Commodity Trading Tips for Crudeoil by Kedia Commodity

Ajay Kumar Kedia 14 June 2013

Crudeoil yesterday settled flat at 5571 after two sessions of gains, recoiling from a three-week high hit a day earlier, on caution over demand and with stockpiles remaining high. In US economic news out the US Commerce Department said retail sales rose 0.6% last month after rising just 0.1% in April. Core sales excluding automobiles, gasoline and building materials, rose 0.3% in May after 0.2% increase in April. The Labor Department said initial claims for jobless benefits fell by 12,000 last week to 334,000. The US is the world's largest oil consumer and employment and consumer data are seen as integral parts of the oil equation. Bullish data on those fronts often gives traders reason to bid oil prices higher. However, with Fed tapering chatter running rampant in the current market environment, conventional wisdom may go out the window. Good data points could give the Fed to begin winding down its bond-buying program and that could hamper riskier assets such as Crude oil. Crude oil prices slipped a bit after the World Bank lowered its growth estimate for the global economy in 2013 to 2.2% vs 2.4%. Menawhile North Sea oil output from the main British and Norwegian streams is set to rise by just over 13 percent in July from June, largely due to the Ekofisk oilfields exporting again after maintenance ends. Also Iran votes on Friday in a presidential election unlikely to result in seismic shifts in its troubled relations with the West and Gulf Arab neighbours, but which could bring a softening of the confrontational style personified by outgoing president Mahmoud Ahmadinejad. Technically market is now getting support at 5539 and below same could see a test of 5506 level, And resistance is now likely to be seen at 5594, a move above could see prices testing 5616.