Crude oil futures trading with good gains in the mid London business hours today with the dollar falling below 1.4000 Euro and the US equity futures also starting on a positive note.
In the currency markets, the euro was up 0.3% against the dollar at $1.4026 ahead of the decision from the European Union on Greece's plan. However the dollar was higher against the pound following the weak service sector data. It rose above 1.5900 mark against the pound.
U.S. stock market futures were marginally higher on Wednesday ahead of some key economic data. The European and the Asian markets also traded broadly higher today.
MCX crude oil futures witnessed a major spurt since the end of last week. It jumped more than 6.5% or Rs 220 to Rs 3592 per barrel today from its Saturday's low of Rs 3372. A break of Rs 3697 may take it upwards to Rs 3640. Otherwise it may fall to Rs 3520 levels and Rs 3480 levels.
WTI oil futures jumped at $ 77.89 up 66 cents per barrel. It may face a next resistance near $ 79 and $80 levels.
The oil futures have been falling since January 11 when China the major oil user initialed the monetary tightening measures, raising concerns that it might hurt the economic growth and demand for oil. It had fallen to nearly $72 a barrel.
Economic data on tap includes the ADP national employment report, due at 8:15 a.m., which precedes Friday's more closely followed nonfarm payroll data from the government. Also due, the ISM service sector index for January will be released at 10 a.m. Eastern.
