Crude may see a range of USD 61-71/bbl

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » Nifty BSE | NSE 13/02/12 Are Mutual Funds betting on Nifty?

Here is a verbatim transcript of Manisha Gupta's comments on CNBC-TV18. Also watch the accompanying video.
 
The important point has been in the recent weeks that Crude has not breached USD 60/bbl on the lower side and has not been able to take up the USD 71/bbl on the higher side as well. That is the range that we would continue to see for this week as well.
 
There are quite a bit of mixed factors that we have in the market right now. On one side, of course, there are lots of stimulus packages coming in from the various governments and that is supporting the economy and demand in that sense. Organization of the Petroleum Exporting Countries (OPEC) cut also have started showing in the market. Russia cut is 25% below the normal and that is what is supporting the prices a bit. Also the northern hemisphere's heating oil demand will start showing into the markets. The US dollar has declined a bit because of the weak data, which we have seen in the past week.
 
All these factors continue to weigh on the prices but the demand is still slow and we have seen inventories pile up for six weeks in a row and that is what is weighing on the prices. The same range USD 61-71/bbl is what we would see in this week as well.