Brent crude trades above USD 116/bbl

By Gautam Broker, Research Analyst at CNBC-TV18

Commodity cues

Crude oil was firm on West Asia turmoil yesterday. The US says, further strikes on Libyan leader Gaddafi's ground forces. But further military action lacks backing from all alliance members. Thousands of Yemeni protestors take to the streets and President Saleh remains defiant, with saying country could be headed to a civil war.

API says crude inventories went up 970,000 last week. EIA inventory report will be announced today. London Brent crude was trading at USD 116.2 a barrel and NYMEX crude oil was around USD 105 a barrel.

Base metals remained subdued on MENA concerns. Copper was down marginally on LME. Shanghai copper was beginning to stabilize.

Gold was steady at above USD 1425/ounce; support from MENA tensions offset by dollar strength.

Data to watch
-New Home Sales for Feb
-EIA inventory report

Admisi advised to:

Buy gold MCX April contract at Rs 20880 per 10 gram, with a target at Rs 21050 and keep a stoploss of Rs 20819.