Sunday, 28 July 2013
Crude Oil Slips On Demand Concerns
Crude oil futures slipped below $95 a barrel in the Asia electronic trades today on demand concerns from China after the official data released over the weekend showing profits at Chinese industrial firms slowed in June.
The Beijing-based National Bureau of Statistics said on Friday, that the net income increased 6.3 percent from a year earlier to 502.4 billion yuan ($82 billion), down from a 15.5 percent pace in May. Profit from main business operations fell 2.3 percent after an 8.8 percent gain the previous month, it said.
Industrial companies’ profits in the first six months of the year rose 11.1 percent to 2.58 trillion yuan, down from a 12.3 percent gain in the January-May period, and sales rose 11.4 percent to 47.8 trillion yuan.
In Asia today, the Hang Seng Index lost 1% and the Hang Seng China Enterprises Index skidded 1.8%. The Shanghai Composite dropped 1.4%, on course for a fourth straight day of losses. The Nikkei Stock Average fell 1.9% to 13,855.41, dropping below the 14,000-point level.
Light sweet crude futures for delivery in September are trading down 28 cents at $ 104.42 per barrel on the New York Mercantile Exchange. On the week, Nymex oil futures fell 3.24%.
In the week ahead, the U.S. is to publish data on gross domestic product and manufacturing activity to further gauge the strength of the U.S. economy. In addition, traders will be eyeing the Fed's monthly policy statement for indications on the future of the central bank's bond-buying program.
MCX August crude oil futures may open today’s session near Rs 6150 levels with support around Rs 6100-070 levels.
Source by Commodity Insights