Commodities round-up: Crude oil price off 7-year high

The crude oil price is USD 3 off the high, but USD 92-93 per barrel is still holding.

There is no clarity on the number of troops returning (Russian troops), there are reports of shelling in the Donetsk area, also Ukraine has reported to the Defense Ministry and to banks subject to cyber-attack. So it is becoming an everyday market.

Markets will react on a daily basis, but for the crude oil price, it is believed that USD 85-90 per bbl is the range that could be a strong support area because US crude inventories declining even as the Iran nuclear deal is progressing well; how soon that come into the markets in sense of supplies is still being watched out for.

Libya is yet another area where oil workers have threatened to shut the export terminal by the end of February. So there is just too much happening in the markets to see a complete selloff in many of these commodities, including crude oil.

It is also the reason that gold price selloff has not been seen. It has come nearly USD 20-25 off its high but still holds the USD 1850 per ounce mark.

So most commodities have come off their highs but have not gone for a selloff.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.