Crude Oil Prices fell By 0.82 per cent on Monday
Crude oil prices fell by 0.82 per cent on Monday on signs that global crude supply is holding up even as volumes hit by unplanned outages rise to at least five-year highs. In a further indication of abundant supply, the number of rigs operated by US drillers was steady last week for the first time this year. Global oil supply has still outstripped demand by around 1.5 million barrels per day, Russian Energy Minister Alexander Novak said. At the MCX, crude oil futures for June 2016 contract were trading at Rs. 3,254 per barrel, down by 0.82 per cent, after opening at Rs. 3,261 against the previous closing price of Rs. 3,281. It touched the intra-day low of Rs. 3,250 till the trading.
Sentiment weakened further after Japan’s all industries activity index rose less-than-expected last month signaling weak sentiment in the region which reduced the demand outlook for the metal. In a report, Japanese Ministry of Economy, Trade and Industry said that Japan’s All Industries Activity Index rose to a seasonally adjusted 0.1 per cent, from -0.9 per cent in the preceding month whose figure was revised up from -1.2 per cent. Analysts had expected Japan’s All Industries Activity Index to rise 0.7 per cent last month.
A meeting of the OPEC exporters’ group, including Iran, is scheduled for June 2.
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