By Amar Singh, Reena Walia Nair (Angel Broking)

MARKET RECAP

Crude oil prices declined more than 1% in the last week and touched a low of $69.50/bbl as a stronger dollar exerted pressure on prices. Markets remain concerned over the demand situation of crude oil amid concerns over global economic progress. Oil prices could continue to face downside pressure as poor fundamentals coupled with concern over global economic recovery could add pressure on the downside. If concern over debt situation in the Eurozone continues to dominate financial markets then demand for riskier investment assets could decrease, leading to downside pressure on crude oil prices.

OUTLOOK

We expect Crude oil prices to trade with a negative bias as:
-      Stronger dollar will put pressure on prices.
-      Demand concern 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 $70.80/$69.30 level & resistance at $72.40/$73.80 levels.