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OPEC has cut crude oil output by a 465,000 barrels a day in December to 30.4 million. There were also reports that Saudi Arabia too cut back on production.

17 Jan 2013

LONDON (Commodity Online): Subsequent to registering an uptrend in futures, crude oil on the NYMEX dropped as investors speculated the rally to be too quick to be sustainable. Besides, profit booking contributed to neagtive sentiments.

“The oil market has been trying to reach new highs but is being met by profit taking,” said Ken Hasegawa, an energy trading manager at Newedge Group in Tokyo to Bloomberg.

“Fundamentally the market is not strong enough to get there yet, but yesterday’s news of OPEC cutting production in December was good support.” he added.

OPEC has cut crude oil output by a 465,000 barrels a day in December to 30.4 million. There were also reports that Saudi Arabia too cut back on production.

The cartel has kept its 2013 global demand forecast with nil alterations at 89.6 million barrels per day.

WTI crude oil for delivery on March 13 was seen trading at $94.33 a loss of $0.35 or 0.37% as of 10.10 AM IST, Thursday. Brent crude for delivery on the same date was seen trading at $109.55 a loss of $0.35 or 0.32%.

MCX crude oil for delivery on January 21 was seen trading at Rs.5136, a loss of 0.27% as of 10.11 AM IST.


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