Crude Oil Updates

MCX Crude oil futures maintained a positive bias as a recovery in global prices supported the counter. The commodity has been buffeted by worries over global economic growth and traders have been unable to carve out a clear-cut direction amid Middle East supply worries. The prices neared $92 per barrel in London amid a positive undertone in world equities and currently trade at $91.94, up 8 cents per barrel on the day. 

New European passenger car registrations continued their downward trend, falling for the twelfth straight month in September. Demand for new cars was down 10.8%, amounting to 1,099,264 units, compared with September 2011. Nine months into the year, the downturn reached 7.6%, with a total of 9,368,327 new cars registered in the EU. 

The advanced economies were still growing only modestly or contracting, although financial market conditions had improved over the past month following additional monetary policy measures and further progress in addressing the banking and fiscal problems in Europe. Growth in East Asia, including China, had slowed a little further, according to the minutes of the latest interest rate meeting of the Reserve Bank of Australia (RBA) released today. 

Last week, the International Energy Agency (IEA) cut oil demand growth forecast for the current year yet again amid weak economic scenario around the world. In its monthly oil market report the IEA revised its expectations of global oil demand growth to 700,000 barrels a day this year. However, the agency kept its 2013 demand growth forecast unchanged at 800,000 barrels a day. The sluggish oil demand was met last month by a decline in supply from the Organization of Petroleum Exporting Countries, which fell to an eight-month low in September, the IEA said.

Meanwhile, the Euro broke above 1.3000 levels against the US dollar, broadly maintaining a bounce from its two-week lows on media reports that Spain is ready to make a formal request for aid, allowing the European Central Bank to buy its sovereign debt, but is delaying an announcement due to concern about the effect on other euro-zone members. The MCX Crude oil futures are quoting at Rs 4866, up Rs 34 per barrel on the day with 9.46% increase in open interest.