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Oil retreats amidst US economic outlook uncertainties

By Religare
|

Crude oil futures succumbed to losses in the domestic market on Friday as investors and speculators exited positions in the energy commodity as an uncertain US economic outlook marred the demand prospects for the fuel.

A top US Federal Reserve official warned of increased downside risks to the world's biggest economy, stressing that US economic outlook was surrounded by considerable uncertainties including weakness in exports stemming from slowing global growth, low investment amidst a collapse in oil prices and the recent drop in job growth, clouding the demand outlook for oil, given that the US is the world's biggest consumer of the fuel.

 

Losses in the fuel were trimmed by a sixth straight drop in the weekly US oil rig count, which signaled a drop in production ahead, stemming concerns over a supply glut. The number of rigs drilling for oil in the US fell by 9 to the lowest level since July 2010 at 605 in the week ended October 9, 2015.

Oil may extend gains as traders eye the monthly oil report from the OPEC, the cartel that controls over 40 per cent of global oil supplies.

At the MCX, Crude oil futures, for the October 2015 contract, closed at Rs 3,205 per barrel, down by 0.37 per cent, after opening at Rs 3,230, against the previous close price of Rs 3,217. It touched an intraday low of Rs 3,193.

Story first published: Monday, October 12, 2015, 12:50 [IST]
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