Oil fell to $118 a barrel on Tuesday, a three-month low, as investors focused on rising OPEC supply and declining demand in the United States and Europe.
The loss extends a slide from the July 11 record high of $147.27 a barrel, despite a Gulf of Mexico storm that has curbed oil output, and is prompting some to say that oil's rally has run its course for now.
"Most of the hedge funds have been taking profits," said Angus McPhail of British-based investment firm Alliance Trust.
Asked how far prices could fall, he said: "Probably to about $100 within the next month if you keep on getting weak demand data."
U.S. crude was down $1.89 at $119.52 a barrel by 1310 GMT and fell as far as $118.00, the lowest price since May 5. London Brent crude lost $2.10 to $118.58.
Other commodities such as copper, gold and platinum also fell, hit by concern slower economic growth will limit demand and as the dollar rose, making commodities priced in dollars more expensive for holders of other currencies.
Tropical Storm Edouard has curbed Gulf of Mexico oil production, shipping and refining. But traders were discounting the risk of wider disruption to oil facilities.
"It seems that the market is losing interest in geopolitical and weather-induced 'props', and instead is becoming more aware of growing supply/demand imbalances," said Edward Meir, analyst at MF Global.
Monday's losses came after Reuters survey showed OPEC oil supply rose for a third consecutive month in July mainly because of increased output from the world's top exporter Saudi Arabia.
The boost in production from OPEC, source of two in every five barrels, coincides with soaring energy prices and an economic slowdown that has eroded consumption in the United States and Europe.
Investors awaited the outcome of a Federal Reserve meeting later in the day. The Fed is expected to leave its benchmark interest rate at 2.0 percent as it faces higher inflation risks and threats to economic growth.
Tension between major oil exporter Iran and the West over Tehran's nuclear work, and supply losses and violence in Africa's top producer Nigeria, provided support for oil prices.
Iran has handed European Union officials its written reply to a proposal backed by six world powers aimed at defusing a row over the nuclear programme, Iran's Fars News Agency said on Tuesday.
Showing posts with label Crude Oil and Gold. Show all posts
Showing posts with label Crude Oil and Gold. Show all posts
Oil falls to three-month low of $118
Be ready for high oil price regime: Montek
The Planning Commission said on Thursday that the nation should be ready for “high oil price regime” amid a continuous surge in global crude prices.
The Deputy Planning Commission Chairman Dr Montek Singh Ahluwalia's statement coincides with the Petroleum Secretary Mr M S Srinivasan's comment that India will review the retail prices in October.
“We have to move to a high oil price regime,” he told reporters on the sidelines of Diamond Jubilee function of the Institute of Chartered Accountants of India (ICAI).
He, however, said economic growth could slow down to 8 per cent in the face of high crude prices and inflation. Government had increased the fuel prices on June 5, a move that propelled the inflation to a 13-year high of over 11 per cent.
As regards the fiscal deficit, he said, “There is nothing sacrosanct about the number...My personal view is that when we face a shock... some of the shock will be reflected in the budget.” - PTI
The Deputy Planning Commission Chairman Dr Montek Singh Ahluwalia's statement coincides with the Petroleum Secretary Mr M S Srinivasan's comment that India will review the retail prices in October.
“We have to move to a high oil price regime,” he told reporters on the sidelines of Diamond Jubilee function of the Institute of Chartered Accountants of India (ICAI).
He, however, said economic growth could slow down to 8 per cent in the face of high crude prices and inflation. Government had increased the fuel prices on June 5, a move that propelled the inflation to a 13-year high of over 11 per cent.
As regards the fiscal deficit, he said, “There is nothing sacrosanct about the number...My personal view is that when we face a shock... some of the shock will be reflected in the budget.” - PTI
Crude import bill may soar to $110-120 billion in FY'09
India's crude import bill may jump by up to 76 per cent to $110-120 billion this year based on current global prices, Petroleum Secretary, Mr M S Srinivasan said on Thursday.
“It will go up if the prices rise further,'' he told reporters on the sidelines of the 19th World Petroleum Congress as crude prices rose to a record $144 a barrel on Thursday.
In 2007-08, the import bill was $67.988 billion and the country had imported 121.672 million tonnes of crude. This year, the import would be higher because Reliance Petroleum's export oriented 29 MT refinery is set for commissioning in August-September.
He said fuel consumption growth will be 5-6 per cent, but if the current pricing policies continue, wherein auto fuels are cheaper than industrial fuel like naphtha, the demand may go up because there is a tendency for power generators to switch to diese l instead of fuel oil and naphtha for electricity generation. - PTI
“It will go up if the prices rise further,'' he told reporters on the sidelines of the 19th World Petroleum Congress as crude prices rose to a record $144 a barrel on Thursday.
In 2007-08, the import bill was $67.988 billion and the country had imported 121.672 million tonnes of crude. This year, the import would be higher because Reliance Petroleum's export oriented 29 MT refinery is set for commissioning in August-September.
He said fuel consumption growth will be 5-6 per cent, but if the current pricing policies continue, wherein auto fuels are cheaper than industrial fuel like naphtha, the demand may go up because there is a tendency for power generators to switch to diese l instead of fuel oil and naphtha for electricity generation. - PTI
HPCL runs out of fuel as crude hits record high
Hindustan Petroleum Corporation plunged 5.38% to Rs 168 at 12:09 IST on BSE as crude oil hit a fresh record high above $144 a barrel on Wednesday, 2 July 2008..
Meanwhile, the BSE Sensex was down 566.07 points, or 4.14%, to 13,098.55 after the Dow Jones Industrial Average sank into a bear market on Wednesday 2 June 2008 and as oil price rose to a record high
On BSE, 41,478 shares were traded in the counter. The scrip had an average daily volume of 2.47 lakh shares in the past one quarter.
The stock today hit a 52-week low of Rs 165.60. The stock hit a high of Rs 176 so far during the day. The stock had a 52-week high of Rs 405.90 on 4 January 2008.
The mid-cap company had underperformed the market over the past one month till 2 July 2008, declining 28.58% compared to the Sensex’s decline of 14.40%. It had also underperformed the market in the past one quarter, 31.24% compared to Sensex’s decline of 13.69%.
The company has an equity capital of Rs 339.33 crore. Face value per share is Rs 10.
The current price of Rs 168 discounts its Q4 March 2008 annualised EPS of Rs 45.37, by a PE multiple of 3.70.
The sharp spurt in crude prices will put further pressure on fuel retailers as they continue to sell products below the cost price. Global crude oil prices are up over 40% in this calendar year so far.
As per reports, Hindustan Petroleum Corporation (HPCL) will develop bio-jet from ethanol, bio-diesel and bio-butanol through a collaborative research and development (R&D) project. The company will join hands with Indian Institute of Petroleum, Dehra Dun and the National Chemical Laboratory, Pune for this project, reports added.
HPCL’s net profit fell 30% to Rs 384.51 crore on 44% increase in net sales to Rs 31,470.61 crore in Q4 March 2008 over Q4 March 2007.
HPCL undertakes downstream petroleum activities including development of infrastructure and marketing of LPG and other petroleum products.
On BSE, 41,478 shares were traded in the counter. The scrip had an average daily volume of 2.47 lakh shares in the past one quarter.
The stock today hit a 52-week low of Rs 165.60. The stock hit a high of Rs 176 so far during the day. The stock had a 52-week high of Rs 405.90 on 4 January 2008.
The mid-cap company had underperformed the market over the past one month till 2 July 2008, declining 28.58% compared to the Sensex’s decline of 14.40%. It had also underperformed the market in the past one quarter, 31.24% compared to Sensex’s decline of 13.69%.
The company has an equity capital of Rs 339.33 crore. Face value per share is Rs 10.
The current price of Rs 168 discounts its Q4 March 2008 annualised EPS of Rs 45.37, by a PE multiple of 3.70.
The sharp spurt in crude prices will put further pressure on fuel retailers as they continue to sell products below the cost price. Global crude oil prices are up over 40% in this calendar year so far.
As per reports, Hindustan Petroleum Corporation (HPCL) will develop bio-jet from ethanol, bio-diesel and bio-butanol through a collaborative research and development (R&D) project. The company will join hands with Indian Institute of Petroleum, Dehra Dun and the National Chemical Laboratory, Pune for this project, reports added.
HPCL’s net profit fell 30% to Rs 384.51 crore on 44% increase in net sales to Rs 31,470.61 crore in Q4 March 2008 over Q4 March 2007.
HPCL undertakes downstream petroleum activities including development of infrastructure and marketing of LPG and other petroleum products.
Recovery derailed as crude oil strikes fresh record high
A recovery on the bourses from lower level in early afternoon trade proved short lived thanks to news that crude oil has hit a fresh record high of $141.71 a barrel just a while ago. European markets, which opened after Indian market, slipped in early volatile trade.
Earlier today, the Sensex tumbled to 13-month lows following a setback in stocks in Asia and US, sharp spurt in crude oil prices and political uncertainty due to Indo-US nuclear deal. BSE Mid-Cap index, ICICI Bank and Tata Motors touched 52-week lows today.
Inflation based on the whoolesale price index stood at 11.42% for the week ended 14 June 2008. It was 11.05% in the previous week. The rise has been primarily on account of higher prices of food items like tea, milk and cereals. The other commodities, whose prices went up during the week were lubricants and manufactured items.
The market breadth was weak. Realty, auto and banking stocks declined sharply. Shares of oil marketing and air carriers were hit hard following surge in crude oil prices.
Political uncertainty continued to dog bourses. As per reports in a section of the media, Congress president Sonia Gandhi has given the green signal to Prime Minister Manmohan Singh to go ahead with the Indo-US nuclear deal even if it leads to the collapse of the government at the Centre. Left parties are opposing the deal and they have threatened to withdraw their support to the government if it went ahead with operationalisation of the deal.
US stocks plunged on Thursday, 26 June 2008, with the Dow Jones Industrial Average sliding about 360 points to a 21-month low as oil hit a record and Goldman Sachs urged investors to sell bank and automaker shares, escalating concern about the outlook for profits.
At 13:28 IST, the 30-share BSE Sensex was down 538.83 points or 3.73% at 13,884.57. The Sensex opened with a sharp downward gap of 294.06 points at 14,127.76 and declined further to touch a low of 13,784.37 in mid-morning trade, its lowest level in more than 13 months. At the day’s low, the Sensex plunged 637.45 points.
The broader based S&P CNX Nifty tanked 166.40 points or 3.86% at 4,149.45, and was trading at a 10-month low.
Standard and Poor’s (S&P) and its Indian subsidiary Crisil have lowered their India growth forecast for the current year to 7.8% from 8.1-8.6% earlier. The agencies said that the Indian economy would be hit by the surge in inflation fuelled by energy and commodity prices.
The market breadth was weak on BSE with 1962 shares declining as compared to 500 that advanced. 53 remained unchanged.
The BSE Mid-Cap index was down 2.79% to 5,581.79 after touching a 52-week low of 5,577.35. The BSE Small-Cap index shed 2.29% to 6,965.86. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3487 crore by 13:30 IST as compared to Rs 2554 crore by 12:30 IST. The turnover was boosted by 3 large block deals of 20.12 lakh shares each on ACC counter on BSE struck at an average price of Rs 596 per share in opening trade. It was the top traded counter on BSE with turnover of Rs 727.95 crore. The stock slipped 3.11% to Rs 581.
Reliance Industries (Rs 347.68 crore), Reliance Capital (Rs 199.09 crore), Reliance Petroleum (Rs 198.46 crore), Niraj Cement & Structurals (Rs 146.24 crore), and were the other turnover toppers on BSE.
29 shares from the 30-member Sensex pack were trading with losses.
Tata Steel, the world's sixth-largest steelmaker in terms of sales, gained 0.36% to Rs 759.80 after striking day’s high of Rs 783.90. Earlier, the stock recovered sharply from day’s low of Rs 733. The counter saw high volumes of 18.21 lakh shares. On Thursday 26 June 2008, the company reported 195.64% jump in consolidated net profit to Rs 12349.98 crore on 415.04% growth in total income to Rs 132110.09 crore in the year ended March 2008 (FY 2008) over the year ended March 2007. The results are non-comparable due to merger Corus Group with Tata Steel in FY 2008.
At the time of announcing the results, Tata Steel managing director B. Muthuraman said it had raised prices for one-year steel sale contracts. 25% of Tata Steel's total sales were through annual contracts, he said.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) recovered from day’s low of Rs 2137. It was now down 2.51% to Rs 2182 on 16.22 lakh shares. The stock struck a high of Rs 2247. RIL will start pumping 25 million standard cubic metres a day (mmscmd) of natural gas by September from its D-6 field in the Krishna Godavari basin, the oil ministry said on Wednesday, 25 June 2008. It said the output would be raised to 40 mmscmd by March 2009.
Software stocks dropped on concerns about the impact of a slowing US economy, their key market. India’s third largest software services exporter Wipro plunged 7.49% to Rs 444 on 1.59 lakh shares. It was the top loser from Sensex pack.
Other software pivotals, Infosys (down 4.02% to Rs 1710.20), and TCS (down 2.51% to Rs 845.80), were not spared either.
Satyam Computer Services, the country’s fourth largest software services exporter slumped 2.89% to Rs 446.50 even as the company said it has formed an alliance with US based Sciformix Corporation to provide end to end management services in 'Pharmacovigilance'. The company made this announcement after trading hours yesterday, 26 June 2007.
Auto stocks suffered severe setback on fears that surge in oil may impact their sales. Mahindra & Mahindra (M&M) (down 7.31% to Rs 512.25), Ashok Leyland (down 2.85% to Rs 30.70), Hero Honda Motors (down 4.52% to Rs 681), and Maruti Suzuki India (down 3.75% to Rs 651.50), were the other losers from auto pack.
India’s top truck manufacturer in terms of sales, Tata Motors slumped 6.22% to Rs 459. The stock touched a 52-week low of Rs 454.10 on BSE.
Banking shares were weak after inflation data was released, with India’s largest private sector bank in terms of net profit ICICI Bank striking 52-week low of Rs 647 on BSE. The stock crashed 7.59% to Rs 645.80.
State Bank of India (down 3.47% to Rs 1174), Kotak Mahindra Bank (down 3.76% to Rs 499), Axis Bank (down 6.54% to Rs 632), Bank of India (down 5.72% to Rs 231.75), and HDFC Bank (down 4.81% to Rs 1007.50), were the other losers from banking sector.
Real estate stocks slipped on selling pressure, with the BSE Realty index touching 52-week low of 4,841.49. Akruti City (down 3.65% to Rs 694.40), DLF (down 3.98% to Rs 432.35), Ansal Infrastructure (down 5.01% to Rs 74.90), Phoenix Mills (down 12.82% to Rs 164.25), and Unitech (down 1.61% to Rs 182.80), also declined.
Ambuja Cement (down 4.75% to Rs 83.35), Bharti Airtel (down 3.96% to Rs 736), and Reliance Infrastructure (down 4.97% to Rs 913), edged lower from Sensex pack.
Oil marketing companies declined as surge in crude oil prices to record high will increase their under recoveries. Hindustan Petroleum Corporation (down 3.30% to Rs 190.50), Bharat Petroleum Corporation (down 4.81% to Rs 256.45), and Indian Oil Corporation (down 4.87% to Rs 337), declined.
Shares of air carriers also declined on selling pressure in the wake of surging oil prices. Jet Airways (down 3.67% to Rs 498.90), SpiceJet (down 1.82% to Rs 27), and Deccan Aviation (down 3.30% to Rs 73.35), slipped.
Anant Raj Industries jumped 7.51% to Rs 146 after the company said a Bahrain realty fund acquired a minority stake in its subsidiary Anant Raj Projects for Rs 216.38 crore. The company made this announcement during trading hours today, 27 June 2007.
Hatsun Agro Product declined 3.56% to Rs 433 after fixing 24 July 2008 as the record date for 5-for-1 stock split. The company announced this during trading hours today, 27 June 2007.
California Software Company surged 4.94% to Rs 89.25 after posting 64.64% growth in net profit to Rs 27.33 crore on 11% increase in net sales to Rs 3.33 crore in Q4 March 2008 over Q3 December 2007. The company announced the results after trading hours yesterday, 26 June 2007.
European markets, which opened after Indian markets, were lower in opening trade. Key benchmark indices in United Kingdom, Germany and France were down by between 0.43% and 1.58%.
Asian markets, which opened before Indian markets, were trading weak today, 27 June 2008. Shanghai Composite (down 4.47% at 2,772.15), Japan's Nikkei (down 2.22% at 13,515.12), Hang Seng (down 1.78% at 22,054.84), Taiwan's Taiwan Weighted (down 3.44% at 7,542.69), Singapore's Straits Times (down 1.41% at 2,938.93) and South Korea's Seoul Composite (down 2.10% at 1,681.65) edged lower.
US markets tumbled yesterday, 26 June 2008 as higher oil, credit-market writedowns and a slowing economy threatened to extend a yearlong profit slump. The Dow Jones industrial average plunged 358.41 points, more than 3%, to close at 11,453.42 on Thursday. The Standard & Poor's 500 fell 38.82 points, about 3 percent, to 1,283.15, and the Nasdaq composite lost 79.89 points, or 3.3%, to 2,321.37.
Back home, short covering ahead of expiry of June 2008 derivatives contracts helped market move higher for the second straight session yesterday, 26 June 2008. The 30-share BSE Sensex gained 201.75 points or 1.42% at 14,421.82 and the broader based S&P CNX Nifty was up 63.20 points or 1.49% at 4,315.85, on that day.
As per reports, the marketwide rollover of positions from June 2008 contracts to July 2008 contracts in the derivatives segment stood at 82% while that of Nifty was 70%. June 2008 derivaties contracts expired yesterday, 26 June 2008.
Foreign institutional investors (FIIs) were net buyers of Rs 918.59 crore in the futures & options segment yesterday, 26 June 2008. They were net buyers of index futures to the tune of Rs 1023.89 crore and sold index options worth Rs 368.21 crore. They were net buyers of stock futures to the tune of Rs 33.80 crore and bought stock options worth Rs 33.80 crore.
In the cash market, as per provisional data, foreign funds sold shares worth a net Rs 667.19 crore on Thursday, 26 June 2008. Domestic funds bought shares worth a net Rs 395.64 crore.
Earlier today, the Sensex tumbled to 13-month lows following a setback in stocks in Asia and US, sharp spurt in crude oil prices and political uncertainty due to Indo-US nuclear deal. BSE Mid-Cap index, ICICI Bank and Tata Motors touched 52-week lows today.
Inflation based on the whoolesale price index stood at 11.42% for the week ended 14 June 2008. It was 11.05% in the previous week. The rise has been primarily on account of higher prices of food items like tea, milk and cereals. The other commodities, whose prices went up during the week were lubricants and manufactured items.
The market breadth was weak. Realty, auto and banking stocks declined sharply. Shares of oil marketing and air carriers were hit hard following surge in crude oil prices.
Political uncertainty continued to dog bourses. As per reports in a section of the media, Congress president Sonia Gandhi has given the green signal to Prime Minister Manmohan Singh to go ahead with the Indo-US nuclear deal even if it leads to the collapse of the government at the Centre. Left parties are opposing the deal and they have threatened to withdraw their support to the government if it went ahead with operationalisation of the deal.
US stocks plunged on Thursday, 26 June 2008, with the Dow Jones Industrial Average sliding about 360 points to a 21-month low as oil hit a record and Goldman Sachs urged investors to sell bank and automaker shares, escalating concern about the outlook for profits.
At 13:28 IST, the 30-share BSE Sensex was down 538.83 points or 3.73% at 13,884.57. The Sensex opened with a sharp downward gap of 294.06 points at 14,127.76 and declined further to touch a low of 13,784.37 in mid-morning trade, its lowest level in more than 13 months. At the day’s low, the Sensex plunged 637.45 points.
The broader based S&P CNX Nifty tanked 166.40 points or 3.86% at 4,149.45, and was trading at a 10-month low.
Standard and Poor’s (S&P) and its Indian subsidiary Crisil have lowered their India growth forecast for the current year to 7.8% from 8.1-8.6% earlier. The agencies said that the Indian economy would be hit by the surge in inflation fuelled by energy and commodity prices.
The market breadth was weak on BSE with 1962 shares declining as compared to 500 that advanced. 53 remained unchanged.
The BSE Mid-Cap index was down 2.79% to 5,581.79 after touching a 52-week low of 5,577.35. The BSE Small-Cap index shed 2.29% to 6,965.86. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3487 crore by 13:30 IST as compared to Rs 2554 crore by 12:30 IST. The turnover was boosted by 3 large block deals of 20.12 lakh shares each on ACC counter on BSE struck at an average price of Rs 596 per share in opening trade. It was the top traded counter on BSE with turnover of Rs 727.95 crore. The stock slipped 3.11% to Rs 581.
Reliance Industries (Rs 347.68 crore), Reliance Capital (Rs 199.09 crore), Reliance Petroleum (Rs 198.46 crore), Niraj Cement & Structurals (Rs 146.24 crore), and were the other turnover toppers on BSE.
29 shares from the 30-member Sensex pack were trading with losses.
Tata Steel, the world's sixth-largest steelmaker in terms of sales, gained 0.36% to Rs 759.80 after striking day’s high of Rs 783.90. Earlier, the stock recovered sharply from day’s low of Rs 733. The counter saw high volumes of 18.21 lakh shares. On Thursday 26 June 2008, the company reported 195.64% jump in consolidated net profit to Rs 12349.98 crore on 415.04% growth in total income to Rs 132110.09 crore in the year ended March 2008 (FY 2008) over the year ended March 2007. The results are non-comparable due to merger Corus Group with Tata Steel in FY 2008.
At the time of announcing the results, Tata Steel managing director B. Muthuraman said it had raised prices for one-year steel sale contracts. 25% of Tata Steel's total sales were through annual contracts, he said.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) recovered from day’s low of Rs 2137. It was now down 2.51% to Rs 2182 on 16.22 lakh shares. The stock struck a high of Rs 2247. RIL will start pumping 25 million standard cubic metres a day (mmscmd) of natural gas by September from its D-6 field in the Krishna Godavari basin, the oil ministry said on Wednesday, 25 June 2008. It said the output would be raised to 40 mmscmd by March 2009.
Software stocks dropped on concerns about the impact of a slowing US economy, their key market. India’s third largest software services exporter Wipro plunged 7.49% to Rs 444 on 1.59 lakh shares. It was the top loser from Sensex pack.
Other software pivotals, Infosys (down 4.02% to Rs 1710.20), and TCS (down 2.51% to Rs 845.80), were not spared either.
Satyam Computer Services, the country’s fourth largest software services exporter slumped 2.89% to Rs 446.50 even as the company said it has formed an alliance with US based Sciformix Corporation to provide end to end management services in 'Pharmacovigilance'. The company made this announcement after trading hours yesterday, 26 June 2007.
Auto stocks suffered severe setback on fears that surge in oil may impact their sales. Mahindra & Mahindra (M&M) (down 7.31% to Rs 512.25), Ashok Leyland (down 2.85% to Rs 30.70), Hero Honda Motors (down 4.52% to Rs 681), and Maruti Suzuki India (down 3.75% to Rs 651.50), were the other losers from auto pack.
India’s top truck manufacturer in terms of sales, Tata Motors slumped 6.22% to Rs 459. The stock touched a 52-week low of Rs 454.10 on BSE.
Banking shares were weak after inflation data was released, with India’s largest private sector bank in terms of net profit ICICI Bank striking 52-week low of Rs 647 on BSE. The stock crashed 7.59% to Rs 645.80.
State Bank of India (down 3.47% to Rs 1174), Kotak Mahindra Bank (down 3.76% to Rs 499), Axis Bank (down 6.54% to Rs 632), Bank of India (down 5.72% to Rs 231.75), and HDFC Bank (down 4.81% to Rs 1007.50), were the other losers from banking sector.
Real estate stocks slipped on selling pressure, with the BSE Realty index touching 52-week low of 4,841.49. Akruti City (down 3.65% to Rs 694.40), DLF (down 3.98% to Rs 432.35), Ansal Infrastructure (down 5.01% to Rs 74.90), Phoenix Mills (down 12.82% to Rs 164.25), and Unitech (down 1.61% to Rs 182.80), also declined.
Ambuja Cement (down 4.75% to Rs 83.35), Bharti Airtel (down 3.96% to Rs 736), and Reliance Infrastructure (down 4.97% to Rs 913), edged lower from Sensex pack.
Oil marketing companies declined as surge in crude oil prices to record high will increase their under recoveries. Hindustan Petroleum Corporation (down 3.30% to Rs 190.50), Bharat Petroleum Corporation (down 4.81% to Rs 256.45), and Indian Oil Corporation (down 4.87% to Rs 337), declined.
Shares of air carriers also declined on selling pressure in the wake of surging oil prices. Jet Airways (down 3.67% to Rs 498.90), SpiceJet (down 1.82% to Rs 27), and Deccan Aviation (down 3.30% to Rs 73.35), slipped.
Anant Raj Industries jumped 7.51% to Rs 146 after the company said a Bahrain realty fund acquired a minority stake in its subsidiary Anant Raj Projects for Rs 216.38 crore. The company made this announcement during trading hours today, 27 June 2007.
Hatsun Agro Product declined 3.56% to Rs 433 after fixing 24 July 2008 as the record date for 5-for-1 stock split. The company announced this during trading hours today, 27 June 2007.
California Software Company surged 4.94% to Rs 89.25 after posting 64.64% growth in net profit to Rs 27.33 crore on 11% increase in net sales to Rs 3.33 crore in Q4 March 2008 over Q3 December 2007. The company announced the results after trading hours yesterday, 26 June 2007.
European markets, which opened after Indian markets, were lower in opening trade. Key benchmark indices in United Kingdom, Germany and France were down by between 0.43% and 1.58%.
Asian markets, which opened before Indian markets, were trading weak today, 27 June 2008. Shanghai Composite (down 4.47% at 2,772.15), Japan's Nikkei (down 2.22% at 13,515.12), Hang Seng (down 1.78% at 22,054.84), Taiwan's Taiwan Weighted (down 3.44% at 7,542.69), Singapore's Straits Times (down 1.41% at 2,938.93) and South Korea's Seoul Composite (down 2.10% at 1,681.65) edged lower.
US markets tumbled yesterday, 26 June 2008 as higher oil, credit-market writedowns and a slowing economy threatened to extend a yearlong profit slump. The Dow Jones industrial average plunged 358.41 points, more than 3%, to close at 11,453.42 on Thursday. The Standard & Poor's 500 fell 38.82 points, about 3 percent, to 1,283.15, and the Nasdaq composite lost 79.89 points, or 3.3%, to 2,321.37.
Back home, short covering ahead of expiry of June 2008 derivatives contracts helped market move higher for the second straight session yesterday, 26 June 2008. The 30-share BSE Sensex gained 201.75 points or 1.42% at 14,421.82 and the broader based S&P CNX Nifty was up 63.20 points or 1.49% at 4,315.85, on that day.
As per reports, the marketwide rollover of positions from June 2008 contracts to July 2008 contracts in the derivatives segment stood at 82% while that of Nifty was 70%. June 2008 derivaties contracts expired yesterday, 26 June 2008.
Foreign institutional investors (FIIs) were net buyers of Rs 918.59 crore in the futures & options segment yesterday, 26 June 2008. They were net buyers of index futures to the tune of Rs 1023.89 crore and sold index options worth Rs 368.21 crore. They were net buyers of stock futures to the tune of Rs 33.80 crore and bought stock options worth Rs 33.80 crore.
In the cash market, as per provisional data, foreign funds sold shares worth a net Rs 667.19 crore on Thursday, 26 June 2008. Domestic funds bought shares worth a net Rs 395.64 crore.
Oil price to hit $150-170 in coming months: OPEC
PARIS: The president of OPEC, Algerian Energy Minister Chakib Khelil, predicted on Thursday that oil prices would rise to $150-170 a barrel during the northern hemisphere summer.
Khelil insisted on Tuesday that oil producers saw no need to raise supply, blaming high prices on factors outside their control such as US pressure on Iran and the weak US dollar.
Speaking after talks with European Union nations, Khelil said the cartel of oil states believes it is pumping enough oil to supply current demand and has stocks and extra capacity to spare.
Khelil said prices in the next few weeks depend largely on how the US deals with Iran and the strength of the US dollar.
The US, supported by the European Union, wants Iran to permanently halt uranium enrichment, a technology that can give Iran the capacity to produce materials for a nuclear bomb if it wanted. Iran denies that, saying it only wants to produce energy.
"I think the market is probably waiting to see how the dollar is going to evolve in July, how the geopolitical situation is going to evolve with the threats made on Iran," Khelil said.
"I don't think OPEC can do much about the geopolitics," he said. "I think some other people have to do something about that because if you have threats in areas that are producing areas or potentially producing areas, then of course the market will react to it.
" The president of the Organisation of the Petroleum Exporting Countries, or OPEC, - based mostly in the Gulf region - could only handle one factor behind high prices: making more oil available.
"I think we are doing that and we think we are doing that very well," he said. "All you need to do is to look at the data to be convinced that the market is well supplied in oil and that we have enough surplus capacity and that we have enough stocks in the market.
" The 13 OPEC members have for years gathered regularly to establish production quotas. They control some 40 per cent of world oil output. Despite the current surge in oil prices and growing global demand, they have refused as a group to boost production.
However, Saudi Arabia, the world's largest oil producer, has said it would add 200,000 barrels per day in July to a 300,000 barrel per day production increase it first announced in May, raising total daily output to 9.7 million barrels.
OPEC members include: Algeria, Angola, Ecuador, Iran, Iraq, Libya, Nigeria, Saudi Arabia, Venezuela, Kuwait, Qatar and the United Arab Emirates.
Arjun Narayan Murti of Goldman says oil prices may dip to $75
WASHINGTON: A Goldman Sachs analyst of Indian-origin who has roiled the world by predicting oil prices as high as $200 a barrel says those levels are unsustainable and prices maybe driven back to $75 or lower in the long term. Arjun Narayan Murti, author of the so-called ''super-spike'' theory has told the journal Barrons that the $150-$200 levels will be a temporary feature, and once high prices start to reduce demand (a more likely scenario than increased supply), the price will start to come down.
''Our view has been that the price will keep going up to the level where it meaningfully reduces demand. This is Economics 101; we need more supply or less demand. And because there are various political and geologic constraints on growing supply, we're left with looking for the price at which demand is reduced,'' Murti, told the Dow Jones' journal.
"Our long-term oil forecast looking out 20 years is for crude to fall back to $75 a barrel, or some lower number. The questions are: How long do prices stay high? How sharply do they rise? And do people truly change their behaviour or are they just temporarily driving less? It's an unknown at this point,'' he added. Murti has been pilloried for what some see as alarmist projections that have helped speculators make a killing in the market.
The low-key analyst, who typically declines to be interviewed, much less photographed (probably as a security measure), has stuck to his super-spike theory for years before it came to wide-spread public attention. Murti's rare interview to Barrons under the headline ''What Mr Crude Oil Sees Ahead,'' came even as retail gas prices at the pump touched a record nationwide average of $4 in the United States this weekend, sparking off a nationwide anguish.
A survey issued last week found that 74% of Americans would change their driving habits if gasoline were to top $4 per gallon. If gasoline prices hit $5 a gallon, 85% of Americans would cut out nonessential driving, consolidate errands, carpool, walk or bike, according to the survey by Ipsos Public Affairs. Even as $4 a gallon (about 3.78 liters), Americans are still paying roughly half of what most Europeans pay and a little less than what Indians pay at the pump. But this gap is narrowing quickly. Experts are predicting gas in the US will hit $ 4.50 a gallon by July 4, and if Murti's dire forecast of $200 a barrel comes through, price at the pump would be $5.75 per gallon.
Murti said he is already starting to see a drop in demand in the US, but the demand growth in the non-OECD countries, including China, the Middle East and Asia continues unabated. He is also not sure at what point will there be a sustained change in American consumer behavior. ''So if the price temporarily goes to $4 a gallon but immediately falls back to $3, it's likely that people will keep driving cars with poor gasoline mileage. But if people believe the increase in oil prices is more sustainable, they might shift to taking mass transportation, if available, driving hybrids or taking the other kind of actions that are necessary to reduce demand on a sustained basis,'' Murti, who is said to own two hybrid cars, said.
There have been wide-spread reports of Americans cutting back on their driving, shifting to mass transport for their daily commute, and dumping their SUVs for smaller cars or hybrids, but whether it is a sustained trend is still hard to say. Murti cited several reasons for the sustained run-up in oil prices. In the short term, these include further declines in US oil inventories announced on June 4, the announcement of a decline in Russian oil production in May, and recent comments that Mexico expects further meaningful declines in oil production over the rest of this year. Longer term spare capacity throughout the energy complex also seems very limited, whether for Opec crude oil, natural gas or refining, he added.
Oil smashes $135 a barrel in Asian trade
SINGAPORE: Oil smashed past $135 a barrel for the first time on Thursday, continuing its astonishing rise following unexpected drops in US crude and gasoline stocks in a tight market, dealers said.
Large institutional investors continued to pile money into oil, which is giving better returns than investments in stocks and bonds, further heating up prices, they said.
The Commonwealth Bank of Australia said in a market commentary that the "oil price also benefited from further US dollars weakness."
In Asian morning trade, New York's main oil futures contract, light sweet crude for July delivery, briefly rose to a high of $135.04 a barrel before easing to $134.30.
The benchmark futures contract had closed a whopping $4.10 higher at a record $133.17 on the New York Mercantile Exchange, and continued its upward spiral in after-hours electronic trade.
London's Brent crude contract for July was also busting records, rising to a high of $134.50 before pulling back to trade at $134.12, smashing its intraday peak of $133.34 set a day earlier.
"Currently, market psychology is trumping fundamentals," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.
"The psychology is that the oil market is tight. Even though there is no shortage, global oil demand continues to grow and supply growth is restrained," he added.
"Oil has performed better than equities and bonds. There is money looking for better returns and oil has offered better returns and continues to offer better returns."
The US Department of Energy's weekly snapshot of energy inventories, which unexpectedly showed declines, further galvanised the market.
The DoE report Wednesday showed US crude oil stocks fell in the week ended May 16, by 5.4 million barrels to 320.4 million barrels. Most analysts had expected a build of 300,000.
Gasoline inventories dropped by 800,000 barrels, to 209.4 million, confounding expectations of a gain of 250,000 barrels.
The news was particularly market-sensitive, coming days ahead of the US summer-holiday driving season that kicks off this weekend for the Memorial Day holiday on Monday.
Americans have already begun buying less gasoline as prices at the pump hit new highs. The change in driving habits is raising concerns about a slowdown in consumer spending, the main engine of the world's biggest economy.
Shum of Purvin and Gertz said the high oil prices could prompt some people to cut down on fuel consumption, but added that demand would still pick up seasonally.
The rapid surge in oil prices came as the US Federal Reserve slashed its 2008 growth forecast for the US economy, the world's biggest oil consumer.
The Fed on Wednesday slashed its forecasts to a range of 0.3 to 1.2 per cent, from its prior forecast of 1.3 to 2.0 per cent in January. The central bank cited higher oil prices as a key factor weighing on momentum.
Large institutional investors continued to pile money into oil, which is giving better returns than investments in stocks and bonds, further heating up prices, they said.
The Commonwealth Bank of Australia said in a market commentary that the "oil price also benefited from further US dollars weakness."
In Asian morning trade, New York's main oil futures contract, light sweet crude for July delivery, briefly rose to a high of $135.04 a barrel before easing to $134.30.
The benchmark futures contract had closed a whopping $4.10 higher at a record $133.17 on the New York Mercantile Exchange, and continued its upward spiral in after-hours electronic trade.
London's Brent crude contract for July was also busting records, rising to a high of $134.50 before pulling back to trade at $134.12, smashing its intraday peak of $133.34 set a day earlier.
"Currently, market psychology is trumping fundamentals," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.
"The psychology is that the oil market is tight. Even though there is no shortage, global oil demand continues to grow and supply growth is restrained," he added.
"Oil has performed better than equities and bonds. There is money looking for better returns and oil has offered better returns and continues to offer better returns."
The US Department of Energy's weekly snapshot of energy inventories, which unexpectedly showed declines, further galvanised the market.
The DoE report Wednesday showed US crude oil stocks fell in the week ended May 16, by 5.4 million barrels to 320.4 million barrels. Most analysts had expected a build of 300,000.
Gasoline inventories dropped by 800,000 barrels, to 209.4 million, confounding expectations of a gain of 250,000 barrels.
The news was particularly market-sensitive, coming days ahead of the US summer-holiday driving season that kicks off this weekend for the Memorial Day holiday on Monday.
Americans have already begun buying less gasoline as prices at the pump hit new highs. The change in driving habits is raising concerns about a slowdown in consumer spending, the main engine of the world's biggest economy.
Shum of Purvin and Gertz said the high oil prices could prompt some people to cut down on fuel consumption, but added that demand would still pick up seasonally.
The rapid surge in oil prices came as the US Federal Reserve slashed its 2008 growth forecast for the US economy, the world's biggest oil consumer.
The Fed on Wednesday slashed its forecasts to a range of 0.3 to 1.2 per cent, from its prior forecast of 1.3 to 2.0 per cent in January. The central bank cited higher oil prices as a key factor weighing on momentum.
International Business Machines Corp. posted first-quarter profit that topped analysts' estimates and said earnings this year
Crude oil and gasoline rose to records after the Energy Department reported unexpected declines in U.S. crude inventories and refinery operating rates.
Oil climbed to $115.21 a barrel in New York, the highest since futures began trading in 1983. Oil inventories fell 2.36 million barrels to 313.7 million in the week ended April 11, the department said yesterday. Refinery capacity was 81.4 percent, the lowest since October 2005 following hurricanes Katrina and Rita.
``Refiners are probably not ordering crude oil because they don't need it,'' said Phil Flynn, a senior trader at Alaron Trading Corp. in Chicago. ``This is a time of year when refineries are supposed to be focusing on gasoline production, but they have no incentive this year because demand is anemic and refinery margins are poor.''
Crude oil for May delivery rose as much as 28 cents in after-hours electronic trading on the New York Mercantile Exchange and was at $114.84 a barrel at 10:23 a.m. Sydney time. Yesterday, oil futures gained $1.14, or 1 percent, to settle at $114.93 a barrel, a record close.
Prices are up 4.4 percent this week and 82 percent from a year ago.
The median price of crude oil will be $92 a barrel this quarter, according to 30 analyst forecasts compiled by Bloomberg News. The median price for the entire year will be $91.71 a barrel, the estimates show.
Refinery Margins
Lower refinery margins, or crack spreads, reduced the incentive for refiners to process oil into products, including gasoline and diesel fuel. U.S. refineries ran at 81.4 percent of capacity last week, down 1.6 percentage points from the week before.
The margin for making a barrel of crude oil into one of gasoline was negative on March 17 for the first time since February 2005, according to closing futures prices. The spread rose as high as $7.804 a barrel yesterday compared with more than $25 a year ago.
Crude-oil stockpiles were forecast to rise 1.8 million barrels last week, according to the median of responses by 15 analysts surveyed by Bloomberg News.
Supplies at Cushing, Oklahoma, where New York-traded West Texas Intermediate oil is stored, rose 860,000 barrels to 18.4 million last week. Stockpiles on the West Coast fell 2.77 million barrels to 52.1 million, the report showed. The West Coast oil market is isolated from other parts of the U.S., making it difficult for supplies to move between it and other regions.
`Buy Gasoline'
``Refineries aren't buying crude oil and they certainly aren't using it to the extent they were expected to,'' said Tim Evans, an energy analyst at Citigroup Global Markets Inc. in New York. ``The decline was on the West Coast and there was a build at Cushing, which blunts some of the impact of this report.''
Gasoline inventories dropped 5.52 million barrels to 215.8 million barrels, the report showed. It was the fifth straight fall and the biggest decline since August. A 1.8 million-barrel decline was forecast in the Bloomberg News survey.
``The clear message of this data is buy gasoline,'' Evans said.
Gasoline for May delivery was up 0.46 cent to $2.9436 a gallon at 8:46 a.m. Sydney time. Earlier, it touched $2.9457, an intraday record for gasoline to be blended with ethanol, known as RBOB, which began trading in October 2005. Yesterday, it rose 5.8 cents, or 2 percent, to $2.939 a gallon, the highest-ever settlement price.
U.S. pump prices are following futures higher. Regular gasoline, averaged nationwide, rose 1.3 cents to a record $3.399 a gallon, AAA, the nation's largest motorist organization, said yesterday on its Web site
Oil Passes $111, Gasoline Hits Record on Unexpected Drop in U.S. Supplies
Crude oil rose above $111 a barrel in New York and gasoline surged to a record after a government report showed that U.S. supplies unexpectedly dropped.
Crude oil inventories fell 3.15 million barrels to 316 million last week, the Energy Department said. A 2.3-million- barrel gain was forecast, according to a Bloomberg News survey. Metals futures also rose as the dollar fell against the euro, and gasoline pump prices reached a record average $3.343 a gallon.
``It looks like this move will accelerate and prices will move toward $115,'' said Tom Bentz, a broker at BNP Paribas in New York. ``This is all part of the big uptrend, and where it stops nobody knows.''
Crude oil for May delivery rose $2.49, or 2.3 percent, to $110.99 a barrel at 11:54 a.m. on the New York Mercantile Exchange. Futures reached $111.43, the highest since March 17, when prices touched a record $111.80 a barrel.
Gasoline for May delivery climbed 3.86 cents, or 1.4 percent, to $2.789 a gallon. Futures reached $2.8228, an intraday record for gasoline to be blended with ethanol, known as RBOB, which began trading in October 2005.
U.S. pump prices are following futures higher. Regular gasoline, averaged nationwide, rose 1.2 cents to the record, AAA, the nation's largest motorist organization, said today on its Web site.
Refineries operated at 83 percent of capacity last week, the Energy Department report showed. Plants used 88.4 percent during the same week last year. Refiners operated at 82.2 percent in the week ended March 21, the lowest since October 2005, the department said.
`Supportive'
``The report is supportive across the board,'' said Tim Evans, an energy analyst at Citigroup Global Markets Inc. in New York. ``I'm surprised gasoline isn't up more because of the larger-than-expected drop in inventories.''
Supplies of gasoline and distillate fuel, including heating oil and diesel, also fell. Gasoline inventories dropped 3.44 million barrels to 221.3 million last week, the report showed. A 3-million-barrel decline was expected.
``Domestic demand isn't great but that's not important,'' said Antoine Halff, head of energy research at New York-based Newedge USA LLC. ``Global demand is still growing and that's what matters.''
Total implied U.S. fuel demand averaged 20.5 million barrels a day in the past four weeks, down 0.4 percent from a year earlier, according to the department. Consumption was down 2.2 percent from a year earlier in the four weeks ended March 21.
`Speculation'
``Speculation is the main reason driving up oil prices,'' Qatari Energy Minister Abdullah bin Hamad al-Attiyah said today in Beijing. ``OPEC so far doesn't have anything on the agenda for the informal meeting in Rome.''
The Organization of Petroleum Exporting Countries will hold its next formal policy-setting conference in September. Many OPEC ministers will hold informal discussions during a conference in Rome on April 20-22. The group's 13 members produce more than 40 percent of the world's oil.
``OPEC has lost control of the oil market to institutional investors who are looking for a sanctuary from the weak dollar and slowing economy,'' said Richard Chimblo, manager of global business development at Calgary-based Genoil Inc. ``I believe the bubble will break and prices are going to fall to the $85 area before the winter heating season.''
Oil's 80 percent gain during the past year is the second biggest among 19 commodities on the Reuters/Jefferies CRB Index, trailing only wheat, which doubled. Rising global demand for raw materials and a weakening dollar have led to record prices this year for raw materials including corn, rice, gold and platinum.
Brent crude for May settlement rose $1.89, or 1.8 percent, to $108.23 a barrel on London's ICE Futures Europe exchange. Futures reached a record $108.77 a barrel in intraday trading.
Crude oil inventories fell 3.15 million barrels to 316 million last week, the Energy Department said. A 2.3-million- barrel gain was forecast, according to a Bloomberg News survey. Metals futures also rose as the dollar fell against the euro, and gasoline pump prices reached a record average $3.343 a gallon.
``It looks like this move will accelerate and prices will move toward $115,'' said Tom Bentz, a broker at BNP Paribas in New York. ``This is all part of the big uptrend, and where it stops nobody knows.''
Crude oil for May delivery rose $2.49, or 2.3 percent, to $110.99 a barrel at 11:54 a.m. on the New York Mercantile Exchange. Futures reached $111.43, the highest since March 17, when prices touched a record $111.80 a barrel.
Gasoline for May delivery climbed 3.86 cents, or 1.4 percent, to $2.789 a gallon. Futures reached $2.8228, an intraday record for gasoline to be blended with ethanol, known as RBOB, which began trading in October 2005.
U.S. pump prices are following futures higher. Regular gasoline, averaged nationwide, rose 1.2 cents to the record, AAA, the nation's largest motorist organization, said today on its Web site.
Refineries operated at 83 percent of capacity last week, the Energy Department report showed. Plants used 88.4 percent during the same week last year. Refiners operated at 82.2 percent in the week ended March 21, the lowest since October 2005, the department said.
`Supportive'
``The report is supportive across the board,'' said Tim Evans, an energy analyst at Citigroup Global Markets Inc. in New York. ``I'm surprised gasoline isn't up more because of the larger-than-expected drop in inventories.''
Supplies of gasoline and distillate fuel, including heating oil and diesel, also fell. Gasoline inventories dropped 3.44 million barrels to 221.3 million last week, the report showed. A 3-million-barrel decline was expected.
``Domestic demand isn't great but that's not important,'' said Antoine Halff, head of energy research at New York-based Newedge USA LLC. ``Global demand is still growing and that's what matters.''
Total implied U.S. fuel demand averaged 20.5 million barrels a day in the past four weeks, down 0.4 percent from a year earlier, according to the department. Consumption was down 2.2 percent from a year earlier in the four weeks ended March 21.
`Speculation'
``Speculation is the main reason driving up oil prices,'' Qatari Energy Minister Abdullah bin Hamad al-Attiyah said today in Beijing. ``OPEC so far doesn't have anything on the agenda for the informal meeting in Rome.''
The Organization of Petroleum Exporting Countries will hold its next formal policy-setting conference in September. Many OPEC ministers will hold informal discussions during a conference in Rome on April 20-22. The group's 13 members produce more than 40 percent of the world's oil.
``OPEC has lost control of the oil market to institutional investors who are looking for a sanctuary from the weak dollar and slowing economy,'' said Richard Chimblo, manager of global business development at Calgary-based Genoil Inc. ``I believe the bubble will break and prices are going to fall to the $85 area before the winter heating season.''
Oil's 80 percent gain during the past year is the second biggest among 19 commodities on the Reuters/Jefferies CRB Index, trailing only wheat, which doubled. Rising global demand for raw materials and a weakening dollar have led to record prices this year for raw materials including corn, rice, gold and platinum.
Brent crude for May settlement rose $1.89, or 1.8 percent, to $108.23 a barrel on London's ICE Futures Europe exchange. Futures reached a record $108.77 a barrel in intraday trading.
India bans all edible oil exports for a year
NEW DELHI: India has banned exports of all cooking oils for a year to improve domestic supplies, a commerce ministry statement said, adding the curbs came into effect on Monday.
India exports some cooking oils like groundnut in small quantities, and is one of the world's leading edible oil buyers. The statement dated March 17 was issued by the Directorate General of Foreign Trade, an arm of the commerce ministry.
India exports some cooking oils like groundnut in small quantities, and is one of the world's leading edible oil buyers. The statement dated March 17 was issued by the Directorate General of Foreign Trade, an arm of the commerce ministry.
Fed rate cut could propel gold price to new heights
MUMBAI: With the US Federal Reserve widely expected to effect a rate cut next week, analysts say bullion prices could scale new peaks.
"We can expect the Fed to go in for at least a 0.50-0.75 per cent rate cut at its next Tuesday FOMC meeting. A rate cut of such a magnitude will push the USD further down, thereby leading to higher bullion prices," Karvy Comtrade said in its research report here.
"We expect bullion prices to trade on the higher side," its analysts said.
Gold price already crossed Rs 13,000 per 10 gram domestically and $1,005 per ounce in international markets last week.
Gold futures also traded above Rs 13,000 at the Multi-Commodity Exchange of India (MCX) from overnight gains in the US. Gold futures soared Rs 56/10gm and rose to Rs 13,036 on Saturday.
Gold August 08 contract was up 0.69 per cent at Rs 13,008 per 10 grams and October 08 contract by 0.68 per cent at Rs 13,054 per 10 grams on the MCX.
In the bullion segment, gold contracts clocked a turnover of Rs 33,928.10 crore, while open interest of all gold contract was 13,297 kgs and total volume 2,66,807 kgs on MCX during the last week.
In the US market, gold futures extended historic highs as the metal functioned as a safe haven and alternative currency while the US dollar continued to weaken and fresh credit market turmoil emerged.
Most-active April gold rose $5.70 to settle at $999.50 a troy ounce after extending its contract high to $1,009 on the Comex division of the New York Mercantile Exchange.
The major factors contributing to the rally in bullion prices were record high crude prices and a continuously depreciating dollar.
The greenback continued to trade lower as the economic outlook of the US continues to decline. This view has been reinforced by the recent spate of poor economic data including advance retail sales, analysts said.
Retail sales, which constitute the mainstay of the US economy dropped to -0.6 per cent from the previous level of 0.3 per cent.
The Import price index did not increase as much as expected, the main reason being the fact that the US did not import much crude products in the prior month. Hence this data may give some relief to the Fed in terms of the inflationary pressures that were recently in the picture again, they said.
"We can expect the Fed to go in for at least a 0.50-0.75 per cent rate cut at its next Tuesday FOMC meeting. A rate cut of such a magnitude will push the USD further down, thereby leading to higher bullion prices," Karvy Comtrade said in its research report here.
"We expect bullion prices to trade on the higher side," its analysts said.
Gold price already crossed Rs 13,000 per 10 gram domestically and $1,005 per ounce in international markets last week.
Gold futures also traded above Rs 13,000 at the Multi-Commodity Exchange of India (MCX) from overnight gains in the US. Gold futures soared Rs 56/10gm and rose to Rs 13,036 on Saturday.
Gold August 08 contract was up 0.69 per cent at Rs 13,008 per 10 grams and October 08 contract by 0.68 per cent at Rs 13,054 per 10 grams on the MCX.
In the bullion segment, gold contracts clocked a turnover of Rs 33,928.10 crore, while open interest of all gold contract was 13,297 kgs and total volume 2,66,807 kgs on MCX during the last week.
In the US market, gold futures extended historic highs as the metal functioned as a safe haven and alternative currency while the US dollar continued to weaken and fresh credit market turmoil emerged.
Most-active April gold rose $5.70 to settle at $999.50 a troy ounce after extending its contract high to $1,009 on the Comex division of the New York Mercantile Exchange.
The major factors contributing to the rally in bullion prices were record high crude prices and a continuously depreciating dollar.
The greenback continued to trade lower as the economic outlook of the US continues to decline. This view has been reinforced by the recent spate of poor economic data including advance retail sales, analysts said.
Retail sales, which constitute the mainstay of the US economy dropped to -0.6 per cent from the previous level of 0.3 per cent.
The Import price index did not increase as much as expected, the main reason being the fact that the US did not import much crude products in the prior month. Hence this data may give some relief to the Fed in terms of the inflationary pressures that were recently in the picture again, they said.
Crude Oil goes up further
Price cross above $108 for the first time as dollar remains under pressure
Crude prices shot up once again today, Monday, 10 March, 2008. Prices rose after the dollar remained under pressure against its rival currencies. Since last week, prices have been consistently trading above $100 after the dollar dropped to three-year lows against the yen as a sell-off on Wall Street sapped investor appetite for risk. Energy prices have surged over the past year as the dollar plunged, prompting investors to seek a hedge against inflation.
Crude-oil futures for light sweet crude for April delivery today closed at $107.9/barrel (higher by $2.75/barrel or 2.6%) on the New York Mercantile Exchange. They earlier surged to $108.21 a barrel, the highest since trading began in 1983. Last week, crude prices ended higher by $3.31 (3.3%).
In the currency market today, the dollar remained under pressure, giving up earlier ground against most rivals, particularly the yen, as U.S. stocks withered. The dollar index, which measures the greenback against a basket of six major currencies, was at 72.920, down about 0.1%.
Brent crude oil for April settlement today rose $1.78 (1.7%) to $104.16 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas closes higher erasing earlier losses
Natural gas in New York advanced, erasing an earlier decline, after crude oil rose to a record above $108 a barrel. Natural gas for April delivery rose 25.5 cents (2.6%) to settle at $10.024 per million British thermal units.
Against this backdrop, April reformulated gasoline rose 2.06 cent to $2.7149 a gallon. April heating oil surged 2.64 cent to $2.9734 a gallon.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
At the MCX, crude oil for March delivery closed at Rs 4,346/barrel, higher by Rs 84(1.9%) against previous day’s close. Natural gas for March delivery closed at Rs 403.3/mmtbu, higher by Rs 5.6/mmtbu (1.4%).
Subscribe to:
Posts (Atom)
Search
Powered byIP2Location.com
The Link Exchange - Your ultimate resource for link exchange!
Directory
6686 links to your site!
Blogging Fusion Blog Directory
Blog Directory
Minyx v2.0 template es un theme creado por Spiga.