Crude oil may trade rangebound for the day: Karvy

Karvy Commodities Broking has come out with its report on Crude Oil and Natural Gas. The research firm says mild weather condition along with weaker manufacturing activities may not create higher fuel demand. Actual inventory report may result a bearish impact on oil prices. Technically prices are likely to trade in a limited range for the day.
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Dec 04, 2012, 12.10 PM | Source: Moneycontrol.com

Crude oil may trade rangebound for the day: Karvy

Karvy Commodities Broking has come out with its report on Crude Oil and Natural Gas. The research firm says mild weather condition along with weaker manufacturing activities may not create higher fuel demand. Actual inventory report may result a bearish impact on oil prices. Technically prices are likely to trade in a limited range for the day.

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Crude oil may trade rangebound for the day: Karvy

Karvy Commodities Broking has come out with its report on Crude Oil and Natural Gas. The research firm says mild weather condition along with weaker manufacturing activities may not create higher fuel demand. Actual inventory report may result a bearish impact on oil prices. Technically prices are likely to trade in a limited range for the day.

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, Karvy Commodities Broking |

Karvy Commodities Broking has come out with its report on Crude Oil and Natural Gas. The research firm says mild weather condition along with weaker manufacturing activities may not create higher fuel demand. Actual inventory report may result a bearish impact on oil prices. Technically prices are likely to trade in a limited range for the day.

Crude Oil: Today morning oil prices have come under pressure driven by resumed talk of Fiscal cliff and concern of lower demand in US. On yesterday, Republicans have lettered Obama that they seek $800 billion in tax revenue in the next decade. It would reduce entitlement program costs including raising the Medicare eligibility age, and cut $300 billion in discretionary spending. Thus, yesterday weak manufacturing report and concern of Fiscal cliff have weighed on current financial market where dollar has been strengthened. Going ahead, we expect oil prices to remain under pressure as the above factors will remain on the market ahead of European leaders meet today in Brussels.

Improvement in US vehicle sales may limit fall , whereas Euro-zone PPI number is expected to decline which will further weigh on shared currency extending loss on oil prices. As per US Energy department, crude oil stocks are expected to decline whereas gasoline and distillates inventory to pile up. Hence, mild weather condition along with weaker manufacturing activities may not create higher fuel demand. Thus, actual inventory report may result a bearish impact on oil prices.

Action Point: However, technically prices are likely to trade in a limited range for the day.

Natural Gas: During early Asian session, gas prices are trading above $3.6/mmbtu with gain of more than 0.30% in international market. As yesterday’s report Woodside Petroleum Ltd.’s purchase of a stake in Israel’s largest natural gas deposit takes Asia- Pacific oil and gas acquisitions to a record $99 billion this year, tying the U.S. for the first time. Australia’s second-largest petroleum producer yesterday said it will pay partners including Noble Energy Inc. an initial $696 million and as much as $2.3 billion for part of the Leviathan field. Besides, US have also reported about higher vehicle sales in the last month which may support gas prices further in today’s session. However, strong dollar due to concern of Fiscal cliff may limit gains.

Action Point: Technically, we may suggest remaining on buying side for the day.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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