Weak US demand cools market
MARKET REVIEW: Domestic/ CRUDE
| Moreover, with latest US data showing a comfortable inventory position, international prices of crude oil and its derivatives are expected to start moving down in the coming days. |
| However, the oil market has not reacted much to the capture of Saddam Hussain. |
| The capture of Hussain was expected to lead to a fall if not the end of violence against coalition troops and their allies in Iraq, while the market expected increased supply of crude oil from that country. |
| But subsequent events point to a far-from-peaceful atmosphere in that country and no rise in oil output. |
| The continuing higher international prices of crude have already had its impact on the domestic prices of petrol and diesel which were raised by around Re 1 litre each on December 15-16. |
| Public sector oil marketing companies have been watching the global trend to decide on future revisions in the domestic prices of these two auto fuels on December 31. |
| The international benchmark Brent (dated) crude, which was hovering at $ 30.81 a barrel on December 17, moved up to $ 30.99 a barrel on December 19, but moved down to $ 29.26 a barrel on December 23. |
| Jet fuel (Singapore), which was being quoted at $ 37.98 a barrel on December 17, moved up to $ 38.68 a barrel on December 19, and touched $ 37.08 a barrel on December 23. |
| Prices of gas oil (Singapore) with 0.5 per cent sulphur, which were ruling at $ 35.85 a barrel on December 17, touched $ 37.13 a barrel on December 19, and moved down to $ 35.88 a barrel on December 23. |
| Naphtha (Singapore), which was being quoted at $ 35.13 a barrel on December 17, touched $ 34.30 a barrel on December 19, and softened further to $ 34.10 a barrel on December 23. |