Crude Oil Surges On Bullish Demand Outlook
Crude oil prices rose by 1.13 per cent on Tuesday as the market focused on supply disruptions that prompted Goldman Sachs to issue a bullish assessment on near-term prices. The disruptions triggered a turnaround in the outlook for the oil market from Goldman Sachs. The US bank, which had long warned of global storage hitting capacity and of another oil price crash, now sees US crude trading high in the second half of 2016.
At the MCX, crude oil futures for May 2016 contract were trading at Rs. 3,215 per barrel, up by 1.13 per cent, after opening at Rs. 3,195 against the previous closing price of Rs. 3,179. It touched the intra-day high of Rs. 3,217 till the trading.
A further bullish note was sounded by the US Energy Information Administration (EIA) when it said shale oil output is expected to drop in June for an eighth consecutive month. Shale output is expected to fall by nearly 113,000 barrels per day (bpd) to 4.85 million bpd, as the nearly two-year slump in prices continues to undermine profitability at drillers, the EIA report released shows.
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