Angel Commodities has come out with its report on Crude oil. According to the research firm Crude prices to witness weak performance in H2 CY12. The Nymex light sweet crude oil near-month contract is currently trading around $85/bbl and prices have recovered significantly from the low of $77.69/bbl touched during the end of June’12. The commodity opened the year above $100/bbl, sustained closing above this level for the first-quarter of this year and slipped significantly thereafter on the back of increase in worries associated with the European debt crisis. Towards the end of May’12, oil prices have declined below $90/bbl levels and the month of June’12 witnessed the worst downtrend on account of heightened economic risks along with worries over demand growth for crude oil.
Average monthly Nymex crude oil prices have witnessed a significant decline since the start of the year. For the month of January’12, prices averaged around $100/bbl, which increased further to $106/bbl, post which the decline began. For the month of June’12, average monthly prices of the Nymex nearmonth futures contract was around $82/bbl. Although the downtrend was similarly seen in the MCX crude oil futures contract, sharp decline post the month of March’12 was prevented on account of Rupee depreciation. During January’12, the MCX near month futures contract averaged Rs5150/bbl and increased further to Rs5370/bbl; thereafter a fall in prices was seen and for the month of June’12 prices averaged Rs4630/bbl. For the month of June’12, Nymex crude oil prices declined around 2 percent and during the same period prices touched a low of $77.28/bbl.
Source: Angel Commodities