MCX Crude Witnesses Further Fresh Buying

Crude...........

MCX Crude oil futures continued to rise, adding to its recent string of gains though the global prices are showing signs of fizzling out from their two-week highs. The Indian Rupee plummeted to a fresh all time low today and pushed the locally traded MCX Crude futures to a high near Rs 5570 per barrel. The contract witnessed handsome gains last week on fresh buying and the momentum remained the same today even as global prices came to a stall. The WTI Crude oil futures came off highs above $96 per barrel, extending a pattern seen in last session. The contract quotes at $95.45, down 58 cents per barrel on the day.

The global stocks were stirred today after meek economic data from China over the weekend. The Chinese exports edged up by just 1% in May from a year earlier, after rising at 14.7% in April. The imports slipped by 0.3% from a year earlier, compared with a 16.8% rise in April. The industrial production also slowed slightly in May with a 9.2% increase for the year, compared with a 9.3% gain in April.

Meanwhile, economic growth is showing signs of edging up in most big economies, but appears to be firming markedly only in the United States and Japan, the Organisation for Economic Cooperation and Development (OECD) said today. Among the major emerging nations China and Brazil are ticking along at trend rates, while growth in Russia is losing momentum and in India it remains below par, notes the OECD.

The Chinese stocks led a mostly lackluster session for Asian equities while European markets are trading mixed. Crude could correct further in evening trades if the recent break sustains. MCX Crude oil futures added further to their longs, which has been a persistent feature of the trade over last one week or so. The counter quotes at Rs 5548, up Rs 35 per barrel or 0.63% on the day with 8% increase in open interest.
Source by Commodity Insights