Commodity Trading Tips for Crude oil by KediaCommodity

Crude OilCrudeoil settled up 1.3% at 6288 as a looming deadline to head off a U. S. default stoked worries about the outlook for demand. U. S. Senate leaders said they were nearing a deal to end the government shutdown, which began on Oct. 1, and to raise the U. S. debt limit. As well, the market is beginning to realize that the rate at which stockpiles at the Cushing, Oklahoma, storage hub, the benchmark delivery point for the U. S. oil futures contract, are being drawn has slowed in the last two weeks. Stockpiles of crude at Cushing rose by more than 800,000 barrels last week, energy intelligence provider Genscape reported. In China, the world's second largest oil consumer, an unexpected decline in exports, reflecting weak global demand was moderately offset by data showing China's crude oil imports rebounded in September to a record high. The U. S. Energy Information Administration will not publish its weekly oil inventory data this week for the first time since 1979 due to a lack of government funding. Oil also found support after China reported that it imported a record-high 25.68 million metric tons of crude in September, or 6.28 million barrels a day, up 19.8% from August. Oil prices rose, however, on sentiments the commodity was oversold, especially due to bullish data out of Europe that showed that industrial production in the euro zone rose 1.0% in August, beating market calls for a 0.8% increase. Technically market is under fresh buying as market has witnessed gain in open interest by 0.94% to settled at 10200 while prices up 81 rupee, now Crudeoil is getting support at 6216 and below same could see a test of 6143 level, And resistance is now likely to be seen at 6352, a move above could see prices testing 6415.

Trading Ideas:

Crudeoil trading range for the day is 6143-6415.

Crude oil rose as a looming deadline to head off a U. S. default stoked worries about the outlook for demand.

China's crude oil imports rebounded in September to a record high of 6.25 million bpd, up 28 percent on the year

The prospect of a debt default in one of the world's largest oil consumers has had an adverse effect on the demand outlook