Expect Crude to go up on improved demand from US: Emkay

Emkay Commotrade has come out with its report on energy and base metals. According to the research firm, crude prices are expected to go up as improved demand from US is likely to support prices.

Energy:

U.S. crude futures for May delivery settled up $1.10 at $94.81 a barrel, up by 1.17%.

Crude prices were supported on optimism over the Cyprus bailout deal which improved the demand prospects from the euro area.

Saudi Arabia’s oil minister said that prices around $100 a barrel were reasonable for both producers and consumers, which also helped push crude prices higher.

We expect crude prices to go up as improved demand from US is likely to support prices.

Natural gas fell on Monday due to profit taking and as higher inventories raised concerns as the winter season is about to end.

Natural gas looks weak as the heating demand is expected to slow down gradually as the winter season comes to an end.

Front-month gas futures on the New York Mercantile Exchange ended down 6.2 cents, or 1.6 percent, at $3.865 per mmBtu after trading between $3.86 and $3.996.

Base Metals

In New York, COMEX copper for May delivery closed down at $344.50 a tonne, down by $2.10, or 0.61%.

Copper prices were down over fears that Cyprus deal would be used as a base for future rescue of banks in the euro zone, which reduced appetite for riskier assets.

A stronger dollar internationally also weighed on prices.

Base Metals are expected to go down as highest inventory levels in LME and modest demand from China can continue to put pressure on prices.

Three-month copper on the London Metal Exchange ended at $7,620 a tonne, down from Friday's close of $7,655.

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