energy intraday

Energy




Oil made a record high at $126.27 head of the weekend with no-one willing to sell into a rally that has little sign of easing as the market heads into the U.S. driving season in late May.



Prices have rallied for over a week to a series of record highs, the latest spike due to Goldman Sachs analysts this week, who predicted prices will rise as high as $150 to $200 a barrel within two years. That forecast has driven much of oil's gains in recent days, as well as a tight supply outlook and some rising demand.



The dollar, meanwhile, fell against the euro Friday, attracting investors who view commodities such as oil as a hedge against inflation. Also, a weaker dollar makes oil cheaper to investors overseas



Oil vaulted above the psychological 100-dollar mark last January and has since jumped above 110 and 120 dollars, as the market was also energised by the weak dollar and solid demand from Asian powerhouse economies China and India.



Prices continued to bolt higher on Friday after the OPEC cartel insisted the market was well supplied and driven by speculators.



The 13-member OPEC produces about 40 percent of the world's oil, with current output at about 32 million barrels per day. El-Badri also maintained OPEC's stance that oil-market volatility has been driven by financial market developments and the increased flow of speculative funds into oil futures.

The turmoil in some global equity markets and the considerable depreciation in the U.S. dollar have encouraged investors to seek better returns in commodities, particularly in the crude oil futures market, This has driven prices higher

Natural gas advanced as crude oil surged to a record and the euro climbed against the U.S. dollar. Oil touched $126.27 a barrel, the highest since futures began trading in 1983. The 15-nation currency versus the dollar today extended its gain from an eight-week low. Returns from investing in commodities have surged this year, led by natural gas, as investors sought alternatives to stocks.

Norway, the world's fifth-largest oil exporter, said crude production in April fell from a month earlier. Output dropped to an average 2.097 million barrels a day from a revised 2.140 million in March

MCX Crude Oil May

Technical Outlook:The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative

Market is expected to remain positive and the resistance is seen at 5259 levels If market breaches 5259 may see prices to take further upside towards 5306 and 5378However if it holds back below 5140 may see prices to fall further on today. Major support is seen at5068 and 5021

Recommendations-MCX Crude Oil May: Buy at 5195 Target 5280 and 5325 Stop loss 5135



MCX Natural gas May

Technical Outlook:The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative

Market is expected to remain positive and the resistance is seen at 484.00 levels. If market breaches 484.00 may see prices to take further upside towards 490.00 and 499.00 however if it holds back below 469.00 may see prices to fall further on today. Major support is seen at 460.00 and 454.00

Recommendations-MCX Natural Gas May: Buy at 479 Target 486 and 490 Stop loss at 473


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