In the futures market, crude oil for September delivery touched an intraday high of Rs 2,896 and an intraday low of Rs 2,855 per barrel on MCX.
Mark To of Wing Fung Financial Group says that the overall demand-supply story is now changing. He said that there can be some profit booking at these levels but crude is likely to rise up to USD 60 per barrel by Christmas.
â€œNo balance is seen yet in supply-demand dynamics. Also, temperate winter in North America and Europe due to El Nino is hitting demand further worsening the balanceâ€, says Chris Main, Commodities Strategy Analyst, Citi
Tensions in Greece and a potential correction in the stock market in China aside, the sell-off in oil market last week was sparked by the US reporting the first increase in the number of rigs and the first increase in US crude oil inventories, says Victor Thianpiriya of ANZ Research.
Jim Nicholson, vice president-Asia at Argus Media tells CNBC-TV18 that he is concerned about the issues in Iran impacting crude prices. “The problem in Straits of Hormuz is a matter of worry for the crude market even as global supply concerns in Iran are prevalent,” he says.
Ritesh Gandhi, senior research analyst of commodities and currencies at Anand Rathi Commodities joins CNBC-TV18 to give his view on the commodity space for today.
Brijen Puri, head of FX trading at JP Morgan said that the market may actually move higher if the dollar doesn’t close below the 50 level today.