MCX Crude is quoting higher today, reversing some of the losses witnessed yesterday as global prices stabilize and equities turn in a mildly encouraging performance. The WTI futures on MCX slipped yesterday as Rs 5400 acted as a key upside barrier for the counter and expiry of near month August series turned in as another negative influence for prices. The commodity had a very good time in the last few days, hitting a fresh lifetime high of Rs 5395 per barrel on Saturday. The WTI Futures came off their four-month highs yesterday amid talks of China not appeasing the markets with monetary stimulus. The commodity ended down three cents at $96.15 per barrel. This was the first loss in six sessions for oil prices.
The commodity had edged up in the world markets on Friday on supportive equities and ideas that the European Central Bank is weighing a plan to cap borrowing costs for struggling euro-zone governments by buying unlimited amounts of bonds. The WTI Crude futures closed at a four-month high of $96.18 per barrel on Friday, up around one dollar on the day. MCX Crude ended at Rs 5373 on Friday, up Rs 46 per barrel on the day. The counter edged up further on Saturday to close at Rs 5391 per barrel.
The crude oil prices have edged up in last few days despite fears of slackening global demand as markets speculate on liquidity infusions by US, Eurozone and China and every moderate dip in the oil prices is followed by steady dose of buying. Oil traders have been wary of the deepening crisis in the Middle East. Recently the Organization of Islamic Cooperation suspended Syria's membership at a summit of Muslim leaders in Mecca, citing President Bashar al-Assad's violent repression of the Syrian public protests. Crude was supported further last week after US crude stockpiles fell more than expected last week, slipping 3.7 million barrels to 366.16 million barrels, according to the Energy Information Administration.
The commodity quotes at $96.39 per barrel right now, up around 20 cents on the day. The equities have been holding up amid mixed economic data from Japan. Equities are mostly treading water as investors await the release of the minutes from the Federal Reserve's August policy meeting. The US dollar is hovering around 1.2350 against the Euro after hitting around 1.2300 yesterday. Oil could face selling pressure on rallies from hereon amid such an environment and MCX Futures would yet again find it difficult to surpass Rs 5400 per barrel levels. The counter currently trades at Rs 5366, up Rs 28 per barrel on the day.
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