Crude oil futures continued their sideways trading pattern; not being able to sustain around 2-month high levels of above $83 a barrel as strong dollar and rising inventories in the US took a toll on the sentiments. Crude oil prices still found stubborn resistance amid concerns about demand. NYMEX light sweet crude oil futures jumped to 2 month high of $ 83.03 per barrel on 10th March but failed to extend further in the next couple of weeks.
The US Energy Department reported that crude inventories rose by 7. 3 million barrels to 351.3 million barrels on 24 March 2010. Though the report said that gasoline stocks fell 2.7 million barrels, more than the 1.3 million forecast, traders are still not worried about the peak summer driving season demand for gasoline to cause a dent into the falling supplies.
Full Story: Crude Oil: Demand Concerns Weigh - BloombergUTV
Oil Tanks India manufacturing facility.
Crude-oil futures settled around $80 as a reduction in fourth-quarter U.S. gross domestic product added to concerns about future oil demand. Light, sweet crude for May delivery settled at $80 a barrel on the New York Mercantile Exchange, the lowest settlement since March 15. Futures fell after the Commerce Department cut its estimate of fourth-quarter GDP to 5.6%, from 5.9% in an earlier report. The downward revision played into fears in the oil market that the U.S. economic recovery is progressing too slowly to significantly boost demand for crude in the coming months.The US Energy Department reported that crude inventories rose by 7. 3 million barrels to 351.3 million barrels on 24 March 2010. Though the report said that gasoline stocks fell 2.7 million barrels, more than the 1.3 million forecast, traders are still not worried about the peak summer driving season demand for gasoline to cause a dent into the falling supplies.
Oil Tanks India manufacturing facility.
Full Story: Crude Oil: Demand Concerns Weigh - BloombergUTV
Leave a comment