MCX crude oil prices witnessed gains on Wednesday mainly on the back of dollar weakness. As a weaker dollar makes dollar denominated commodities look cheaper for holders of other currencies.
However, unexpected sharp rise in US crude oil inventories resisted further rise in oil prices yesterday. Oil touched an intra-day high of $89/bbl and closed at $87.58/bbl on Wednesday. September Brent crude prices rose more than 1 percent to $110/bbl levels.
We expect crude oil prices to come under pressure today as rising worries over global economic recovery would lead to demand concerns. However, dollar weakness may cushion sharp downside.
However, unexpected sharp rise in US crude oil inventories resisted further rise in oil prices yesterday. Oil touched an intra-day high of $89/bbl and closed at $87.58/bbl on Wednesday. September Brent crude prices rose more than 1 percent to $110/bbl levels.
We expect crude oil prices to come under pressure today as rising worries over global economic recovery would lead to demand concerns. However, dollar weakness may cushion sharp downside.
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