Crude oil futures are expected to witness some losses as the market participants cover their longs ahead of the weekends and book some profits. Crude oil futures went up yesterday following the weakening dollar and added to their recent gains. Light, sweet crude for September delivery settled $1.37, or 1.8%, higher at $78.36 a barrel on the New York Mercantile Exchange, after rising as high as $78.89. Futures rose after the euro hit an 11-week high above $1.31 early in the session. Improving economic data in the euro zone combined with weaker government reports in the US to send the greenback lower, which makes oil cheaper to buyers using other currencies. Euro-zone economic sentiment rose to the highest level in more than two years in July. But a better-than-expected report on U.S. weekly jobless claims failed to cut worries over the U.S. economy. The US dollar is off its three month lows right now and the markets are awaiting the US second quarter GDP data quite nervously. The Second-quarter real GDP is expected at 2.5%, down from 2.7% in the previous period and some degree of risk aversion is already coming into play with the DOW futures sliding by 35 points. Watch some losses for crude in case $78 is broken. The commodity was last seen quoting at $78.14, down 22 cents on the day. MCX Crude oil futures for August had rebounded from levels under Rs 3600 per barrel to close at its best level in four sessions, ending at Rs 3652 per barrel. Watch out for Rs 3642 and Rs 3611 to act as critical supports.

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