Commodity Trading Tips for Crude Oil by KediaCommodity

Ajay Kumar Kedia 23 July 2014

Crude-Oil Crudeoil settled down -0.15% at 6181 slipped to end lower on Tuesday, ahead of the official U.S. crude stockpile data from the EIA. Investors also continued to keenly monitor the supply disruption scenario amid the ongoing conflicts in Ukraine and the Middle East. Crude prices were also negatively impacted on news that Libya's Brega oil port is set to reopen following an agreement with striking guards. Meanwhile, news reports emerged that European Union foreign ministers have agreed to impose tighter sanctions against Russia, following the downing of a Malaysia Airlines plane. API data released on Tuesday showed that U.S. crude inventories fell just 555,000 barrels last week to 374.7 million, as crude stocks at the Cushing, Oklahoma, hub fell by 1.4 million barrels. The data was released ahead of the weekly inventory report from the U.S. Department of Energy's EIA due on Wednesday. Domestic crude stocks fell by 7.5 million barrels the previous week, the biggest draw since January, caused by a sharp increase in refinery activity. In Libya, a spokesman for the National Oil Corporation said oil output had fallen to 450,000 barrels per day, a drop of almost 20 percent since last week, as escalating violence has curbed some operations. Oil traders will turn their focus later to weekly U.S. commercial crude oil inventories, which are expected to have fallen by 2.8 million barrels in the week to July 18. Technically market is under fresh selling as market has witnessed gain in open interest by 27.42% to settled at 7366 while prices down -9 rupee, now Crudeoil is getting support at 6152 and below same could see a test of 6124 level, And resistance is now likely to be seen at 6231, a move above could see prices testing 6282.