 per barrel at 0209 GMT, up 57 cents from their last settlement. Internationally traded Brent futures were up around half a dollar at $40.74 a barrel.
Burgeoning crude oil inventories, amid strong world wide supplies, led to deep price declines in the previous two years. US crude oil inventories continued to lift up in 2015 contributing to the negative sentiment in crude oil market.
US crude inventories rose for the constant 10th week, increasing 1.2 m barrels in the week to Nov 27. Fall in prices of crude oil have led to high cost producers viz shale producers from US to reduce outcome. Moreover, fall in outcome from shale, in response to low prices, has been less than expectations of experts.
Read More : Mcx crude tips
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