MCX Crude oil futures surged above Rs 4700 per barrel following the rally in the WTI futures. The commodity extended its gains in European trades. The HSBC flash purchasing managers' index for December rose to 50.9, a 14-month high and the fifth straight monthly gain. The commodity extended the overnight recovery above $86 per barrel following this and currently quotes at $86.78, up 90 cents per barrel on the day.
WTI futures had tested lows near $85 per barrel earlier. However, bargain hunting has been a prominent feature of the trade in last few days. Markets were given a positive impetus by the latest IEA report placing the global oil demand estimates slightly higher in 2013. The global crude oil demand is estimated to rise by 110000 barrels to 90.5 million barrels per day in 2013, according to a latest update from the International Energy Agency (IEA). In its monthly market report, the Paris-based agency said that emerging markets continue to dominate growth and five of the top-10 oil consuming nations now are non-OECD countries.
Euro hit one-week highs above 1.3100 levels against the US dollar today as sentiment remained supported after Greece secured a new tranche of financial aid and persistent worries over US fiscal cliff hurt the greenback. The single currency came off these highs though as European markets slipped after early gains and currently quotes under 1.3100. The Fitch ratings agency said on Friday that it was keeping France's top AAA credit rating, the only one of the three major ratings agencies to do so, but added that its outlook remained negative. The affirmation of France's 'AAA' status is underpinned by its wealthy and diversified economy, stable political, civil and social institutions and its exceptional financing flexibility reflecting its status as a large benchmark Euro zone sovereign issuer, it said in a statement.
Data out earlier in the week stated that China's crude oil imports in November rose 3% from a year earlier to about 5.69 million barrels per day, the joint third highest daily rate on record, as oil firms started new refining units to raise the processing rate. China, the world's largest crude buyer after the United States, imported 23.37 million tonnes of crude oil last month, data from the General Administration of Customs showed on Monday. That was 110,000 bpd above the October level and compared to an all time high at 5.98 million bpd in February this year.
WTI Crude could face some resistance after gaining one dollar so far today and some profit selling could emerge in New York trading ahead of weekends. MCX Crude oil futures are trading at Rs 4731, up Rs 15 per barrel on the day. Prices have found a good support around Rs 4700 per barrel today.
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