Crude oil prices gained sharply around1% on the Nymex, to close at $82.52/bbl on Monday. However, on the MCX, crude oil prices declined slightly by 0.2% to close at `3,661/bbl yesterday.
Appreciation of the Indian Rupee (INR) exerted pressure on the oil prices on domestic platform on Monday.
Spot Rupee appreciated by 0.5%, to close at 44.35 yesterday. India imports a large chunk of crude oil from overseas markets and a strong domestic currency makes imports look inexpensive for domestic investors.
Crude oil prices witnessed gains on the Nymex mainly taking cues from the weakness in the US Dollar Index (DX). Moreover, China has raised its oil prices by 3% but this is unlikely to diminish demand from the world’s largest consumer.
The pension reform strike in France had calmed down yesterday and many refineries had been opened to normal.
On the hurricane front, the Hurricane Richard had weakened to tropical depression yesterday and posed no threat to the Gulf of Mexico.
OUTLOOK
Crude oil prices will take cues from the Inventory report to be released from American Petroleum Institute (API) today.
Oil prices will also be influenced by the movement in the DX which is expected to trade with a depreciation bias today.
Support for NYMEX December Crude Oil is seen at $81.50/$80.50 levels & resistance at $83.30/$84.20 levels.
Natural Gas MCX October contract has major support at ` 143.00 & resistance at ` 152.00 levels.
