WTI Crude oil futures extended their recent run higher and consolidated around their three -month highs on persistent buying as global equities went up and US dollar dropped. Strong Chinese data in last week had supported sentiments for the commodity. The counter hit highs of nearly $95 per barrel as China's official manufacturing index rose to the highest level in seven months as new orders and export demand climbed. Weak dollar also boosted oil. The commodity quotes at $94.11, up 55 cents per barrel on the day right now. The global equities are off to a good start this year and the S&P 500 index has hit its highest level in five years. Worries over supplies from Middle East remain in place as well. Iran's crude oil shipments plunged 40 percent in the last nine months, state-run Iranian Students News Agency reported, according to media reports. Iran will export an estimated 1.5 million barrels a day in the Iranian year starting March 21, according to the agency. The International Energy Agency, which advises the world's biggest industrialized economies, said last month that Iranian oil exports will slump to 1 million barrels a day this month as European and Asian nations cut purchases to gain exemptions from U.S. sanctions. The EU banned imports of Iranian crude in July.The Euro jumped to highest levels in nearly one year against the US dollar today, extending its recent gains. Monetary policy needs to help produce the most robust demand growth the US can reasonably achieve with appropriate measures for price stability, because of the consolidation of public sector finances that is needed, Chicago Fed President Charles Evans noted in a public speech today, according to media reports. Industrial output in the 17-nation Eurozone fell 0.3% in November compared with output in October, reflecting the continued slowdown in the overall economy, official data showed today. For the full 27-member European Union, industrial output also fell 0.3%, the Eurostat agency said. In October, industrial output in the Eurozone was down 1.0% and in the EU 0.8%. MCX Crude futures dropped though as the rupee gains by nearly 30 paise. Rupee rose after falling on Friday as local stocks rose to highest levels in more than two years after Finance Minister P Chidambaram said that the government has decided to defer the implementation the General Anti Avoidance Rules or GAAR by two years until 1 April 2016. MCX Crude oil futures fell by nearly 1% during the day and currently trade at Rs 5130, down Rs 6 per barrel on the day with 4.40% increase in the open interest. Prices had dropped to a low of Rs 5117 in intraday moves.
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