Expect Crude to trade with a sideways bias today: Angel

Crude Oil: On a weekly basis, Nymex crude oil prices declined by 0.6 percent on the back of decline in manufacturing PMI of world major economies, ECB President Statement that risk still remains in spite of the rates cut along with strength in the DX. However, sharp downside in the prices was restricted on the back of more than expected decline in US crude oil inventories during the week coupled with strike in Norway. Crude oil prices touched a low of $82.10/bbl in the last week and closed at $84.12/bbl in the last trading session of the week. On the domestic bourses, prices gained by 1.8 percent and closed at Rs.4,747/bbl on Friday after touching a high of Rs.4,899/bbl during the week.

Natural Gas: Nymex natural gas prices declined by more than 1 percent in the last week taking cues from expectations of milder weather along with rise in US natural gas inventories. Additionally, a stronger DX also acted as a negative factor for the commodity. Natural gas prices touched a low of $2.742/mmbtu during the week and closed at $2.79/mmbtu on Friday. In the Indian markets, prices gained by more than 2 percent and closed at Rs.157.70/mmbtu. However, appreciation in the Rupee capped further gains of prices on the MCX.

Outlook: From the intra-day perspective, we expect crude oil prices to trade with a sideways bias on the back of negative global market sentiments coupled with stronger DX. While on the other hand negotiations have failed between the platform workers and management in the Norway and workers will continue their strike along with supply concerns from Iran.

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