Crude oil trades below USD 87/barrel

By Gautam Broker, Research Analyst at CNBC-TV18

Commodity cues

Brent crude was up at USD 102/bbl on Wednesday as Egypt concerns came back to the fore. Weaker US dollar too aided upmove in brent.

WTI crude oil ended below USD 87/barrel. EIA says stockpiles went up 1.9 million barrels. Brent premium to WTI now stood at record USD 15/barrel.

Gold was flat with a slight a negative bias. SPDR holding was in decline mode again. Dollar weakness is expected to support gold prices.

LME Copper saw an over 1% cut yesterday. China tightening and rise in stockpiles weighed on copper prices. LME Copper stockpiles went up by 1.1% yesterday and up by 5% this year. Copper was in recovery mode this morning.

Data to watch - Jobless Claims

Angel Commodities advised to:
- Buy gold MCX April contract at Rs 20300 per 10 grams, with a target of Rs 20450 and keep a stoploss at Rs 20200.
- Sell crude MCX February contract at Rs 4000 per barrel, with a target of Rs 3940 and keep a stoploss at Rs 4040