Crude Oil Update:
Crude oil futures prices have come under pressure below Rs.5060/bbl in MCX platform.
European equities opened in a lower note driven by the core bearish sentiment of European debt issue. The seventeen nation currency Euro has come under pressure. Altogether these factors might be weighing on oil prices. Chesapeake Energy Corporation, US will be declaring its second quarter result tonight after US market close ,which is expected to come lower than prior quarter. Thus, lower profit of upstream industry might be adding pressure on prices.
Appreciation of Indian rupee in MCX is another factor to keep oil in downside.
However, we may expect oil prices to gain some points as Saudi Arabia oil company Aramco , world’s largest crude oil exporter have increased to premium price for light sweet crude oil exporting to US, which may support WTI oil prices to gain.