OIL TUMBLES ON PROFIT BOOKING
Date: 20/3/2012
Crude oil futures tumbled below $ 108 a barrel as traders booked profits in Asia today after it surged to highest levels in 2 weeks yesterday on positive global economic outlook and weak US dollar.
WTI light sweet crude futures are trading down 46 cents at $ 107.63 per barrel after ending yesterday's session with the gains of $1.03, or 1%, at $108.09 a barrel on the New York Mercantile Exchange. That was oil's highest settlement since March 1. Oil has gained momentum after a lull last week, when it notched a weekly loss of 0.3% despite steep gains on Friday.
A steady stream of data pointing to a recovery in the US economy and massive liquidity injections from major central banks have combined to drive a rally in share markets since late last year. The S&P 500 has risen nearly 12% so far in 2012 and the MSCI Asia ex-Japan is up more than 13%.
China raised retail gasoline and diesel prices for the second time this year, by 6.4% and 7% respectively, to ease losses faced by the nation's refiners in view of rising global crude-oil prices and a decline in domestic consumer price inflation.
The National Development and Reform Commission said Monday it would increase the prices on both gas and diesel by 600 yuan ($94.80), to 9,980 yuan per ton of gas and 9,130 yuan a ton of diesel. Nymex crude-oil prices have risen 9.1% so far in 2012.
MCX benchmark April crude may start today's session below Rs 5440 levels and may tumble towards Rs 5415 and Rs 5380 levels. The March contract expired yesterday.
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