Commodity Trading Tips for Crude Oil by KediaCommodity

Ajay Kumar Kedia 7 January 2014

Crude-Oil Crudeoil settled down -0.86% at 5846 carried Friday's losses into Monday due to ongoing expectations that Libyan output is expected to rise, while soft U.S. service-sector data pushed prices down as well. Ongoing expectations for Libyan oil exports to resume to near normal levels sent prices falling due to the added supply they'd bring to the global market. Libyan oil operations faced glitches in the recent past due to protesters disrupting production at various oilfields, and expectations for the country to possibly double its output to around 600,000 barrels per day soon pressured prices lower on Monday. Expectations for increased exports from South Sudan also nudged prices lower. Prices also slumped after the Institute of Supply Management said its non-manufacturing purchasing managers' index fell to 53.0 in December from 53.9 in November. While US commercial crude oil inventories likely rose 2.2 million barrels in the week ended Jan. 3 after near-record five-week declines. Also OPEC's oil output averaged 29.53 million barrels per day in December, falling to the lowest since May 2011, a Reuters survey found, due to strikes and protests in Libya, stagnation in Iraqi exports and a further reduction in Saudi Arabian supply. Also severe cold weather sweeping across the central United States is threatening to curtail some oil production, but may also curb demand for gasoline. Technically market is under fresh selling as market has witnessed gain in open interest by 0.74% to settled at 13266 while prices down -51 rupee, now Crudeoil is getting support at 5818 and below same could see a test of 5791 level, And resistance is now likely to be seen at 5895, a move above could see prices testing 5945.