Brent crude slips below USD 113/bbl

By Gautam Broker, Research Analyst at CNBC-TV18

Commodity cues

Crude was down for second day - WTI crude oil fell below USD 105/barrel and London Brent crude was steady below USD 113/barrel. OPEC members reassured on ample spare capacity and discussions were on for a possible emergency meet.

Saudi Oil Ministry said has enough spare capacity for oil markets. "Saudi spare capacity is currently at 3.5 mbpd and high oil prices are not linked to fundamentals."

High crude inventories weighed on prices yesterday - API report showed that inventories rose by 3.8 million barrels. EIA petroleum status report will be announced today - there were expectations of an over 1 million barrel inventory rise.

Base metals were stabilizing after sharp fall yesterday - Shanghai copper was up 0.5% while LME Copper fell just 0.2%. Bargain hunting was supporting precious metals.

ADMISI advised to;

- Sell crude MCX April contract at Rs 4820 a barrel, with a target at Rs 4720 and keep a stoploss of Rs 4851.