Crude oil fell to the lowest level in five months

Business

oi-Monika Nihalani

By Monika Nihalani

Published: Friday, August 5, 2011, 15:37 [IST]

Crude oil futures witnessed a steep fall in five months amid panic sell-off in global equities. A global sell-off was triggered by deepening fears that the sluggish global economies will hit the energy demand.

Recent fall in crude has wiped out the gains for the year.

Limited improvement in the US labour market lead to fall in Oil futures by 5.8%, as reported by bloomberg.

U.S. gasoline demand, averaged over four weeks, slipped 0.3% to 9.07 million barrels a day in the period ended July 29, the Energy Department reported yesterday.

Prices also fell after crude stockpiles progressed for a second week in the seven days ended July 29, according to Energy Department data as supply outpaced demand.

U.S. inventories rose 950,000 barrels to 354.9 million barrels.

Crude future prices have fallen by more than eight percent in last two weeks.

Crude futures for August delivery, at MCX, opened at Rs 3,836 per BBL and was trading in the range of Rs 3,733 – Rs 3,765 at 12:20 pm IST.

On equities front, the shares of public sector oil companies have gained.

Stocks such as IOC, HPCL and BPCL are trading in positive zone tracking global fall in crude oil prices.

BPCL shares rose by 1.65% and was trading at Rs 697.25 at 12:22 pm IST.

IOC was up by 0.87% and was trading at Rs 332.20 same time.

While, HPCL grew by 2.68% and was trading at Rs 402.90% same time.

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