Expect Crude to trade on a positive note: Angel Commodities

Crude Oil
Nymex crude oil prices declined around 0.4 percent yesterday taking cues from expectations that Euro Zone debt crisis will worsen further and curb demand for the fuel coupled with strength in the DX. However, positive global market sentiments along with tensions in Middle East restricted sharp fall in crude oil prices. Crude oil prices touched a low of $89.33/bbl and closed at $89.80/bbl in the yesterday’s trading session. On the MCX, prices declined by 0.5 percent and closed at Rs.4,978/bbl after touching a low of Rs.89.78/bbl on Monday.

API Inventories Forecast
The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to decline by 1.6 million barrels for the week ending on 27th July 2012. Gasoline stocks are expected to gain by 0.5 million barrels and distillate inventories are also expected to rise by 1.5 million barrels for the same week.

Outlook
We expect crude oil prices to trade on a positive note on the back of positive global market sentiments ahead of Federal Reserve policy decisions tomorrow coupled with expectations of decline in US crude oil inventories. But sharp upside in prices will be capped on account of strength in the DX. However, depreciation in the Indian Rupee will act as a supportive factor on the crude prices on the MCX.

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.