Support for MCX Crude Dec at Rs 5185: Kotak Commodity
Kotak Commodity has come out with its report on Crude Oil. According to the research firm Support for MCX Crude Dec. contract is seen at Rs.5185 while Resistance is seen at Rs.5265.
December 08, 2011 / 11:29 IST
Kotak Commodity has come out with its report on Crude Oil. According to the research firm Support for MCX Crude Dec. contract is seen at Rs.5185 while Resistance is seen at Rs.5265.
NYMEX crude trades in a narrow range above $100 per barrel Thursday after a 0.8% decline yesterday which marked its first drop in four trading sessions. Crude oil fell as low as $99.67/bbl in intraday trades yesterday but pared some of the losses to end above $100 per barrel. Crude has managed to settle above $100/bbl in last six trading sessions. Crude oil came under pressure yesterday as EIA report noted an unexpected increase in US crude oil stocks and a bigger than expected increase in product stocks. However downside was limited by minor gains in equity markets and tensions relating to Iran. While both WTI and Brent crude ended lower yesterday, WTI crude outperformed following which the spread between the two narrowed. The premium of ICE Brent crude over NYMEX WTI crude narrowed to $9.04/bbl from $9.53/bbl a day earlier. At current price, the spread stands at $9.16/bbl. The spread narrowed as EIA report noted a drop in stocks at Cushing. Also weighing on Brent prices are expectations of resumption of Libyan oil supplies. However tensions in Iran are lending support to Brent and the spread may not narrow substantially.Outlook
Crude Oil - MCX Crude may note some decline tracking cues from international exchange however downside is limited. NYMEX crude trades in a narrow range above $100/bbl awaiting fresh cues. Weighing on prices is choppiness in equity markets amid continuing concerns about Euro-zone economies and EIA report which noted an unexpected increase in US crude oil stocks. However supporting prices are tensions relating to Iran. Also market players are on the sidelines ahead of the key ECB interest rate decision and EU summit. Trend in equity and currency markets will continue to determine the trend in crude oil prices and focus will be on Eurozone and US economy. Focus today will be on BOE and ECB interest rate decision and US weekly jobless claims. ECB is expected to cut interest rate by 25 basis points. Such a move could give a short term boost to the market however it will also weaken euro against the US dollar. Support for MCX Crude Dec. contract is seen at Rs.5185 while Resistance is seen at Rs.5265.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.To read the full report click on the attachment 
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