Commodity Trading Tips for Crudeoil by Kedia Commodity

Ajay Kumar Kedia 18 July 2013

Crudeoil yesterday settled up 0.85% at 6295 slightly higher after the US EIA said in its weekly report that US crude oil inventories fell by 6.9mbls in the week ended July 12, blowing past expectations for a decline of 2mbls. Total US crude oil inventories stood at 367.0mbls as of last week. The report also showed that total motor gasoline inventories increased by 3.1mbls, confounding expectations for an decline of 0.5mbls. Crude oil also got a small lift after the Fed's Beige Book business survey, which encompasses the central bank's 12 regional banks, showed manufacturing expanded in most regions since the last report. The report showed modest growth across 11 districts with Dallas showing strong growth. In other economic news out Wednesday, the Commerce Department said US housing starts fell 9.9% to a seasonally adjusted annual rate of 836,000 unit in June, the lowest reading since August 2012. Also Bad weather was cited as one of the reasons for the slack reading. Meanwhile, Angola, a member of the OPEC, forecast its daily output for September will be 1.67mbls, well below the 2mbls per day target. Protesters occupying Libya's eastern port of Zueitina, halting oil exports but allowing maintenance work, will not leave until their demands for jobs are met, one of them said on Wednesday. Technically market is under short covering as market has witnessed drop in open interest by -7.73% to settled at 32974 while prices up 53 rupee, now Crudeoil is getting support at 6255 and below same could see a test of 6215 level, And resistance is now likely to be seen at 6324, a move above could see prices testing 6353.