Commodity Trading Tips for Crudeoil by KediaCommodity

Ajay Kumar Kedia 30 October 2013

Crude-Oil Crudeoil settled down -0.54% at 6057 as a higher-than-expected weekly stock build combined with declining worries about protracted disruptions to petroleum exports from OPEC member Libya. While US crude stocks rose by 5.9 million barrels in the week to Oct. 25, compared with analysts' expectations for an increase of 2.2 million barrels, data from industry group the American Petroleum Institute showed on Tuesday. Also Libya's crude oil exports have slumped to around 90,000 barrels per day, less than 10 percent of capacity, as protests have halted operations at ports and fields, but Libya's prime minister said on Monday exports from the eastern port of Hariga with a capacity of 110,000 bpd would resume after one week. Comments from the Federal Reserve's two-day policy-making meeting are expected later in the day, with the U.S. central bank expected to keep its economic stimulus as it waits to see more evidence of how the recent budget battle hurt the U.S. economy. Separately, the Labor Department reported that the country's producer price index contracted 0.1% in September, defying gains for a 0.2% gain. Cushioning oil's losses were market expectations for the Federal Reserve to keep its ultra-loose monetary policies unchanged at a policy meeting this week, including its monthly USD85 billion in bond purchases. Loose policies make oil an attractive commodity by weakening the greenback, thus bolstering the commodity's appeal on dollar-denominated commodities. Now crude oil is getting support at 97.40 and below same could see a test of 96.80 level, And resistance is now likely to be seen at 98.60, a move above could see prices testing 99.20. now Crudeoil is getting support at 6031 and below same could see a test of 6004 level, And resistance is now likely to be seen at 6096, a move above could see prices testing 6134.