Crude oil futures jumped above $98 a barrel in early electronic trades today as investors react to reports of positive developments in the European debt crisis.
Crude oil for January delivery are trading up $1.35 at $ 98.12 per barrel It ended the week up 60 cents, or 0.6%, to settle at $96.77 a barrel on the New York Mercantile Exchange. On the week, however, oil lost 0.7%.
A faltering macroeconomic outlook has hung over oil prices, even as some fundamentals of the oil and commodity markets remain somewhat robust. Demand from Europe and US is very critical for the growth of Crude oil prices. International Energy Agency Chief Economist Fatih Barol said recently that the world economy was in a fragile state, more worrisome than the 2008-2009 crisis.
In the week ahead, investors will be eyeing an auction of Belgian government debt on Monday after ratings agency Standard & Poor's downgraded its rating on Belgium by one notch on Friday. Meanwhile, euro zone finance ministers are to meet Wednesday to discuss details on leveraging the region's bailout fund, although a major announcement is unlikely.
Also next week, the U.S. is to release its closely watched report on non-farm payrolls. U.S. is to release a closely watched report on non-farm payrolls compiled by payroll processing firm ADP, which leads government data by two days. The U.S. is also to release data on manufacturing activity in the Chicago area as well as government reports on pending home sales, non-farm productivity, labor costs and crude oil stockpiles.
MCX benchmark crude future may start todays session above Rs. 5070 levels with resistance around Rs. 50100 levels.
