Expect crude to trade with range bound note: Angel

Angel Commodities has come out with its report on metals and energy. According to the research firm, crude oil prices are expected to trade with a range bound note in today’s trade on the back of mixed global market sentiments, amidst rangebound movement in the DX along with increase in US crude oil inventories from the API.

Crude Oil: Nymex crude oil prices gained by 0.9 percent yesterday taking cues from Tropical storm Isaac striking the south-eastern coast of Louisiana coupled with weakness in the DX. Overall 93 percent of oil production in halted in Gulf of Mexico and 67 percent of gas output as the storm is moving closer to the production units. Also fire broke out again in Amuay refinery in Venezuela which is second largest in the world also helped upside in the prices. In the Indian markets prices gained around 1 percent on account of depreciation in the Indian Rupee and closed at Rs.5,362/bbl on Tuesday. API Inventories Data: As per the American Petroleum Institute (API) report last night, US crude oil inventories unexpectedly increased by 5.5 million barrels to 366.51 million barrels for the week ending on 24th August 2012. Gasoline inventories fell by 2.4 million barrels to 204.12 million barrels and whereas distillate inventories gained by 1.4 million barrels to 126.49 million barrels for the same week. EIA Inventories Forecast: The US Energy Department (EIA) is scheduled to release its weekly inventories report today at 8:00pm IST and US crude oil inventories is expected to decline by 1.5 million barrels for the week ending on 24th August 2012. Gasoline stocks are expected to fall by 1.4 million barrels whereas distillate inventories are expected to drop by 0.1 million barrels for the same period. Outlook: We expect crude oil prices to trade with a range bound note in today’s trade on the back of mixed global market sentiments, amidst rangebound movement in the DX along with increase in US crude oil inventories from the API. While on the other hand, temporary shutdown in world’s second biggest refinery coupled with forecast of decline in US crude oil inventories will support an upside in the prices. 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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