Crude Oil Updates

Advsiory Data:-

WTI Crude oil futures stumbled under $92 per barrel amid weak global equities and persistent selling pressure. Global markets pared their recent gains as investors shriveled on the Japan -China row and latest set of poor manufacturing numbers from major global economies. European growth fears also came back to haunt investors and the major indices in Europe are down around 1% right now. Asian stocks slipped as Japan's prime minister warned Beijing that anti-Japanese protests in China could further hurt the Chinese economy. Spain also reportedly stated that it is in to rush to seek outside financial aid, pulling the Euro towards 1.2900 mark against the dollar. WTI Crude failed to hold on above $93 per barrel amid these cues and broke under $92 in Europe to trade at $91.89 per barrel right now, down $1 on the day.

For the local futures, gains in Rupee acted as a further depressing factor. The Indian currency hit its four-month highs yet again today as local equities soared amid favorable global environment and the slew of measures taken by the government on the domestic policy front. The currency neared 53 per US dollar in the morning trades today before giving back some of these gains as the benchmark equities slipped in late trades.

The German Ifo index, a key gauge of business confidence, dropped for a fifth month in a row in September. The companies surveyed are again less satisfied with their current business situation. They also expressed greater pessimism about the future. The curbing forces on the German economy continue to prevail. The index clocked reading of 101.4 for the month against a maket forecast of 102.3. The Ifo expectations part of the index, which tracks outlooks by German business managers for the next six months, hit 93.2 in September versus a reading of 94. 2 for August. The Ifo is based on a survey of 7,000 firms in manufacturing, wholesaling and retailing. The index's decline marked its fifth successive fall.

Greece faces a budget shortfall of about 20 billion euros ($26 billion) to satisfy international conditions for emergency aid, almost double previous estimates, German magazine Der Spiegel reported Sunday, according to media reports. The US Dollar edged up further today on these cues, broadly maintaining its positive movement from the lowest level in five months as global equities retreated after the recent enthusiasm after an array of week economic data last week and Spain reportedly stated that it is in to rush to seek outside financial aid. The greenback had tested lows near 1.3200 against the Euro amid a massive rise in global equities and commodity prices in last few days. The dollar tested levels under 1.2900 agasint the Euro as stocks slid across Europe.
The global markets jumped on Friday on reports that the European officials have chalked up a bailout plan for the debt-laden Spain. However, Spain has reportedly stated today that it is in to rush to seek such help and has in turn inflicted some selling pressure on risky assets. Crude had jumped back above $93 amid these cues but faced a sell off right from the start today. The local MCX Crude futures tested nearly Rs 4900 and edged up in afternoon trades. The counter quotes at Rs 4928, down Rs 40 per barrel or 0.81% on the day with a massive 12% jump in the open interest.