Crude oil rises on decline in US oil drilling activity
04/07/2017
Crude oil futures closed higher in the domestic market on Monday as the first weekly decline in U.S. oil-drilling activity since January buoyed expectations that domestic production will see a lasting retreat. Still, investors remain skeptical that oil prices have stabilized because of the potential for stronger output from Libya and Nigeria, members of the Organization of the Petroleum Exporting Countries who aren’t taking part in the cartel-led production-cut agreement. The combination of the falling rig count, along with the drop in U.S. oil production is signaling to the market that maybe we will see [an extended] pullback in U.S. production. Still, some analysts say last week’s U.S. output data are hardly compelling as activity was impacted by a tropical storm in the Gulf of Mexico. At the MCX, crude oil futures for July 2017 contract closed at Rs 3045 per barrel, up by 2.59 per cent, after opening at Rs 2974, against a previous close of Rs 2968. It touched the intra-day high of Rs 3047.
04/07/2017
Crude oil futures closed higher in the domestic market on Monday as the first weekly decline in U.S. oil-drilling activity since January buoyed expectations that domestic production will see a lasting retreat. Still, investors remain skeptical that oil prices have stabilized because of the potential for stronger output from Libya and Nigeria, members of the Organization of the Petroleum Exporting Countries who aren’t taking part in the cartel-led production-cut agreement. The combination of the falling rig count, along with the drop in U.S. oil production is signaling to the market that maybe we will see [an extended] pullback in U.S. production. Still, some analysts say last week’s U.S. output data are hardly compelling as activity was impacted by a tropical storm in the Gulf of Mexico. At the MCX, crude oil futures for July 2017 contract closed at Rs 3045 per barrel, up by 2.59 per cent, after opening at Rs 2974, against a previous close of Rs 2968. It touched the intra-day high of Rs 3047.
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