Crude slips 2.5% to USD 89/bbl on Tue

By Gautam Broker, Research Analyst at CNBC-TV18

Sharp decline was seen across commodities. CRB Index ended down 1.6% on Tuesday. Profit-booking was seen as primary reason for decline. December saw sharp rise in commodity prices. CRB had seen a 10% rise in December alone. Metals and soft commodities led correction yesterday. Gold declined 3% and US Silver lost nearly 5%. Raw sugar was down to 31 cents/lb and fell 3.5%. US Copper was down 2% and LME copper down 0.5%. Crude lost 2.5% and was down to USD 89/barrel. Crude fell despite bullish inventory data. It is currently trading at USD 89 a barrel. API reports 7.5 million barrels decline versus expected 1.8 million barrels. Data to watch
-ISM non-manufacturing Index
-EIA Petroleum status report Anand Rathi Commodities advised to;
- Buy natural gas MCX February contract at Rs 197 mmbtu, with a target of Rs 210 and keep a stoploss at Rs 192
- Buy nickel MCX January contract at Rs 1150, with a target of Rs 1185 and keep a stoploss at Rs 1130.