Crude oil futures are trading above $85 a barrel in Asia today tracking the gains in Asian markets as Greece's pro-bailout party appears likely to secure a narrow election win, making Greece less likely to leave the euro zone for now.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August are trading up nearly 1% at $84 per barrel. On Friday it settled up 0.1%, at $84.03 a barrel. A week ago, it settled at $84.10.
Oil was boosted by expectations that global central banks are preparing for coordinated action to provide liquidity if necessary following weekend elections in Greece. The Federal Reserve and other central banks from the Group of 20 nations are reportedly getting ready to provide stimulus, amid mounting concern that Greece might leave the euro zone following the result of elections this weekend. European Central Bank President Mario Draghi reportedly said on Friday that the ECB will continue to supply liquidity to solvent banks where needed.
Gains were limited by a string of weaker-than-expected U.S. economic data, which added to concerns over a slowdown in oil demand from the world's top energy consumer.
Meanwhile, all members of the Organization of Petroleum Exporting Countries agreed Thursday to keep their production target steady at 30-million-barrels-a-day. While agreeing to hold the output target steady, however, the statement suggested that OPEC ministers were ready to come together on short notice if prices fell to levels dictating a production cutback.
A potential loss of Iranian oil supplies helped underpin strong gains in oil prices during late last year and the first quarter of this year. But prices are down nearly 24% from this year's high in March, as the market took into account assurances from Saudi Arabia that it would make up for any supply shortfalls against the potential risk for the loss of oil from Iran.
MCX June crude oil futures may open today's session near Rs 4690 levels with resistance around Rs 4730 and Rs 4755 levels.
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