Commodity Trading Tips for Crudeoil by Kedia Commodity

Ajay Kumar Kedia 25 July 2013

Crudeoil yesterday settled down -1.97% at 6267 as weak China data renewed concerns over demand growth from the world's second-biggest oil consumer, although falls in U. S. refined product and crude stocks helped stem losses. But oil gained some support from a U. S. industry report showing drops in crude and product inventories, particularly gasoline. Oil briefly recovered some losses immediately after inventory figures from the U. S. Department of Energy's Energy Information Administration (EIA), which showed crude oil stocks falling slightly faster than forecast. The U. S. Energy Information Administration said in its weekly report that U. S. crude oil inventories fell by 2.8 million barrels in the week ending July 19, exceeding expectations for a decline of 2.4 million barrels. Total U. S. crude oil inventories stood at 364.2 million barrels as of last week. Traders were also cautious after the preliminary reading of China's HSBC manufacturing PMI fell to an 11-month low of 47.7 in July, from a final reading of 48.2 last month. Analysts had expected the index to rise to 48.6. Oil prices also continue to be supported by conflict and tension in the Middle East, with a bomb killing one and wounding 17 in Cairo. Gasoline stockpiles fell by 1.4 million barrels, compared to expectations of an increase of 900,000 barrels. Distillate stocks, which includes diesel and heating oil, fell by 1.2 million barrels. Analysts had expected an increase of 1.6 million barrels. Technically market is under long liquidation as market has witnessed drop in open interest by -13.67% to settled at 49362 while prices down -126 rupee, now Crudeoil is getting support at 6206 and below same could see a test of 6144 level, And resistance is now likely to be seen at 6364, a move above could see prices testing 6460.