Crude oil futures came off its five-month highs above $98 per barrel as global growth worries continued to keep a tab on the commodity. The commodity rose in the last week of August on expectations of monetary stimulus from the major global central banks but an array of weak manufacturing data from the top global economies kept the gains limited. The European Central Bank left its key lending rate unchanged at a historical low of 0.75% and the rate on its deposit facility at 0% some time back. Major stock indices in US and Europe shot up around 1-2% after European Central Bank chief Mario Draghi disclosed details of a plan to make unlimited bond purchases in an effort to counter risk premiums tied to fears the euro could break apart. US crude oil stockpiles fell sharply as Hurricane Isaac passed through the US Gulf region and temporarily shut down production platforms, refineries and ports, the US department of energy noted yesterday. Domestic stocks of crude, excluding oil held in the Strategic Petroleum Reserve, fell 7.43 million barrels to 357.1 million barrels in the week ended August 31. Oil has slipped from highs around $98 per barrel and hovers in a broad range of $95-97 in last few days. World economic growth is expected to weaken over the next year. This is according to a survey of 537 opinion leaders in Asia Pacific. According to the report, 62% of respondents expect a weaker global economy in the next twelve months- a view that is essentially unchanged from last year. The MCX Crude oil futures for September faced a trough resistance around Rs 5400 per barrel mark, coming off this level on numerous occasions in the last couple of weeks. Prices tested lows of near Rs 5200 but recovered thereafter and ended above Rs 5300 mark.
Powered by Commodity Insights