Commodity Trading Tips for Crude palm oil by KediaCommodity

Ajay Kumar Kedia 20 February 2014

Crude Oil Crudeoil settled up 0.95% at 6406 but overall traded in the range as the markets weighed weather concerns in the U. S. along with heating oil inventories. Support is seen after the strong winter storms that swept over the northeastern U. S. on Tuesday and brought strong winds and fresh snowfall likely hiked demand for heating oil, investors were betting. Chilly forecasts sent oil prices climbing, as did unrest in crude-rich Venezuela and Libya. Government data to be released later in the day could show another drawdown in crude stockpiles at WTI crude's delivery point in Cushing, Oklahoma, as a new pipeline diverts supply to the gulf coast. Distillates inventories are also expected to fall on robust heating demand this winter. Also investors will also be looking out for the preliminary China PMI from HSBC/Markit for February. More evidence of slower growth in the world's No. 2 economy may pressure commodities. Also U. S. crude stocks fell last week as imports dropped, while gasoline inventories increased and distillate stocks fell, data from industry group the API showed. Crude inventories fell by 473kbls in the week to Feb. 14 to 362.5 million, compared with market expectations for an increase of 2mbls. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.8mbls, API said. Six world powers and Iran appeared to make some progress at a second day of talks in Vienna on Wednesday to hammer out an agenda for reaching an ambitious final settlement to the decade-old standoff over Tehran's nuclear program. Technically market is under fresh buying and getting support at 6371 and below same could see a test of 6336 level, And resistance is now likely to be seen at 6434, a move above could see prices testing 6462.