Crude Oil: Today morning, oil prices are trading at
$94.7/bbl (-0.07%) in international market. This might be a technical
correction on oil prices driven by Euro-zone economic concern related to
Cyprus bailout. Most of the Asian equities and other asset classes are
trading down on fear that the bank restructuring plan to be employed in
Cyprus could be used in other European nations which will lead to lower
liquidity. As we proceed for the day, we expect oil prices to recover
from its marginal loss and trade on higher side with an eye on BRIC
summit starting from today. The group of leading emerging markets
(Brazil, Russia, India, China and South Africa) is expected to establish
a development bank that will aim at reforming the existing political
and economic world order. Secondly, Bank of Japan have kept the long
term bond buying options with 2% inflation target to be achieve in two
years. Thus, speculation of easing from Japan may continue to support
oil to take positive cues. There are no major economic releases
scheduled from Euro-zone today. So, concern related to Cyprus bailout
may limit gains in oil prices during European hours. From the US,
economic releases in the form of durable goods orders, manufacturing
index and new home sales may show a sign of positive growth in economy.
This may support oil prices to trade on a positive trend during the US
hours. Technically, we suggest remaining on buying side for the day
I got to learn important updates on crude oil here. There are many factors global as well as domestic which are responsible behind price fluctuations on different commodities. For best market trading tips contact epic research.
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