Saturday, March 24, 2012


Iran tensions coupled with hope of amicable resolution of Greece crises have given support to the crude oil prices. Oil has climbed this year amid concern that sanctions against Iran will lead to military conflict in the Middle East, where more than half of the world's crude reserves are located. Oil may get support from a reduction in OPEC supplies. The Organization of Petroleum Exporting Countries will reduce crude exports by 0.6 percent this month as seasonal refinery maintenance in Asia erodes demand, according to tanker-tracker Oil Movements. Also crude oil prices are susceptible to profit booking at higher levels as negotiations between nuclear powers and Iran can reduce tension. Iran's Supreme Leader Ayatollah Ali Khamenei welcomed the comments by President Barack Obama that there is room for diplomacy in the international community's standoff. Crude oil can trade in range of 5100-5500 in MCX. Natural gas prices continue to register fresh lows in MCX and are expected to trade in range of 110-125 in near term. Forecasts for mild March weather that was expected to limit demand and concerns over record high U.S. inventory levels continue to keep the natural gas prices on back foot. The weather forecaster added that it sees no change to a "super-warm" outlook for the next 11-to-15-days, with the entire continental U.S. except for the west coast expecting much higher than- normal temperatures.