MUMBAI (Commodity Online): Crude oil futures continued to trade down in mid London trade Friday as the US dollar strengthened against the major currencies apart from a dip in the global equities.
Oil for December delivery dropped as much as 55 cents, or 0.7%, to $76.91 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $76.92 a barrel when last seen.
MCX crude oil tumbled to as low as Rs 3621 and was last seen quoting at Rs 3635 down Rs 14 per barrel. Traders may sell the counter if it breaks below Rs 3615 levels with target of Rs 3545 and stop loss of Rs 3661.
Trade sitting at the comfort of home. Start with a mere 50$In the currencies the US dollar gathered some momentum, as there were no major data releases from US today.
Oil prices could continue to trade with a negative bias as even slight strength in the dollar could exert selling pressure. There is no economic data from the US today and oil prices could continue to take cues from the dollar.
Demand concerns in the oil market will also act as a bearish factor. Lower refinery rates indicate that the demand scenario is still bleak and prospects for the economic recovery are also mixed.
There are two extreme views over the economic recovery in the financial markets and that is also leading to mixed sentiments. Overall, the price rally in oil in the last few weeks was far outpaced and the selling pressure at higher levels was inevitable.
