MCX Crude edged higher today, reversing some of the losses witnessed yesterday as global prices stabilize and equities turn in a mildly encouraging performance. However, the WTI futures on MCX continue to face a stiff resistance around Rs 5400 per barrel today as well. The commodity strode to fresh four-month highs above $97 per barrel in world markets after media reports suggested that China was planning fresh economic stimulus for the second half of the year. This was further followed by Former PBOC Adviser Li Daokui's comments that China's 4th quarter growth may be above 8.5% and that the economy is recovering.In Europe, German CDU lawmaker Barthle stated that some small concessions would be possible for Greece, but must be within existing programme. This indicated that the German stance on providing further stimulus to Greece and other peripheral nations could be softening. Recently, the German central bank had noted that it remains critical of having the ECB purchase sovereign bonds. A reflection of this upbeat mood in risky assets pulled the yields on the peripheral sovereign bonds down. 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 $97.04 per barrel right now, up $1.07 per barrel on the day. European equities are quoting strongly while US dollar is quoting at a two week low of 1.2460 against the Euro. MCX Futures would yet again find it difficult to surpass Rs 5400 per barrel levels. The counter currently trades at Rs 5385, up Rs 47 per barrel on the day.
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