Commodity Trading Tips for Crude Oil by KediaCommodity

Ajay Kumar Kedia 19 June 2014

Crude-Oil Crudeoil settled down -0.56% at 6378 ended lower tracking weakness from Nymex Crude while settled below $106 level after a weekly report from the U.S. EIA showed crude oil stockpiles in the U.S. to have declined less than expected. Nonetheless, the drop was limited on reports of continued fighting in Iraq with jihadists attacking the country's largest oil refinery. A report from the U.S. EIA showed U.S. crude oil inventories to have declined 0.58mbls in the week ended June 13, with market anticipating a drop of 1.0mbls. The EIA report showed U.S. crude oil inventories at 386.3mbls, end last week. The situation in Iraq continues to be of concern with Islamic militants advancing towards Iraq's capital, having attacked the country's biggest oil refinery with machine gun fire and mortars, according to news reports. Refinery sources said a spare-parts warehouse at the periphery of the complex caught fire in the overnight attack. Also since Tuesday, crude oil futures getting presure as some disappointing economic data from the U.S. including a more than expected drop in housing starts contributing to oil's weakness. However, worries about possible supply disruptions from Russia and Iraq limited oil's losses. In economic news from the U.S., the FOMC reduced the pace of monthly asset purchases by $10 billion to $35 billion, as expected. Additional tapering is likely if the labor market continues to show improvement and inflation picks up, the Fed said in a statement accompanying its decision. Technically market is under long liquidation and getting support at 6342 and below same could see a test of 6305 level, And resistance is now likely to be seen at 6444, a move above could see prices testing 6509.