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Oil Bulls take charge on upbeat US factory data

By Religare
|

Marking a positive finish to a turmoil-ridden week amidst fears that China's massive Yuan devaluations may curb demand for the energy commodity in the world's second biggest oil consumer, crude oil prices notched up impressive gains on Friday as a faster than expected rise in US factory output signaled a pickup in the world's biggest economy, lifting the demand outlook for the fuel.

US factory production climbed 0.8 per cent in July 2015 from the previous month, when it declined a revised 0.3 per cent, while overall industrial output rose 0.6 per cent.

 

Investors cast aside data which showed that a gauge measuring US consumer sentiment fell for a second month to 92.9 in August from 93.1 in July while the number of rigs drilling for oil in the US climbed for a fourth straight week, up by 2 to 672 last week, signaling an uptick in production ahead, which may exacerbate a global supply glut.

Meanwhile, fears over China's demand outlook eased after the country's central bank raised the Yuan's reference rate following massive devaluations earlier in the week.

Oil may extend gains today on hopes that an improving US economy may consume more fuel.

At the MCX, Crude oil futures, for the August 2015 contract, closed at Rs 2,780 per barrel, up by 0.80 per cent, after opening at Rs 2,742, against the previous close price of Rs 2,758. It touched an intraday high of Rs 2,797.

Story first published: Monday, August 17, 2015, 12:30 [IST]
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