Commodity Trading Tips for Crude Oil by KediaCommodity

Ajay Kumar Kedia 12 May 2014

Crude-Oil Crudeoil settled down -0.25% at 5993 tracking weakness from Nymex Crude oil which is traded near to $100 a barrel recovered from the day's low as supported by worries about escalating tensions in Ukraine and after prices snapped a fortnight of falls with a small rise last week. Pro-Russian separatists in eastern Ukraine appeared to be on track to declare victory in a referendum Sunday that Kiev and the West say is illegal and riddled with irregularities. The vote ratchets up tensions between the Kremlin, which may recognize the vote, and the nascent government in Kiev, which is struggling to regain control of the two provinces that it says Moscow is destabilizing through support of rebels. Last week, crude oil futures briefly rose to a two-week high before turning lower as a broadly stronger U.S. dollar prompted investors to lock in recent gains. The U.S. dollar rallied to a one-month peak against the euro on Friday, extending steep gains from the previous session after the ECB indicated that it could ease monetary policy as soon as next month. Futures were higher earlier in the day amid easing concerns over a slowdown in demand from China. Data released Friday showed that consumer price inflation in China rose 1.8% in April from a year earlier, less than market expectations for a 2.0% gain. On Thursday, official trade data showed that China’s surplus widened to $18.45 billion in April from a surplus of $7.7 billion in March, compared to estimates for a surplus of $13.9 billion. Technically market is under long liquidation and getting support at 5965 and below same could see a test of 5936 level, And resistance is now likely to be seen at 6046, a move above could see prices testing 6098.