Crude trades below USD 82/barrel

Energy commodities sold off this session. Crude oil futures traded below the USD 82 a barrel level in early trade and closed New York session around the USD 82/bbl level. it is currently trading at USD 81.9 a barrel.

The dollar rose against the euro on persistent worries over Greece's debt problems after a report said the country was not optimistic about aid from euro zone members.

The greenback managed to sustain its gain in the face of tepid consumer price data, which is often treated as a barometer for inflation expectations.

Copper prices fell for the first time in three days as the dollar's rebound eroded the appeal of most metals as an alternative investment. Prices also dropped amid concern that China, the world's biggest metal buyer, may increase interest rates, damping commodity demand. Most other base metal prices were also muted.

By Raja Rajeshwari, Research Analyst at CNBC-TV18

Currency curve

The dollar traded higher on concern about Greek fiscal outlook.

US economic data 

US February CPI was unchanged. Jobless claims were slightly higher than expected.

Commodity complex

Crude and copper were fallen while gold, sugar and coffee pushed CRB index higher.

Crude broke 2-day rally and fell 0.88% to USD 82.20 per barrel. Support was seen at USD 81.68/bbl.

Comex Gold April Future was up by USD 2.30 an ounce.

Sugar gained 4% in New York trade, rebounded slightly after sinking to 8-month low.

Base metals were mostly lower in range bound trade. Copper was down by USD 48 a tonne. Aluminium and zinc too lost. Nickel was at 4-month high.

Data to watch

Report from Comm Fut Trading Commission

Strategies

Karvy Commodities view

Buy MCX Gold April future at Rs 16720-16730 per 10 grams. The target is at Rs 16850 and one can keep a stoploss at Rs 16650.

Buy MCX Nickel March future at Rs 1024-1026 per kg with a target of Rs 1050. Keep a stoploss below Rs 1010.