Crude rise sees punters in action
Crude oil, which has seen a $10 jump per barrel on Nymex in the last three weeks, has seen a considerable rise in the local markets as well.
By Deepa Krishnan, TNN |
MUMBAI: Crude oil, which has seen a $10 jump per barrel on Nymex in the last three weeks, has seen a considerable rise in the local markets as well. The Indian punters, who were keen to exit the market, are quickly putting their money back into the ring to cash in on the gain.
A look at the data for the March contract on MCX indicates a 9.5% rise in the price since January 19, following the slump in prices on Nymex to $49.9 per barrel. This is the lowest level since 2005. Crude for March delivery on Nymex is trading above $59 per barrel.
The March crude contract on MCX rose from 2,422 per barrel to Rs 2,654 between January 19 and February 5, ���07. The volumes also jumped from 247 bbl to 466.10 bbl. The open interest also increased from 2,089 lots (one lot = 100 barrels) to 2,398 lots. A rising open interest along with rising prices and higher volumes indicates that there is fresh buying taking place in the market.
t saw a 13% rise in the price between January 18 and February 5 from Rs 2,311 to Rs 2,615 per barrel. The open interest fell from 12,770 lots to 8,728 lots. The volumes rose from 3,376.40 bbl to 5,008 bbl. The declining open interest with rising prices indicates that people who were earlier short in the market are now covering their positions by buying back contracts.
Ashish Karel, research analyst, Man Financial said, ���Speculation of cold weather will lead to further demand for heating fuel in the US, which is the world���s largest energy consuming nation. According to the US national weather services, below average temperatures will last through February 18, which would result in the stocks of heating fuel squeezing out of US inventories.���
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According to MAPE Admisi Commodity Research, crude stockpiles in the US are not not expected to drop drastically this week.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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