crude trades weaker weighed down by weakness in equity markets and strength in US dollar. Equity markets are under pressure following Fed’s downbeat assessment for the US economy. Meanwhile dollar has strengthened as Fed did not announce further liquidity infusion in the market and as twist in the Fed balance sheet is expected to result in higher short term rates. However crude oil may gain support from EIA report which noted a bigger than expected decline in US crude oil stocks. Trend in equity and currency markets will continue to determine trend in crude oil prices. Focus today will be on US weekly jobless claims and leading indicators data.
Natural Gas- MCX Natural gas may note some decline tracking cues from international exchange. NYMEX gas trades weaker weighed down by mixed weather forecasts, weakening outlook for the economy and expectations of another bigger than average increase in US working gas stocks. EIA is expected to note a 91 Bcf increase in US natural gas stocks which is higher than the 5-year average increase of 72 Bcf. Focus today will be on weekly inventory report. Apart from it, focus will also be on US economic data and storm activity in the Atlantic. Support for MCX Natural gas Sept contract is seen at Rs.177 while Resistance is seen at Rs.185.
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