Crude oil prices have been strongly supported by tensions stemming from Iran. International crude prices are trading near $100/bbl, threatening to spike higher on any indication of further geopolitical heat between Iran and the West.
MCX Crude Oil opened at Rs 5293 on Monday, the first trading day of 2012 while NYMEX crude oil February contract settled at $98.83 on Dec 30, the last trading day of 2011.
MCX crude oil is trading near its crucial support at Rs 5250 (see chart below). Prices have formed two consecutive peaks at around the same level. And hence, technically, a strong break below Rs 5250 could indicate a move lower. And if price remains above the level, it could act as a base from which crude prices could move higher. Especially in the event of Iran tensions spiralling out of control.
