WTI Crude oil futures showed signs of easing in Asia as a bounce in the US dollar yesterday clubbed with the fact that commodity has gained nearly seven dollars in the week are expected to trigger some amount of profit selling. The global markets mostly trading weak while the US dollar is lingering around 1.3060- coming off its one week lows above 1.3200 against the Euro yesterday as after the ECB generously lend to the European Banks yesterday, flushing the credit markets and easing the demand for Euros. . The European Central Bank lent euro 489 billion ($639 billion) to the continent's banks for an unprecedented three years in an effort to bolster Europe's stressed financial system and 523 banks took the loans. It was recorded as the biggest ECB bank liquidity operation ever, surpassing the euro442 billion in one-year loans from June 2009. Meanwhile, even as the gains in the US dollar eroded the other commodities like gold and copper, crude turned higher as the US Energy Information Administration reported a bigger-than-expected drop of 10.6 million barrels in U.S. crude supplies for the week ended Dec. 16. Motor gasoline supplies also fell 400,000 barrels, while distillate stocks declined by 2.4 barrels in the latest week, the EIA report said. Oil prices were also pushed up by better global economic news and fears that strife in some important oil-producing nations could restrict supplies. Tensions between Iran and Western nations are rising over Iran's nuclear ambitions, raising fears that oil from the world's fourth biggest producer may be kept from reaching markets in the coming weeks. These massive gains ensured that the strong wave of optimism that had lifted the commodity from its six-week lows under $93 per barrel extends further within striking distance of $100 per barrel. MCX Crude oil futures closed with strong gains, adding more than 1% and breaking above Rs. 5200 per barrel mark. However, the sentiments turned around a bit today in Asian trades and the commodity faced resistance above $99 per barrel mark. The prices are lingering at $98.76 per barrel right now, still up 9 cents on the day. The MCX Crude oil futures are quoting at Rs. 5225, up Rs. 11 on the day. Its been a very choppy session so far with the counter trading in a range of Rs. 5211-5232 per barrel.

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