Commodity Trading Tips for Crudeoil by Kedia Commodity
Crudeoil on MCX settled up 1.46% at 3325 gained tracking firmness from Nymex Crude which settled above $51 mark for first time in month supported by an unplanned production outage in the North Sea and expectations of a drawdown in U.S. crude and product inventories. In the North Sea, production of crude oil from Britain's 180,000 barrel per day Buzzard field was temporarily halted while repair work is carried out at an onshore processing terminal, noting normal output should be restored in the coming day or two. Earlier in the session, WTI dipped below $50, before oil futures regained their footing. Crude oil prices was also supported after a larger than expected draw in industry estimates of U.S. crude inventories and as investors noted political risk from the launch of a medium-range ballistic missile by North Korea ahead of a summit between U.S. President Donald Trump and Chinese President Xi Jinping this week that will discuss the Korean peninsula in addition to trade. Meanwhile Crude inventories in the US dropped a more than expected 1.83mbls at the end of last week, the API said, for the third decline in the past three months. Gasoline stocks down by 2.56mbls and distillates showing a decline of 2.09mbls, also down more than levels seen in estimates that expected crude inventories dropped by 435,000 barrels and distillates eased by 1.016mbls and gasoline supplies fell 1.422mbls. Supplies at the oil storage hub of Cushing, Oklahoma, rose by 1.34mbls. Now trader are eying for official data from the US EIA is due on Wednesday. Technically market is getting support at 3299 and below same could see a test of 3272 level, And resistance is now likely to be seen at 3343, a move above could see prices testing 3360.
# Crudeoil trading range for the day is 3272-3360.
# Crudeoil gained settled above $51 mark for first time in month supported by an unplanned production outage.
# Support seen as political risk from the launch of a medium-range ballistic missile by North Korea ahead of a summit between US and China.
# Crude inventories in the U.S. dropped a more than expected 1.83mbls at the end of last week, API said