Expect Crude to trade with a sideways bias today: Angel

Angel Commodities has come out with its report on international commodities. According to the research firm crude oil prices are expected to trade with a sideways bias today, taking mixed cues from mixed sentiments in the markets, a stronger dollar and supply concerns from Iran.

• European stocks down on weak economic data from the Euro Zone.
• US crude oil inventories expected to increase by 1.5 mb - API.
• Nickel - worst performer amongst the base metals pack today.

European stocks declined in today's trading session on the back of unfavorable service and manufacturing Purchasing Managers' Index (PMI) data from the Euro Zone front. Additionally, rising uncertainty over Greece growth concerns also acted as a negative factor. Asian markets ended in a positive zone today and Dow Jones futures are trading on a flat note.

Spot gold prices declined around 0.3 percent today on account of a stronger dollar. The yellow metal touched an intra-day low of $1750/oz and was trading at the level of $1753/oz till 4:30pm IST today. However, depreciation in the Indian Rupee led to witness gains on the domestic bourses.

Taking cues from fall in gold prices and downside in base metals, spot silver prices declined by 0.9 percent till 4:30pm IST today. Additionally, a stronger dollar also led to further downside in silver prices. The white metal touched an intra-day low of $33.99/oz and was hovering around $34.05/oz till 4:30pm IST.

Except aluminium, all other base metals came under pressure on the LME today mainly on the back of a stronger dollar coupled with choppy sentiments in the markets due to rising uncertainty over Greece debt crisis. Nickel is the worst performer of the day, as the metal prices dropped more than 1 percent on the LME and around 0.4 percent on the MCX till 4.30 pm IST today.

Nymex crude oil prices declined around 0.3 percent today on account of expected rise in US crude oil inventories coupled with dollar strength. However, sharp decline was cushioned on the back of the news that United Nations officials were denied access to a nuclear site in Iran leading to expectations of further supply concerns from Iran. Prices touched an intra-day low of $105.65/bbl and was hovering around $105.80/bbl till 4:30pm IST today. On the MCX, oil prices increased by 0.6 percent and was trading around Rs5248/bbl after touching an intra-day high of Rs5270/bbl till 4:30pm IST.

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and crude oil inventories are expected to increase by 1.5 million barrels for the week ending on 17th February 2012. Gasoline stocks are expected to rise by 0.3 million barrels and distillate inventories are expected to decline by 1.1 million barrels for the same week.

Outlook
Uncertainty over Greece's debt concerns will lead to rise in risk aversion in the global markets today. Taking cues from this, we expect strength in the US dollar in today's trading session.

On account of this, precious metals and base metals are expected to trade with a negative bias today.

We expect crude oil prices to trade with a sideways bias today, taking mixed cues from mixed sentiments in the markets, a stronger dollar and supply concerns from Iran.

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