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Cairn India falls as crude price dips-news04062012


Shares of Cairn India plunged nearly 5%, touching the monthly low to Rs301.10, as crude futures fell for the fifth straight day today, (June 04, 2012), its lowest level in almost eight months on signs of an economic slowdown in the US and China.


Crude oil futures for July 2012 delivery were down $1.14 at $82.09 a barrel in Asian electronic trading today, (June 04, 2012), extending last week's 8.4% decline to the lowest close since (October 07, 2011). The contract had tumbled $3.30 a barrel, or 3.81% to settle at $83.23 a barrel on the New York Mercantile Exchange on Friday, (June 01, 2012), its biggest weekly drop since September 23, 2011. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms such as Cairn India.

US unemployment rose to 8.2% in May and payrolls increased less than the most-pessimistic forecasts. Meanwhile, the China's purchasing managers' index ( PMI) fell to 55.2 in May from 56.1 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in a statement on Sunday, (June 03, 2012) in Beijing. A reading above 50 indicates expansion.
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