Commodity Trading Tips for Crude oil by KediaCommodity

Ajay Kumar Kedia 22 August 2013

Crudeoil settled down -1.66% at 6709 fell sharply to hit a one-week low, amid growing speculation the Federal Reserve will taper its bond-buying program at the central bank's upcoming meeting in September. Investors also looked ahead to the release of key US weekly supply data to gauge the strength of oil demand from the world's largest consumer. Investors remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Oil traders also looked ahead to the release of fresh weekly information on US stockpiles of crude and refined products to gauge the strength of oil demand in the world's largest oil consumer. While Goldman Sachs said in a report Monday that Brent prices could climb to USD115 a barrel in the "very near term", citing supply disruptions in Libya and Iraq. Also Market players also remained focused on the turmoil in Egypt, amid concerns that the escalating tensions would lead to the closure of the Suez Canal, which transports approximately 2 million barrels of crude oil a day from northern Africa to the US Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2012. Technically market is under long liquidation as market has witnessed drop in open interest by -3.24% to settled at 39240 while prices down -113 rupee, now Crudeoil is getting support at 6651 and below same could see a test of 6594 level, And resistance is now likely to be seen at 6800, a move above could see prices testing 6892.