NEW YORK/ MUMBAI (Commodity Online): US crude oil futures have dropped after gaining 2.5% this week as higher US crude oil inventories and sharp fall in dollar.
As per the American Petroleum Institute (API) report released yesterday, crude oil inventories increased sharply by 3.5 mn barrels for the week ending 17th February 2012.
According to Angel Commodities, MCX Crude oil March is expected to trade range bound with support at Rs 5202 and 5161 per barrel while resistance levels are Rs 5279 and Rs 5375. The near month contract gained more than 1 percent this week closing at Rs 5243.
Crude’s relative strength index climbed above 70 yesterday, a sign prices may have risen too fast. WTI crude oil has gained 2.5 percent this week on concern tension with Iran over its nuclear program could threaten supplies. WTI crude oil is trading down 0.37% at $105.89 a barrel in electronic trading on Thursday.
Brent oil for April settlement has declined 0.15% to $122.71 a barrel, on the London-based ICE Futures Europe exchange. ICE Brent Crude's premium to New York-traded West Texas Intermediate was at $16.87 far lower than the record of $27.88 on October. 14.
Angel Commodities expects support for Nymex crude oil at $105.40/104.30 and resistance at $106.48 and 107.30 a barrel.
