Oil dropped to the lowest price in almost five months in New York after U.S. crude stockpiles increased and Greek talks to form a coalition government collapsed, raising concern the region’s debt crisis will worsen.
On the MCX, oil prices declined by 0.9 percent after touching an intra-day low of Rs.5,003/bbl and hovered at Rs.5058/bbl yesterday. Significant support is seen around 4990 level and break below this could extend weakness towards 4960/4895 territory. On the contrary, expect a pullback towards 5055/5085 levels. Thrust past 5085 could propel prices higher towards 5125/5150 region.
In last few days selling pressure have been increased in crude oil. The market sentiments are showing a sell signal in crude oil. Positionally Immediate support for Crude oil is 4963. Strong resistance is looking in the Crude oil at 5158-5248.
