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Friday, October 30, 2009

Crude Cracks Above $80 As GDP Boost Stays On

Traders continue to embrace risk appetite amid dollar weakness; latest spurt in the US GDP also proves beneficial 


Crude oil prices raced up yet again in Asian trades today, extending a rebound from the previous session as traders continued to embrace risk appetite amid dollar weakness and ideas that the latest spurt in the US GDP would bring about a substantial up tick in the demand for crude. 

Yesterday, Crude oil prices rose after the United States economy grew in the third quarter for the first time in more than a year. The US economy expanded at a 3.5% annual pace in the third quarter, as massive government stimulus helped drag the economy out of the longest and deepest recession since the 1930s, the Commerce Department estimated Thursday. 

New York's main contract, light sweet crude for delivery in December, added $US2.41 cents to $US79.87 a barrel. The counter added further gains today, edging above $80 per barrel mark and hitting a high of $ 81.21 per barrel as Asian markets swung sharply up. Dollar neared 1.4850 levels against the Euro, ensuring that the GDP stays on for the commodity. 

MCX Crude oil futures for November, meanwhile, are lingering into negative territory as the prices try to catch up the global cues amid a strong bout of strength in the Indian rupee. Rupee has jumped near 47 per US dollar levels following a rebound in the domestic stocks. The counter trades at Rs 3760, down Rs 6 per barrel or 0.16% from the previous close with 1.13% drop in the open interest. Watch out for a break above Rs 3765 to make the counter eye a target of 3781-90.
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