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Jun 22, 2012, 06.21 PM IST | Source: Moneycontrol.com

Crude may trade on a range bound note today: Angel

Angel Commodities has come out with its report on energy. According to the research firm, crude oil prices are expected to trade on a range bound note on the back of global economic slowdown coupled with strength in the DX.

Angel Commodities has come out with its report on energy. According to the research firm, crude oil prices are expected to trade on a range bound note on the back of global economic slowdown coupled with strength in the DX.

Crude Oil: Nymex crude oil prices declined around 4.5 percent yesterday taking cues from signs of global economic slowdown which will curb the demand for the fuel. Additionally, a stronger DX also added downside pressure on crude oil prices. Crude oil prices slipped below the $78/bbl mark and closed at $78.20/bbl in yesterday’s trading session. On the domestic bourses, prices declined around 3 percent as depreciation in the Rupee prevented further fall in crude oil prices and closed at Rs.4,517/bbl after touching an intra-day low of Rs.4,502/bbl on Thursday.

Natural Gas: Nymex natural gas prices gained around 2.5 percent yesterday on account of less than expected rise in US natural gas inventories. However, further upside in prices was capped on the back of strength in the DX. Gas prices touched an intra-day high of $2.633/mmbtu and closed at $2.576/mmbtu on Thursday. On the MCX, June Natural Gas contract rose by 2.2 percent and closed at Rs.146.70/mmbtu after touching an intra-day high of Rs.149.9/mmbtu in yesterday’s trading session.

EIA Inventories Data: US Energy Information Administration (EIA) released its weekly inventories yesterday and US natural gas inventory has increased less than expected by 62 billion cubic feet (bcf) which stood at 3.006 trillion cubic feet for the week ending on 15th June 2012.

Outlook: In today’s session, we expect crude oil prices to trade on a range bound note on the back of global economic slowdown coupled with strength in the DX. While on the other hand, storm has started to form in the Gulf of Mexico which will support upside in the crude oil prices.

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