Smooth Rally In MCX Crude

Oil....

MCX Crude oil futures witnessed some bargain buying today as traders entered long after a deep correction yesterday and global prices stayed afloat ahead of the US weekly inventories data release later on today. The WTI crude futures were hit hard yesterday amid nervous trades as Cyprus banking worries lingered on and traders booked profits at three week high. The counter quotes at $93.16, up 64 cents per barrel on the day.

The commodity slipped to lows near $92 per barrel yesterday as the US dollar strengthened to a four-month high of 1.2844 against the Euro after the Cypriot government overwhelmingly rejected a EU proposed bank levy. The currency also made gains against a number of other peers due to the release of further positive economic data. The number of building permits issued in February rose by 4.6%, indicating continued strength in the key housing market.

However, the dollar pared back some of these gains and was quoting above 1.2900 levels against the Euro today. Eurozone finance ministers have assured that they still stood ready to help Cyprus after the island's parliament voted down the bank deposit levy. This boosted the confidence of the market players and decent gains have trickled in the European equities today.

WTI futures have also run up in tandem but could find it difficult to hold on ahead of US weekly energy supplies data and the FOMC decision. MCX Crude oil futures for April tested highs above Rs 5100 and linger around the same mark- recording a gain of Rs 13 per barrel on the day with a near 21.60% increase in open interest. Prices have scaled up smoothly during the session on steady buying interest.
Source  by Commodity Insights