Last Updated : 16 January 2013 at 18:40 IST
MCX Crude Oil: Bearish near-term until Commodity does not close above Rs.5170
Source :Commodity Online Research desk
For the near term prices will remain bearish until it does not close above Rs.5170 mark. Sell-on-rise strategy is suggested for near term traders.
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MUMBAI (Commodity Online): Crude oil futures on India's MCX is down as rupee weakened amid fresh concerns over US debt ceiling and bullish inventory levels predicted for evening by Bloomberg. The commodity was spotted trading at Rs.5111 a barrel, a loss of 0.39% as of 06.20 PM IST.
The US EIA data for crude inventories is due to be released this night. Energy department report may show stockpiles climbed by 2.2 million barrels, Bloomberg said.
"MCX Crude oil prices are likely to face resistance above Rs.5130 above which it may face resistance at Rs.5150. Instant support exists at Rs.5100 and next support stays at Rs.5080." said Amrita Mashar, Research Analyst at Commodity Online.
"For the near term prices will remain bearish until it does not close above Rs.5170 mark. Sell-on-rise strategy is suggested for near term traders." she added.
Meanwhile, US President Obama has warned US Congress that they must hike the debt ceiling or risk a "self-inflicted wound on the economy."
On a latest note, the Republicans in US Congress have started to push for prioritizing payments, if at all the situation of debt default arises. Pay the debt first and then only pay your soldier is the stand, analysts say.
“Payment prioritization doesn't stop payments, it just delays them. Then the aggrieved party sues the government, and probably wins, and it turns into a bloody mess," Keith Hennessey, now an economist at Stanford, said in a blog post this week and was quoted by Reuters as saying.
The White House has ruled out any negotiations when it comes to the debt ceiling issue. The US Congress is divided on the debt-ceiling issue and the Republicans are seeking spending cuts in return for raising the debt-ceiling.
On the NYMEX, crude oil for delivery on March 13 was spotted trading at $93.76 a barrel, a gain of $0.04 or 0.04% as of 06.40 PM IST. On the ICE Futures Europe, Brent crude oil for delivery on the same date was seen trading at $109.77 a gain of $0.14 or 0.13%.
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