Oil.....
Crude oil losses continued in tandem with negative movement in the Asia equities following the loss of momentum in the Chinese economy and the worst sell-off in five months on Wall Street.
The Hong Kong and Shanghai stock markets fell after a string of brokerages cut their economic outlook for China, while Japanese shares also suffered from further yen appreciation as investors pulled away from risky assets.
Oil futures settled with a loss of nearly 3% on Monday, with weaker-than-anticipated quarterly economic growth and monthly industrial production numbers from China adding to festering worries about global demand for the commodity.
May crude oil futures are trading down $1.70 at $ 87.01 per barrel on the New York Mercantile Exchange. Yesterday, it fell $2.58, or 2.8%, to settle at $88.71 a barrel after a low at $87.86.
Oil’s decline on Monday was also part of a broad commodity selloff, with gold dropping more than $140 an ounce.
China said gross domestic product rose 7.7% in the January-March quarter, slower than growth of 7.9% in the fourth quarter. The report of slower activity for the major energy consumer came after the International Energy Agency and the Organization of the Petroleum Exporting Countries reduced each of their own global oil-demand estimates for the year slightly. Oil futures fell by 1.5% last week.
Among the data from China on Monday, March industrial production increased 8.9% from the year-earlier period. The growth was the weakest in more than a year, slowing from a 9.9% average rise for the January-February period.
MCX April crude oil futures may open today’s session near Rs 4800 levels with support around Rs 4700 and Rs 4600 levels.
Source by Commodity Insights
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