comex crude outlook

Crude oil futures rose yesterday and touched 102.24 a barrel and closed up as on growing U.S. and Nigerian supply concerns even as the dollar jumped on an emerging U.S. government plan for a comprehensive solution to the financial crisis.

According to the U.S. Federal Reserve, it would expand its reciprocal currency agreements to $180 billion, boosting its existing swap lines with the European Central Bank and Swiss National Bank and setting up new currency swap arrangements with the Bank of Japan, Bank of England and Bank of Canada.

In a surprise move on last Wednesday, OPEC agreed to revise its complex output targets and cut supplies by half a million barrels per day.

The economy in the United States and Europe is turning bad and people realize that the growth in the economies of China, India and Brazil will not be enough to offset what looks like a world economic contraction also added pressure in oil prices.

Light, sweet crude oil for October delivery in the New York Mercantile Exchange traded in the range $102.24 - $95.73, before settling at $98.02a barrel yesterday.

Crude has fallen sharply since reaching an all-time high of $147.27 a barrel on July 11 as growing global economic problems and high fuel prices have cut demand in top consumer the United States as well as Europe.

Oil price had touched an all-time high of $147.27 a barrel on 11th July but has corrected from there in the succeeding weeks.

Crude Oil (DWTI oct.)

Crude oil price remains weak below $105. Supports are $98.50, $87 Resistances are $110.40, $115.60 and $122. If trade and sustain above 105.50, expecting more uptrend

DWTI (oct) traded in the range $101.80 - $95.80 and closed at $97.54.

TECHNICAL OUTLOOK (Intra-day)

DGCX Crude (Aug) - Bullish above $98.50; bearish below $97.80


MCXARUN
9994500540