Sell MCX Crude Oil below Rs 5010: Dani

Dani Commodities has come out with its report on Crude Oil. According to the research firm, one can sell MCX Crude Oil below Rs 5010 with Rs stoploss Rs 5040 for the target of Rs 4980.

Crude oil futures headed towards $93 a barrel in Asia electronic session today boosted by surprise fall in inventories. The market also factored in a monthly report from the Organization of the Petroleum Exporting Countries, which left its forecast for world oil-demand growth unchanged. Crude-oil supplies fell unexpectedly for the week ended March 8, according to data from the American Petroleum Institute issued late Tuesday. Crude supplies declined by 1.4 million barrels. Analysts polled by Platts were looking for a 2.3 million-barrel climb. The API data come ahead of the more closely watched U.S. Energy Information Administration report due Wednesday.

Crude oil for April delivery is trading up 14 cents at $ 92.68 per barrel on the New York Mercantile Exchange. Yesterday, it rose 48 cents, or 0.5percent, to settle at $92.54 a barrel. That was the highest settlement for a front-month contract since Feb. 27. Prices had traded as high as $93.47 during the session. In its monthly report released Tuesday, the Organization of the Petroleum Exporting Countries said it expected world oil demand to grow by 800,000 barrels a day in 2013, unchanged from its previous forecast. OPEC said growth in non-OPEC oil supply of around 1 million barrels a day would cut into the organization’s market share.

Recommendation:

MCX Crude Oil: Sell below 5010, stoploss- 5040, target- 4980.

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