Commodity Trading Tips for Crude Oil by KediaCommodity

Ajay Kumar Kedia 16 July 2014

Crude-Oil Crudeoil settled down -0.83% at 5997 in the line of expectation tracking the losses on NYMEX where prices dropped sharply to end at a two-month low below the $100-level for the first time since May, as market players assessed demand prospects from the U.S. and the supply outlook in the Middle East. on Tuesday, ahead of the official U.S. crude stockpile data, on sustained selling pressure amid expectations of a global supply glut even as supply disruption from Iraq eased. Reports of escalating violence in key oil producing regions of the Middle East failed to give prices much support. Fighting between rival militias over Tripoli International Airport could spiral into larger problems for Libya's fragile government just as crude shipments were set to resume from some major ports. Also US Fed Chairman Janet Yellen told the Senate Committee on Banking, Housing, and Urban Affairs that the central bank may raise interest rates sooner than earlier forecast if improvements in the U.S. labor market are sustained. Data from industry group the API showed on Tuesday that U.S. crude inventories fell by 4.8mbls in the week to July 11 to 375.3 million, compared with expectations for a decrease of 2.1mbls. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 944kbls. While recovery seen in the late session after the reports of escalating violence in key oil producing regions of the Middle East that give prices much support. Fighting between rival militias over Tripoli International Airport could spiral into larger problems for Libya's fragile government just as crude shipments were set to resume from some major ports. Technically market is under fresh selling and getting support at 5948 and below same could see a test of 5898 level, And resistance is now likely to be seen at 6068, a move above could see prices testing 6138.