International oil futures dipped below the $40 a barrel mark as the Asian equity markets dropped sharply in thin trading as investors rushed to take profits ahead of the holidays. Oil prices continued to tumble despite the huge output cuts by the OPEC member nations.
Among Asian bourses, Hong Kong's Hang Seng index fell by nearly 3.75% in early trade, China's Shanghai Composite was off 2.9% at 1,929.28 by late morning, Bombay Stock Exchange benchmark Sensex was down 188.36 points at 9,740.62. Japanese markets were closed for the Emperor's Birthday holiday.
The weak energy demand stemming from the global economic slowdown continued to plague the oil market. Another factor affecting prices is the huge build in US stockpiles. Oil reserves in Cushing, Oklahoma, where light, sweet crude oil is stored, are at maximum capacity. Incapable of parking more oil there at the end of Friday's session, investors were forced to sell off, they added. The falling import demand from China, Japan and other major users is also playing a crucial role in depressing the oil prices.
NYMEX Light Sweet February oil traded in a tad range of $ 39.88- 39.05 per barrel. The January contract expired on Friday after diving in intraday trade as low as $32.40 per barrel -- which was the lowest level since February 9, 2004. MCX Oil prices were also stuck below the Rs 2000 mark and tumbled to as low as Rs 1944 per barrel. It may trade in the range of 2025-1920 levels.
Among Asian bourses, Hong Kong's Hang Seng index fell by nearly 3.75% in early trade, China's Shanghai Composite was off 2.9% at 1,929.28 by late morning, Bombay Stock Exchange benchmark Sensex was down 188.36 points at 9,740.62. Japanese markets were closed for the Emperor's Birthday holiday.
The weak energy demand stemming from the global economic slowdown continued to plague the oil market. Another factor affecting prices is the huge build in US stockpiles. Oil reserves in Cushing, Oklahoma, where light, sweet crude oil is stored, are at maximum capacity. Incapable of parking more oil there at the end of Friday's session, investors were forced to sell off, they added. The falling import demand from China, Japan and other major users is also playing a crucial role in depressing the oil prices.
NYMEX Light Sweet February oil traded in a tad range of $ 39.88- 39.05 per barrel. The January contract expired on Friday after diving in intraday trade as low as $32.40 per barrel -- which was the lowest level since February 9, 2004. MCX Oil prices were also stuck below the Rs 2000 mark and tumbled to as low as Rs 1944 per barrel. It may trade in the range of 2025-1920 levels.
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