Crude may trade positive on upbeat global market sentiments

Angel Commodities has come out with its report on Crude and Natural Gas. According to the research firm, crude oil prices are expected to trade on a positive note on the back of upbeat global market sentiments along with hopeful statement from the ECB President.

Crude Oil
Nymex crude oil prices gained by 0.5 percent yesterday on the back of positive statement from the European Central Bank (ECB) President Mario Darghi along with decline in US jobless claims. Additionally, weakness in the DX also helped upside in the crude prices. Crude oil prices touched an intra-day high of $90.47/bbl and closed at $89.40/bbl in yesterday’s trading session. On the domestic bourses, prices gained around 1 percent and closed at Rs.4,996/bbl after touching an intra-day high of Rs.5033/bbl on Thursday.

Natural Gas
Nymex natural gas prices gained around 0.7 percent yesterday taking cues from rise in US natural gas inventories as per the expectations. Additionally, a weaker DX also helped upside in the commodity. Gas prices touched an intra-day high of $3.129/mmbtu and closed at $3.095/mmbtu on Thursday. On the MCX, Natural Gas July contract rose around 0.2 percent and closed at Rs.172/mmbtu after touching an intra-day high of Rs.174.9/mmbtu in yesterday’s trading session. However, further upside movement in prices was capped on the back of appreciation in the Indian Rupee.

EIA Inventories Data
US Energy Information Administration (EIA) released its weekly inventories yesterday and US natural gas inventory has increased as per the expectations by 26 billion cubic feet (bcf) which stood at 3.189 trillion cubic feet for the week ending on 20th July 2012.

Outlook
In today’s session, we expect crude oil prices to trade on a positive note on the back of upbeat global market sentiments along with hopeful statement from the ECB President. Additionally, weakness in the DX will also help upside support in crude oil prices. However, appreciation in the Indian Rupee will cap sharp gains on the MCX.

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