Commodity Trading Tips for Crude Oil by KediaCommodity

Ajay Kumar Kedia 9 July 2014

Crude-Oil Crudeoil settled down -0.42% at 6189 as Libyan oil exports looked likely to rise and fears eased of supply disruption in Iraq. Libya's 340,000 barrel per day (bpd) El Sharara oilfield has resumed operations after a four-month strike, a spokesman for state-run National Oil Corp (NOC) said. This may free more oil for export after last week's port deal with rebels. In Libya, preparations were under way to reopen two major oil ports in the east. Shut by protests almost a year ago, the Ras Lanuf and Es Sider ports make up more than a third of the OPEC producer's export capacity. A NOC spokesman said Libya's oil output was at 326,000 barrels per day, well below its post-civil war high near 1.4 million bpd. Libya's oil sector took another big step back to normality with the restarting of an oilfield that could double its current meagre crude output, a week after blockades ended at major ports. U.S. crude inventories fell by 1.7 million barrels in the week to July 4, compared with expectations for a decrease of 2.2 million barrels, data from industry group the American Petroleum Institute showed on Tuesday. Ongoing indications that Iraqi oil exports from the southern part of the country remained insulated from the sectarian violence that has swept the north in recent weeks also weighed. Market players awaited key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer. Technically market is under long liquidation as market has witnessed drop in open interest by -6.7% to settled at 9930, now Crudeoil is getting support at 6169 and below same could see a test of 6148 level, And resistance is now likely to be seen at 6224, a move above could see prices testing 6258.