Commodities » Energy

Nymex March Crude Oil prices declined almost 5% on Thursday

Contributed by Angel Broking

By Amar Singh, Reena Walia Nair (Angel Broking)

MARKET RECAP

Crude oil prices declined on Thursday and touched a low of $72.42/bbl as a stronger dollar coupled with concerns over demand from the US, the world’s largest energy consumer put prices under pressure. Markets remain concerned over the demand situation of crude oil amid concerns over global economic progress. Oil prices slumped almost 5% yesterday as debt woes in Europe led to strong gains in the dollar. A stronger dollar in turn made crude oil look unattractive for holders of other currencies. A surprise increase in US jobless claims fuelled further concerns about demand.

OUTLOOK

We expect oil prices to trade with a negative bias as:

-  Stronger dollar will put pressure on prices

-  Demand concerns in the case of crude oil is bearish

-  Concerns over global economic growth could add further concerns over demand

Today, we could witness sideways move in crude oil prices with support for NYMEX March Crude Oil is seen at $71.20/$69.45 level & resistance at $75.95/$78.95 levels.