Commodity Trading Tips for Crude oil by KediaCommodity

Crude oilCrudeoil settled up 0.54% at 6337 shot up and recovered from the day's low after congressional Republicans offered to temporarily raise the debt ceiling provided the White House discusses ways out of a fiscal impasse that has closed the government. In the US earlier, House Speaker John Boehner said Republicans would offer a temporary increase in the debt ceiling in exchange for dialogue with President Barack Obama on budget and deficit issues. The White House said it would consider the offer and was awaiting details. Hopes that talks will take place and end a government shutdown and avoid defaults sent oil prices rising, as fiscal uncertainties have threatened to slow broader growth, which could crimp demand for fuel and energy. Congressional inability to agree on a spending package closed the government on Oct. 1. US Treasury Secretary Jack Lew reiterated Thursday that the US will reach its debt ceiling on Oct. 17 and warned that the political crisis is starting to hurt the economy. Energy markets shrugged off a report by the Department of Labor showing that US initial jobless claims rose to 374k last week, an increase of 66,000 from the previous week's unrevised figure of 308k. Earlier this week US EIA said in its weekly report on Thursday that US crude oil inventories rose by 6.8mbls in the week ended Oct. 4, well above expectations for an increase of 1.5mbls. Total US crude oil inventories stood at 370.5 million barrels as of last week. The report also showed that total motor gasoline inventories increased by 149kbls, below expectations for a gain of 1.3mbls. Technically market is getting support at 6243 and below same could see a test of 6148 level, And resistance is now likely to be seen at 6400, a move above could see prices testing 6462.

Trading Ideas:

Crudeoil trading range for the day is 6148-6462.

Crude oil rose after the seizure of Libya's prime minister punctured confidence that its oil exports would return smoothly to normal.

The OPEC nudged up its 2014 global oil demand forecast by 1.0 mbd to reach 90.8 mbd

Libya's oil output has risen to 700,000 bpd, after falling at mid-year to its lowest since country's 2011 civil war as strikes blocked most oilfields and ports