Crude oil continued to remain under check as the pressure on the global economic front left the major asset classes reeling and lack of risk appetite ensured the late gains in the oil prices last week were quickly let off.The global equity markets started the proceedings in the new week on an unenthusiastic note witnessing a poor performance in the last week.US light, sweet crude for December delivery fell to a low of $55.60 as news that Japan fell into recession highlighted investor fears of a global economic slowdown that will hurt crude demand.
The inventories of the commodity are seen at a comfortable level in the major developed economies and the demand destruction in the face of the severe pain in the equity and credit markets is expected to keep the possibilities of any major rebound in the oil prices quite limited.We expect the floor of $55 to hold in today' trade and MCX Crude oil for December would find support around Rs 2805.
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