Near-term range for crude at $72.80-76/bbl: An analysis

Crude prices slipped as credit clampdown in China and weak US homes prices data raised concerns about economic recovery and a potential rebound in energy demand. US inventory data will be announced today. Experts see near-term range at $72.80-76/bbl on crude.

Copper prices dropped for the first time in three sessions. The metal was down a percent and Aluminium too closed with losses.

The dollar rose after China told certain banks to raise reserve requirements, dulling investor demand for high-yield assets and currencies on fears the lending restrictions may slow a global recovery. The dollar index is currently trading above the 78 mark.

By Manisha Gupta, Commodities Editor at CNBC-TV18

Commodity watch

The Reuters CRB Index declined 1.03%.

Currency curve

The US Dollar and Japanese yen gained. China implemented planned increase in reserves. Euro, sterling, AUD and NZD declined nearly 1%.

Crude

Nymex Crude contract ended below USD 75 a barrel on Tuesday, as Dollar was firm versus euro. There was speculation that China will take further steps to cool economy,

US inventory data will be announced today. Experts see near-term range at $72.80-76/bbl on crude.

Base metals

Base metals declined for the first time in three days. Copper was down 1.1% to $7381/tonne.

Gold

Gold gained 0.3% to $1099.50/ounce but held 100 DMA of $1085/ounce. Silver declined 1.7% to $16.86/ounce.

Soybean

Soybean gained 1.1% after 11% decline this month, which were off 15-week lows.