Crude oil futures turn negative as OPEC cut global oil demand growth forecast

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Crude oil futures turn negative
Crude oil futures on Wednesday opened on lower note in the domestic market as the Organization of Petroleum Exporting Countries (OPEC) reduced its global oil demand growth forecast for this year and 2012, putting pressure on crude oil futures in the overseas market today. It expects oil demand will grow 880,000 barrels a day this year, down from an earlier forecast of 1.06 million barrels, while consumption is expected to rise by 1.19 million barrels a day in 2012 to 89 million against a previous estimation of 1.27 million barrels.

At the Multi Commodity Exchange (MCX), crude oil futures for October 2011 contract traded at Rs. 4,210 per barrel, down by 0.71 per cent, after opening at Rs. 4,243 against the previous closing price of Rs. 4,240. It touched the intra-day low of Rs. 4,206 till the trading. (At 10:30 AM Wednesday).

At the New York Mercantile Exchange (NYMEX), crude oil futures for November 2011 contract traded at US$85.34 per barrel, down by 47 cents, after opening at US$85.20 against the previous closing of US$85.81. It touched the intra-day low of US$84.52 with a business volume of 6,926 lots till the electronic trading. (At 10:35 AM Wednesday).

Moreover, Slovakian lawmakers voted against on Europe's bailout fund and the U.S. Senate members blocked President Barack Obama's US$447 billion plan to create jobs.

Read more about: oil and gas, futures, crude oil, opec
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