Crude oil updates

Crude oil futures extended its last week’s rally, approaching the $88 a barrel mark in Asia electronic trades today.
In Asia today, the Japanese stocks led broad gains for Asian markets as high risk appetite as yen extended weakness, while mainland Chinese shares underperformed amid concerns of a structural economic slowdown.
South Korea’s Kospi improved by 1%, Hong Kong’s Hang Seng Index advanced 0.4%, Australia’s S&P/ASX climbed a modest 0.2%, and Taiwan’s Taiex inched up 0.1% in choppy trade. On the downside, China’s Shanghai Composite Index fell 0.5%.
Light sweet crude futures are trading at $87.56 up 64 cents per barrel on the New York Mercantile Exchange today. On Friday, it rose 1.45% to settle at $87.12 a barrel. On the week, it advanced 0.65%, the second consecutive weekly advance.
Crude oil futures rallied nearly 1.5% on Friday, as escalating violence between Israel and Hamas militants in Gaza underlined concerns about a wider conflict that could disrupt supplies from the region.
Geopolitical tensions in the Middle East increased after Israel assassinated a senior Hamas commander on Wednesday, sparking a conflict between the two parties. Palestinian missiles struck areas around Jerusalem and Tel Aviv on Friday, while Israel extended its bombing of Gaza.
Investors were concerned that neighboring Muslim countries, specifically Iran, could be drawn into any potential conflict, which could impact oil exports from the region.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the seven weeks left before the January 1 deadline.
Elsewhere, the euro remained under pressure amid disagreements between the International Monetary Fund and Europe on how best to reduce Greece’s debt to manageable levels. A decision on disbursing the country’s next tranche of aid, worth EUR31.5 billion, has been postponed until 20 November.
In the coming week, market participants will be focusing on developments relating to the U.S. fiscal cliff, as well as Tuesday’s meeting of the euro group of finance ministers to discuss unlocking Greece’s next aid installment. Meanwhile, oil traders will also focus on ongoing tensions between Israel and the Palestinians in Gaza.
MCX December crude oil futures may open today’s session near Rs 4865 levels with resistance near Rs 4900 levels.

Posted in: Commodity Copper News,Commodity Gold Updates,Crude oil updates