Sure Shot Commodity Tips

Crude oil futures are trading below $88 mark in Asia electronic trades Monday following solid gains of 1% on Friday amid new hopes for progress on a deal for Greece and following the release of encouraging data out of Germany.

Light sweet crude futures for delivery in January are trading down 30 cents at $ 87.98 a barrel on the New York Mercantile Exchange. On Friday, it settled higher by 1% at $88.28 a barrel. On the week, it gained 1.3%, the third consecutive weekly advance.

Market sentiment improved after Greece’s Finance Minister said the International Monetary Fund had relaxed its debt-cutting target for the country, suggesting lenders were closer to a deal for a vital aid tranche to be paid. However, other sources involved in the talks cautioned that the funding gap was far bigger than Greece has suggested.

Investor confidence also strengthened after the German Institute for Economic Research earlier said that its index of business confidence improved to 101.4 in November from a reading of 100.0 the previous month, beating expectations for a decline to 99.5.

In the coming week, market participants will be focusing on Monday’s meeting of the euro group of finance ministers to discuss unlocking Greece’s next aid installment. Traders will also monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.

MCX December crude oil futures may open today’s session near Rs 4900 levels with support around Rs 4870 and Rs 4830 levels.