Oil rose for a second day on Wednesday, after an industry group reported U.S. crude stockpiles dropped for the second week in a row and the dollar declined. Oil has climbed 34 percent this year, tracking global equity markets on optimism that an economic recovery will spur demand for fuel. Additional support for crude prices came from the dollar, which fell to the lowest level against the euro since March, bolstering demand for commodities as a hedge against inflation.
Crude oil fell on Tuesday, snapping four days of gains, on concern a U.S. government report will show stockpiles climbed from the highest level since September 1990. Crude oil for June delivery declined as much as 77 cents, or 1.4 per cent, to $53.70 a barrel in electronic trading on the New York Mercantile Exchange. Oil is up 21 per cent this year.
Oil prices vaulted 9 per cent in NY Thursday, in tandem with a powerful stocks rally, as investors cheered G20 agreements to combat the global downturn and an easing of US accounting rules. On Friday, oil prices settled above $52 a barrel, slightly lower on the day after a report that US unemployment in March soared to a 25-year high. But optimism that the economy will soon turn around curtailed losses.
ONGC ran into trouble for carrying out directions from the government to keep fuel prices low. After investment Goldman Sachs put up doubts over corporate governance in the flagship explorer, the company lost Rs 2,700 crore in market value as its shares tumbled 2% on the Bombay Stock Exchange. For full story, click here
Nigeria’s government said that it will sell the nation’s four oil refineries to raise funds as falling crude prices widen the country’s budget deficit. For full story, click here
As crude prices revolve around four-year lows, the Indian government may look at cutting diesel prices further that will help cool inflation. For more information, click here
The government of India may impose a cap on the revenues of oil producing companies like ONGC, OIL, Reliance Industries and Cairn. For full news, click here
Indian Govt, to cut the nation’s spiraling oil import bill, intends to make it compulsory to dope petrol and diesel with 20 percent bio-diesel by 2017. For more news, click here
Wednesday, May 13, 2009