MTECHTIPS

MTECHTIPS:-Crude Oil: It all depends on how crude Syria-Turkey hostilities become

Crude oil markets are expected to closely track the developments associated with Turkey and Syria for the medium-term. Iran is also a factor as sanctions net by western governments close in with disturbing alacrity.Crude Oil prices are tad up on India's MCX with rupee gaining strength against the greenback. The commodity for October delivery opened at Rs.4846 and was seen trading at Rs.4907, a spike of 0.35% in the initial hours of the trade.On the ICE futures, Europe, Brent crude oil for November delivery dipped 0.29% and was found trading at $115.49 a barrel on 8.30 IST. On the NYMEX, crude oil for November delivery traded at $92.22 a barrel a drop of 0.17%. The gap in prices or the spread between two benchmarks stand at $23.27 a barrel.“The potential for a blow-up in the Middle East is being reflected in that persistently wide spread between Brent and WTI,” saidMichael McCarthy, a chief market strategist at CMC Markets in Sydney toBloomberg. “Jobless claims were better-than-expected.” US job markets have seen number of people seeking unemployment dropped to 339,000 last week. This is the lowest in four years.The spread between Brent and WTI grades of crude oil has been the highest in a year. This is after Turkey grounded a Syria bound civilian aircraft from Russia with force that was later on found to carry munitions, as per Turkish sources.