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  • MTECHTIPS:-Energy Preview: MCX Crude To Recover After Testing Lows Near Rs 2900 Yesterday

MTECHTIPS:-Energy Preview: MCX Crude To Recover After Testing Lows Near Rs 2900 Yesterday

MTECHTIPS:-Energy Preview: MCX Crude To Recover After Testing Lows Near Rs 2900 Yesterday

WTI Crude oil neared its six month lows yet again yesterday as poor US economic data and a weak opening on the DOW hit the sentiments. US Consumer spending in June rose by the smallest amount in four months. Consumer spending edged up 0.2% in June. Overall purchases of durable goods, the category that covers autos, fell 1.3% in June. US ISM manufacturing PMI came in at a less than expected 52.7 for July, indicating that the economy might not be growing as strongly as previously thought. DOW dropped around 200 points in intraday moves and the WTI Crude futures neared $45 per barrel mark. A modest recovery has emerged in the commodity on bargain buying today and the counter is quoting at $45.55 per barrel, up 0.84% on the day. MCX Crude oil futures tested a low near Rs 2900 per barrel in last session and can track the upside in global futures today. . Oil eased last week, cutting short a recovery from six month low after oil producing cartel OPEC signalled that crude production would not be cut despite global oversupply and falling prices. Poor Chinese economic data is set to keep oil under check as well. A gauge of China’s factory activity slipped in July, pointing to further sluggishness in the key manufacturing sector of the world’s second-largest economy. China’s official manufacturing purchasing manager’s index dropped to 50.0 in July from 50.2 in June, the National Bureau of Statistics said Saturday. A reading of 50 is right at the cutoff point between expansion and contraction compared with the previous month. Oil failed to rise on Friday even as the US
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