Crude oil above $60

Updated: Nov 29 2006, 08:52am hrs
The market slid slightly in the initial trading session on feeble demand from the jewelers and traders booking their profits on gold and silver, but was back on its feet as soon as the US data of durable goods were released. The highly awaited release of US data turned out to be harmful for the dollar against that of euro and spurred a rise in precious metals. Gold and silver were trading at $638.5 and $13.50 an ounce in the international market. MCX futures gold benchmark contract traded at Rs.923 per gram and silver at 19.80 a gram.

Crude oil has remained strong so far, this week, owing to the emerging geo political predicaments and the possibility of OPEC cartels crude oil production cut this December. The unrest in Nigeria has made the major Italian oil company ENI to stay away from exporting crude oil from the country, which is Africas biggest oil producer. The problems in Lebanon and the recent bombings that took place in the main oil distribution center of Iraq are also supporting the prices firmly.

Crude oil was priced at $60.67 a barrel in the international market and the MCX futures contract was at Rs 2,716 a barrel. Natural gas shared the glory of crude oil and was trading actively above $8 per mmbtu in the international market. Base metals lost its shine today as it traded down in the market. The demand of durable goods in USA dropped significantly and resulted in a slump in copper and zinc prices. Copper was priced at Rs.309.95 and zinc at Rs.200 per kg in MCX futures benchmark contract.

MARKET WATCH

On Tuesday pulses traded range bound and closed in red. The urad desi January contract marginally declined by 0.44% to Rs 3,364 due to poor buying support from the spot market and weak demand from millers. Chana January contract witnessed firm trends despite news of imports and finally closed at Rs 2,860.

Tur January contract was down by 0.41% and closed at Rs 1,951 on improved arrivals in the spot markets. Guar seed January contract was also down by 0.64% and closed at Rs 2,158 on lack of demand from processors. Refined soy oil January contract eased down by Rs 1.08 and closed at Rs 480 taking clues from choppy trade in Malaysian palm oil futures in BMD. Soybean January contract declined similarly by 1.62% and closed at Rs 1,428 despite firm sentiments in cash markets.