Expect Crude oil prices to trade lower today: Angel

• European markets up on Greek bailout vote.
• Base metals trade higher on account of a weaker dollar.
• US crude oil inventories are expected to increase by 1.4 mb – API.

European stocks traded higher in today’s trading session as Germany parliament voted to approve a second package of financial support for Greece. Asian markets also ended in positive territory and US futures are trading in the green zone.

Spot gold prices rose around 0.6 percent in today’s trading session on the back of weakness in the US dollar. Additionally, upbeat sentiments in the global markets also acted as a positive factor for prices.

The yellow metal touched an intra-day high of $1777/oz and was hovering around $1775/oz till 4.30 pm IST today. On the MCX, Gold April contract traded on a flat note and touched an intra-day high of Rs28,766/10 gm till 4.30 pm IST today.

Rise in gold prices coupled with weakness in the US dollar helped spot silver prices to trade higher by 0.7 percent today. Silver being an industrial metal also took cues from upside in base metals too. The white metal hit an intra-day high of $35.70/oz and was trading at $35.61/oz till 4.30 pm IST. Om the MCX silver March contract touched an intra-day high of Rs 58,800/kg and was hovering around 58,735/kg till 4.30 pm IST today.

The base metals complex traded higher on the LME in today’s trading session on account of a weaker dollar coupled with revival in the market sentiments after Germany’s parliament voted to approve a second package of financial support for Greece.

Nymex crude oil prices declined by 0.2 percent today on account of expected rise in US crude oil inventories. However, sharp downside in prices was restricted on account of a weaker dollar. Oil prices touched an intra-day low of $107.84/bbl and was hovering around $108.56/bbl till 4:30pm IST today. On the MCX, crude oil prices declined by 0.7 percent after touching an intra-day low of Rs5337/bbl and were hovering around Rs5347/bbl till 4:30pm IST.

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to increase by 1.4 million barrels for the week ending on 24th February 2012.

Outlook
Germany’s parliament has voted to approve a second package of financial support for Greece and market sentiments are expected to remain positive today. On the back of this, the US dollar is expected to remain weak and gold is expected to trade with a positive bias today.

We expect base metals to trade higher on account of a weaker dollar and revival in the global market sentiments.

We expect crude oil prices to trade lower today, on account of expected rise in US crude oil inventories. However, supply worries from Iran may cushion sharp fall in oil prices.

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