Crude oil surges on global supply concerns

NYMEX crude oil traded hit two and a half year high or $113.2 1/bbl last week mainly taking cues from increasing supply concerns due to unrest in the Middle East. In addition to this, weakness in the Us dollar arid upbeat market sentiments also helped prices to gain further. Prices rallied almost 4.5 percent in the last week and closed at SI 12.79/bbl. On the MCX, crude oil May contract surged around 3.5 percent and touched a high or 5O98/bbl and closed at 4964/bbl at the end or the week.
Saudi ready to supply Asia with more oil Top oil exporter Saudi Arabia is ready to supply Asia with more oil due to unmatched spare output capacity that made it to offset any rise in demand or drop in supplies.
Outlook
Crude oil prices are expected to trade higher today on account of weakness in the us dollar. But sharp gains will be capped as Gaddafi accepts peace plan including an immediate ceasefire which could ease the supply concerns in Libya.
Courtesy: Angel Commodities

(Source: http://www.commodityonline.com/futures-trading/technical/Crude-oil-surges-on-global-supply-concerns-23153.html)