Crude oil prices rose on Monday as data showed that global manufacturing expanded, indicating that demand for fuel could rise. Upbeat manufacturing reports from the US, China and Europe lifted sentiment in the financial markets. A decline in the dollar also provided stimulus to the upside as it made the commodity look attractive for holders of other currencies.
Though fundamentally there has not been a major improvement in the demand scenario as of now. But prospects of a rise in demand on the back of strong manufacturing data could help crude oil prices traded with a positive bias. Oil prices could face resistance around $80/bbl levels.
The weakening of the dollar could halt if the US Federal Reserve hikes interest rates. Though there is a very bleak chance of the US Fed raising interest rates this week, we could see that pulling back sooner rather than later. The dollar could rebound and put pressure on crude oil if interest rates rise.
Nymex October Natural Gas futures ended in the red on Monday, to close below the $5.00/mmbtu mark.
Overall economic data from the US has been positive and that has helped to boost risk appetite in the financial markets. This rise in risk appetite coupled with the current weak state of the dollar could continue to drive oil prices higher. Though, a rise in inventories could hurt a sharp upside in crude oil.
Today, we could witness sideways move in crude oil prices with support for NYMEX Dec Crude Oil is seen at $76.80/$75.65 level & resistance at $78.90/$79.85 levels.
Natural gas price will take cues from oil prices. Natural gas MCX November contract has major support at 221 & major resistance at 242 levels.
Courtesy: Angel Commodities Explore Commodity Online Mobile Services
