Crude may trade higher today: Angel Commodities

Angel Commodities has come out with its report on international commodities. According to the research firm Crude oil prices are expected to trade higher today on the back of rising supply concerns from Iran.

• European stocks trade lower on Euro Zone growth concerns.
• India's annual CPI index stands at 7.65 percent in January.
• Crude oil prices up on supply concerns from Iran.

European markets trade lower today on rising concerns that Greece debt crisis will still persists despite the second bailout of 130 billion Euros. The major concerns are that the austerity measures forced on Greece will deteriorate its already weak economy thus making it harder to repay its debts. Asian markets also ended in red zone and Dow Jones futures are trading in the green territory.

India's annual consumer price index (CPI) stood at 7.65 percent in January which was higher than wholesale price index (WPI) of 6.55 percent during the same period.

Spot gold prices traded higher today on the back of weakness in the US dollar, as a weaker dollar made dollar-denominated commodities look cheaper for the holders of the other currencies. The yellow metal hit a high of $1742/oz and was hovering around $1738/bbl till 4.30 pm IST. MCX Gold April
contract witnessed gains of around 0.3 percent and touched an intra-day high of Rs28,266/10 gms till 4.30 pm IST today.

Silver prices gained around 0.4 percent today, taking cues from rise in gold prices coupled with dollar weakness. Silver being an industrial metal also took cues from upside in base metals. The white metal touched an intra-day high of $33.84/oz and was trading at $33.701/oz trill 4.30 pm IST today. On the MCX, Silver March contract rose around 0.3 percent and hit a high of Rs56,666/kg till 4.30 pm IST today.

Copper rose more than 1 percent on the LME today on the back of a weaker dollar. On the MCX, the red metal rose around 0.9 percent and touched a high of Rs.413.30/kg till 4.30 pm IST today.

Nymex crude oil prices increased by 1.3 percent today on the back of European finance ministers agreeing for the second bailout package for Greece coupled with the supply concerns from Iran. Additionally, a weaker dollar also acted as a positive factor for the commodity. Crude oil touched an intra-day high of $105.06/bbl and was hovering around $104.55/bbl till 4:30pm IST today.

Outlook
We expect markets to trade on a mixed note today on account of uncertainty with respect to Greece's debt worries. Taking cues from this, we expect base metals and precious metals to trade on a mixed note today.

Crude oil prices are expected to trade higher today on the back of rising supply concerns from Iran. However, any negative news or development from the Euro Zone front may lead to downside in oil prices today.

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To read the full report click on the attachment