DEC 19 FRIDAY

FUNDAMENTAL SCENARIO

US Crude prices dropped more than 9 % to $ 36 a barrel

on Thursday as slumping demand and swelling US inventories

offset OPEC record supply cut agreement.

The OPEC on Wednesday agreeded to reduce output by

2.2 million barrels per day from January to counter

oil's collapse from record highs .

Oil has dropped 33 % this month even as OPEC agreed to its

largest production cuts in more than a decade even as

traders speculated that falling demand would outweigh

reduction.

Crude for Jan expiry under the MCX India might see

resistence at Rs 2160 levels while the support can

be seen at Rs 1990 levels.

OUTLOOK

World wide demand for fuel is falling more than expected.

Even the OPEC cut was much bigger than expected it

wont be supportive for the market.

The market can go down to $ 30 .We are still in the

state when the market might still be searching for

the bottom.