Today Crude oil consolidates recovery 5 Feb, 2016

Mcx Crude oil futures advanced in the local market on yesterday as investors and traders booked fresh positions in the energy commodity amidst ongoing speculation of a near-term meeting between OPEC and non-OPEC producers to discuss a potential outcome cut in a bid to help combat ballooning supplies and quell market volatility.

Media reports emerged that Venezuela and 6-other oil producing countries are planning to hold an emergency meet of OPEC and non-OPEC members. Moreover, that list did not include Saudi Arabia, OPEC’s most significant & influential member, and whose participation in any such planned meeting is critical to the prospects of production cuts.

Traders shrugged off tepid US economic data which indicated uncertainty over the demand outlook for the fuel in the world’s largest gas consuming nation. The number of Americans who filed applications & seeking for unemployment benefits rose by 8,000 to 285,000 last week while factory orders fell the most in a year, plunging by 2.9 per-cent in Dec month.

MCX, February 2016 contract for Crude oil futures, closed at Rs 2,181 per barrel, up by 0.51 per cent, after unlocking at 2,187, against the previous close price of Rs 2,170. It attained an intraday high of Rs 2,278.