Weekly MCX Commodity Report By Advisory

CRUDE OIL UPDATES:-

The benchmark Light Sweet Crude Oil for November delivery on NYMEX settled at $ 91.86 per barrel on Friday 12 October 2012, up 2.2% in the week. The reports of rise in Crude oil supplies and slash of demand forecasts by Energy Information Administration brought some profit booking in Crude in the weekend. Crude Oil futures jumped after positive European sentiments pushed the prices forward.

The political tensions in Turkey and Syria continued to support the prices while news of OPEC production falling to 31.17 million barrels in September added as a catalyst. The production declined by 510000 barrels on account of sanctions on Iran that reduced the exports of Oil.

Rise in industrial production of Europe was helpful in underpinning the Crude Oil futures. The International Energy Agency slashed its 2012 and 2013 estimate of oil demand by 100000 barrels a day. The IEA estimates global oil demand of 89.7 million barrels a day in 2012 and 90.5 million barrels a day for 2013. EIA weekly Crude oil report showed that the US CrudeOil inventories moved up by 1.70 million barrels to 366.4 million barrels.

Crude oil futures rose on Middle East worries and a drop in OPEC production even as the International Energy Agency (IEA) cut its oil demand forecast. The commodity remained well bid above $92 per barrel in London trades amid mixed movement in equities. OPEC production fell 510,000 barrels a day to 31.17 million last month as Iranian sanctions reduced exports pressuring oil higher. Political tensions between Turkey and Syria are adding to the bullish fervor. WTI futures are placed at $92.15, up 8 cents per barrel on the day.