MUMBAI (Commodity Online): Crude oil prices are seen in the positive territory Tuesday in the domestic futures market. However, in the global market the crude is trading flat near $77 a barrel, pressured by the rally in US dollar.
MCX Crude oil traded higher as December contract quoted at Rs 3595 a barrel. Crude oil for January delivery was at $77.32 a barrel, up 4 cents, in electronic trading on the New York Mercantile Exchange. Yesterday, the contract increased $1.23 to settle at $77.28 a barrel. Futures have gained 74% this year after a drop of 54% in 2008.
Oil advanced 1.6% yesterday after the Institute for Supply Management-Chicago Inc. said its business barometer climbed to 56.1, the highest level since August 2008. China's manufacturing growth held at the fastest pace in 18 months in November, aiding the rebound of the world's third-largest economy, according to a report today.
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Crude oil ended higher rebounding from Friday's heavy losses as a weak dollar attracted buyers and geopolitical risk premium related to Iran also raised jitters. OPEC oil supply rose in November on higher output from Nigeria, the United Arab Emirates and Saudi Arabia.
Now support for the crude is seen at 3513 and below could see a test of 3475. Resistance is now likely to be seen at 3585, a move above could see prices testing 3619.
