Crude oil futures may go up: Karvy Commodities
Karvy Commodities Broking has come out with its report on crude oil and natural gas. According to the research firm, Crude oil future is expected to continue its bull run in today‘s session on expectation of positive economic releases from major oil consuming nation US.
September 04, 2012 / 12:26 IST
Karvy Commodities Broking has come out with its report on crude oil and natural gas. According to the research firm, Crude oil future is expected to continue its bull run in today’s session on expectation of positive economic releases from major oil consuming nation US.
Crude oil futures prices are heading for four month’s high level above $97/bbl in international market currently. Speculation of easing by European Central bank is keeping the sentiment high in the market. The credit rating agency Moody has warned European Union debt rating with negative outlook in line with its core members Germany, France, UK and Netherland. Thus, expectation from ECB is increasing high in the coming meet. Most of the Asian equities are trading almost flat to negative may be limiting gains in oil price move. However, we may expect oil futures to continue its bull run in today’s session on expectation of positive economic releases from major oil consuming nation US. Economic data releases in the form of ISM manufacturing and prices paid are likely to increase due to improvement of manufacturing activities in other region of US. Increasing housing sales may reflect on higher construction spending in the last month. So, positive economic releases from US may support oil prices to take positive cues in the US session. Ahead of ECB meet, investors are eying on monthly payrolls data of US which will be one parameter for Fed to decide easing in the nation. Overall, we may expect oil prices to trade in a positive trend in this active hurricane season with above economic factors. We may suggest to remaining on buying side for the day. Natural Gas: Currently, natural gas prices are trading almost flat at $2.800/MMBTU in Globex electronic platform. In today session we may expect gas prices to hold a positive stance on the back of speculation of easing by major central banks of the world. Other than this, active hurricane season with presence of tropical storm Leslie which is becoming stronger but not moving much may keep threat of supply disturbances. This may support the trend in gas prices. We suggest remaining on buying side for the day.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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