Commodity Tips: Crude oil futures jumped by 1 per cent during late
morning trade in the domestic market on Monday tracking a firm trend
overseas as a softer dollar following Friday’s dismal US jobs data
bolstered the appeal of the energy commodity as an alternative asset.
Softer greenback makes oil cheaper for those holding other currencies, thus lifting demand.
The dollar was languishing at the lowest levels in nearly a month after
data showed that American employers added the fewest jobs since
September 2010 in May 2016, pushing back bets of a US Federal Reserve
interest rate hike at least until September.
At the MCX, Crude oil futures for June 2016 contract were trading at Rs.
3,286 per barrel, up by 1.01 per cent, after opening at Rs. 3,280,
against the previous closing price of Rs. 3,253. It touched the
intra-day high of Rs. 3,295.
