Commodities

Oil and natural gas daily review (January 22, 2013)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices increased by 0.2 percent yesterday ahead of the policy meeting of Bank of Japan which may declare stimulus measures to boost the economic growth.

Additionally, weakness in the DX also supported an upside in the oil prices. Crude oil prices touched an intra-day high of $95.48/bbl and closed at $95.47/bbl in yesterday's trading session.

On the domestic bourses, prices declined by 0.2 percent and closed at Rs.5,157/bbl after touching an intra-day high of Rs.5,175/bbl on Monday. However, depreciation in the Indian Rupee cushioned sharp fall in the crude oil prices on the MCX.

Outlook

In the intra-day, we expect crude oil prices to trade higher on the back of mixed global market sentiments along with weakness in the DX. Provision of aid to Greece is also expected to raise hopes that the demand from the region might improve. Appreciation in the Indian Rupee will cap sharp gains in prices on the MCX.