Oil Prices Likely To Open With Gains On MCX

Oil prices jumped in light trading last week after the government reported that consumer spending surged last month, raising hopes that the economy will weather the crisis roiling credit markets and that demand for oil and gasoline will strengthen.

Light, sweet crude for February delivery rose 45 cents to settle at $94.44 a barrel on the New York Mercantile Exchange. On MCX, Light Sweet Crude Oil was trading at Rs 3675 per barrel at the closure. The same closed the session at Rs 3683 per barrel. Crude Oil resistances are at 3710 levels.

While Oil prices were higher, trading volumes ahead of the holidays were about 25 percent of what they would be on a normal day. Crude futures have retreated from November's near $100-a-barrel level, as OPEC boosted supplies and several forecasters cut demand predictions.

Other energy futures also rose. January heating oil futures rose 1.96 cents to settle at $2.6091 a gallon, while January gasoline futures added 5.19 cents to settle at $2.3795 a gallon. January natural gas futures rose 5.3 cents to settle at $7.19 per million British thermal units. In London, Brent crude rose $1.58 to settle at $92.46 a barrel on the ICE Futures exchange.