Crude oil prices gained on Monday and closed above $81/bbl as markets became optimistic over economic growth and its impact on energy demand. Prices also gained on optimism fuel demand will increase amid freezing temperatures and improved prospects for an economic recovery in the U.S., the biggest energy consumer. Prices touched a high of $81.79/bbl yesterday amid forecast the worst U.S. employment slump since World War II may have almost ended in December. Cold weather also prompted speculation stockpiles of winter fuels, including heating oil and natural gas, will decline further. Oil prices will take cues from the development on the economic front and cold weather in the US. In the short-term, oil prices could continue to trade with a positive bias. Oil prices could continue to trade with a positive bias as colder weather in the US and hopes of demand recovery are bullish for the commodity. A weaker dollar could provide additional upside support to oil. Prices have managed to trade above $80/bbl and a weaker dollar could make the commodity look attractive. We expect oil prices to trade with a positive bias today. Today, we could witness sideways move in crude oil prices with support for NYMEX January Crude Oil is seen at $80.30/$78.90 level & resistance at $82.45/$83.25 levels. Natural gas price will take cues from oil prices. Natural gas MCX January contract has major support at Rs. 256 & resistance at Rs.279 levels.

Source