The largest consumer of oil across the globe, United States closed down on a weaker trade last day possible due to the concerns over demand among US, Asian as well as Indian economy markets. To keep up this demand, US traders crashed down their crude prices early this month but the momentum has simply gone for a toss with this week"s commencement.
A chain effect has been witness among the Asian trade courtesy demand concerns casting a spell on the market analyzers. In lieu of the profit booking fixed from last day"s closing gains, the Bombay Stock Exchange today suffered a crash down of 1.2% in their Oil & Gas sector.
Top Oil Co. losers of the day include ONGC that trailed off 5.5% the instant there flashed a statement from the government telling upstream oil companies to be prepared for bearing a subsidy share of 38.5% in the total Rs. 30,000 crore burdens slaughtering the shoulders of government for this financial year.
Tailing this news and demand concerns on top of that, there has been a lightning fast effect among oil producers and traders with Oil India going down 4.3%, RIL declining 1.6%, Petronet LNG falling by 2.63% and HPCL suffering a downturn of about 1.05% in the anvil.
Demand concerns were initiated by the International Energy Agency which cut back on the global oil demand growth for this year to as low as 89.2 million barrels per day as the oil prices seemed to be shooting up.