MCX Crude oil is trading with marginal intraday gains in the early moves. The commodity went up from a five-week low in Asian trades as dollar fell well above 1.2800 against Euro and DOW futures recovered to quote up 27 points. Prices fell yesterday as poor US economic data and continued worries on the global economic front are seen hurting oil demand, pulling the commodity lower even as the dollar dips. Oil dropped for a fifth day yesterday, though a fragile recovery was seen in the intraday moves. The Federal Reserve Bank of New York reported that orders and sales dropped in August for the first time in more than a year.
Yesterday, the New York manufacturers' orders fell. The Federal Reserve Bank of New York's so-called Empire State factory index showed that bookings dropped for the first time since June 2009, while sales fell at the fastest pace since March 2009. Yesterday, the commodity dipped 15 cents to settle at $75.24 a barrel, the lowest level since July 12.
The National Association of Home Builders/Wells Fargo confidence index also unexpectedly declined to a 17-month low. In Asian trades, the Japanese GDP showed a annualized 0.4 percent in the second quarter. However, the GDP rose just 0.1 percent in the second quarter of 2010 compared to the previous quarter.
The prices bottomed out at a low of $75.01 per barrel in Asia and currently trade at $75.36, up 12 cents on the day. MCX Crude oil futures, which rebounded from a low of Rs 3507 per barrel yesterday, hit a high of Rs 3528 per barrel today. The counter quotes at Rs 3524 per barrel right now, almost unchanged from the previous close. Watch out for some gains if Rs 3530 overcomes.
