Crude oil may trade lower today, says Angel Commodities

Crude Oil: Nymex crude oil prices gained by more than 6 percent in last week on the back of ease in European debt crisis coupled with weakness in the DX. Additionally, European Union (EU) oil embargo on imports of Iranian crude oil along with upbeat global market sentiment helped upside in the prices. Crude oil prices touched a high of $85.34/bbl and closed at $84.96/bbl in last trading session of the week. On the domestic bourses, increased by 1.3 percent and closed at Rs.4,662/bbl on Friday after touching a high of Rs.4,673/bbl during the week.

Natural Gas: Nymex natural gas prices gained by more than 6.5 percent in last week on account of expectations of rise in demand for the summer season for cooling purposes coupled with weakness in the DX. However, further upside in prices was capped on account of more than expected increase in US natural gas inventories during the week. Gas prices touched a high of $2.975/mmbtu and closed at $2.819/mmbtu in last trading session. On the MCX, July Natural Gas prices increased by more than 2 percent and closed at Rs.154.50/mmbtu on Friday. However, further upside in the gas prices was restricted on account of appreciation in the Indian Rupee.

Outlook: In today’s session, we expect crude oil prices to trade lower on the account of long liquidation by the market participants after sharp rise in the crude oil prices. Additionally, a stronger DX coupled with expectations of rise in European unemployment rate will also exert further downside pressure on prices. Appreciation in the Indian Rupee will also add further pressure on crude oil prices on MCX.

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