Commodity Trading Tips for Crude Oil by KediaCommodity

Ajay Kumar Kedia 17 July 2014

Crude-Oil Crudeoil settled up 1.52% at 6088 moved up sharply amid expectations of increased demand on the back of some upbeat Chinese GDP data even as the official weekly oil report from the U.S. EIA showed crude stockpiles to have declined more than expected last week. Crude received some support from strong Chinese economic data earlier in the session. China's economy expanded at a 7.5 percent annual pace in the second quarter as a result of government stimulus measures, signaling expectations of increasing demand. Also support seen after, a report from the U.S. EIA showed U.S. crude oil inventories to have surprisingly dropped 7.5mbls in the week ended July 11 against a decline of 2.1mbls. The EIA report showed U.S. crude oil inventories at 375mbls, end last week. Gasoline stocks rose by 0.2mbls last week, while market anticipated a rise of 1.2mbls. Inventories of distillate, including heating fuel, rose 2.5mbls, with market looking for an increase of 2.0mbls. A report from the API late Tuesday showed U.S. crude inventories to have declined by a larger than expected 4.8mbls in the week ended July 11. Meanwhile, reports from the Middle East said Iraqi forces have retreated from central Tikrit after fierce fighting with suspected ISIS militants that resulted in the death of more than 50 soldiers. Also the U.S. Fed Chair Janet Yellen continuing her testimony before the House Financial Services Committee on Wednesday, rejected a GOP bill that would require the Fed to follow a mathematical rule for when to raise or lower interest rates. Technically market is under short covering and getting support at 6038 and below same could see a test of 5989 level, And resistance is now likely to be seen at 6117, a move above could see prices testing 6147.