HOME         WEBSITE         SUBSCRIBE           E-GREETINGS   
                               

Thursday, November 13, 2014

Crude settles at its lowest level since 2011

Crude futures prices have lost about 30% since a peak in June 


Crude Oil prices settled at their lowest since 2011, on Wednesday, 12 November 2014 at Nymex as a drop in OPEC production last month nearly matched output increases from countries outside the cartel. 

On the New York Mercantile Exchange, light, sweet crude futures for delivery in December fell 76 cents, or 1%, to finish at $77.18 a barrel. That's oil lowest settlement since 4 October 2011. New York-traded oil futures are down 22% so far this year. Crude futures prices have lost about 30% since a peak in June amid concerns about the supply glut and slackening global demand. 

In its monthly oil market report released Wednesday, OPEC said its production in October dropped by 230,000 barrels of oil a day to 30.25 million barrels a day, with production decreases from Saudi Arabia, Angola, and Nigeria. Libyan production rose. 

Crude output from countries that do not belong to OPEC, however, rose by 250,000 barrels of oil a day, OPEC said in the report. The share of OPEC crude-oil production in the global output decreased to 32.7%, compared with 33% in September. 

OPEC has signaled it would not move to cut production when it meets Nov. 27 in Vienna. Saudi Arabia and other top producing OPEC members have instead cut the price of their oil, a move viewed as a way to preserve market share. 

In the report, OPEC kept its estimate for global oil demand growth unchanged at 1.05 million barrels a day, and its 2015 forecast also in line with the previous month's report at 1.19 million barrels a day. 

Also on Wednesday, the International Energy Agency released its annual outlook report, saying that global energy demand will increase by 37% over the next 20 years, but turmoil in many key producing regions and policy challenges mean that energy supply may not be adequate. 

Among other energy products, December gasoline rose less than a penny, or 0.2%, to end at $2.1070 a gallon on Nymex. December heating oil lost 2 cents, or 0.9%, to finish at $2.4469 a gallon on Nymex. 

Elsewhere in energy trading, natural gas for December delivery retreated 6 cents, or 1.5%, to settle at $4.1850 per million British thermal units. Natural gas has been down for three straight sessions.
Posted by

Blog Archive

____________________________________________________________________________________________

Disclaimer - All investments in Mutual Funds and securities are subject to market risks and uncertainty of dividend distributions and the NAV of schemes may go up or down depending upon factors and forces affecting securities markets generally. The past performance of the schemes is not necessarily indicative of the future performance and may not necessarily provide a basis for comparison with other investments. Investors are advised to go through the respective offer documents before making any investment decisions. Prospective client(s) are advised to go through all comparable products in offer before taking any investment decisions. Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the fund will be achieved. Information gathered & material used in this document is believed to be from reliable sources. Decisions based on the information provided on this newsletter/document are for your own account and risk.


In the preparation of the material contained in this document, Varun Vaid has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the Varun Vaid and which may have been made available to Varun Vaid. Information gathered & material used in this document is believed to be from reliable sources. Varun Vaid however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Varun Vaid does not in any way through this material solicit any offer for purchase, sale or any financial transaction/commodities/products of any financial instrument dealt in this material. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice.


Varun Vaid, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. Any person subscribing to or investigating in any product/financial instruments should do soon the basis of and after verifying the terms attached to such product/financial instrument. Financial products and instruments are subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. Please note that past performance of the financial products and instruments does not necessarily indicate the future prospects and performance there of. Such past performance may or may not be sustained in future. Varun Vaid, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation in the financial instruments/products/commodities discussed here in or act as advisor or lender / borrower in respect of such securities/financial instruments/products/commodities or have other potential conflict of interest with respect to any recommendation and related information and opinions. The said person may have acted upon and/or in a manner contradictory with the information contained here. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of Varun Vaid. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else.


Varun Vaid also does not take any responsibility for the contents of the advertisements published. Readers are advised to verify the contents on their own before acting there upon.


Published Credits goes to following sources & all the mentioned sources as footer below the published material- Bloomberg, Valueresearch Online, Capital Market, Navindia, Franklin Templeton, Kitco, SBI AMC, LIC AMC, JM Financial AMC, HDFC AMC, The Hindu, Business Line, Personal FN, Economic Times, Reuters, Outlook Money, Business Standard, Times of India etc.