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Crude has resistance at USD 69-71 per barrel

Published on Mon, Nov 03, 2008 at 09:25 | Source : CNBC-TV18

Updated at Mon, Nov 03, 2008 at 15:05

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Crude saw range of USD 61-71 per barrel in the last week and pretty much the same range might see in this week. It has resistance at USD 69-71 per barrel.

Here is a verbatim transcript of Manisha Gupta's comments on CNBC TV18. Also see the accompanying video.

Crude saw range of USD 61-71 per barrel in the last week and pretty much the same range might see in this week as well. Many factors that the market would be watching; one is the heating oil demand from US and how that pans out there could be some support from that and Kuwait, Nigeria and UAE actually have informed their customers of cut in output, the word is yet to come out from Saudi Arabia and that is what the markets really are waiting for and that is something that would give support to prices as well. A bit of decline in US dollar has done good for commodities and we have seen a sideways to strength happening in most of them at this point in time.

The net short positions reported by Commodity Futures Trading Commission (CFTC), continues to weigh on the prices but it is still buy on dips and USD 69-71/bbl on the higher side is your immediate resistance in case of crude prices.

Base metals saw sharp declines happening in whole of that October month in case of them, Friday saw a bit of gains and Shanghai actually has opened quite sideways. It is still is trading at its support levels in case of most of those base metals. In case of copper it is between USD 3,600-4,500/tonne that you might see trade happening for this week as well. Nickel has seen a low of USD 9,300/tonne happening a couple of weeks back and if that one holds then one might see more gains happening in case of nickel, USD 11,700/tonne is the resistance for that one as well. Lead prices, zinc prices all have been oversold in last couple of weeks and some bargain buying and short covering is now happening here but sustainability is really an issue because we are not looking at too much of demand coming in from US or Europe or even China for that matter.