Crude oil hovers around USD 97/barrel

By Gautam Broker, Research Analyst at CNBC-TV18

Commodity cues

WTI Crude ended below USD 97/barrel on Monday and Brent crude settled at USD 111.8/barrel, down 34 cents. Saudi reassured market with extra supply of oil while shipments from Libya are at a standstill. Oil market remains well supplied. It was hovering around the USD 97 a barrel in morning trade today.

API inventory report will be announced today. Inventories are likely to have risen by over 1 million barrels.

Precious metals market continued to watch Libya unrest. Gold was steady closer to USD 1410/ounce. SPDR holdings were at their lowest since May last year.

Base metals were reacting to macro data from China. Input price sub-index was up 80 bps. China PMI was down by 70 bps on month-on-month basis. Copper was marginally in the red.

Data to watch
-ISM Manufacturing Index
-Construction Spending

Angel Commodities advised to:
- Buy crude MCX March contract at Rs 4380 a barrel, with target at Rs 4500 and keep a stoploss of Rs 4320.