Commodity Trading Tips for Crude palm oil by KediaCommodity

Ajay Kumar Kedia 2 January 2014

Crude oil settled up 0.21% at 6135 nudged higher recovering some losses from earlier in the week after a higher-than-expected drop in U. S. crude inventories despite signs the Chinese economy lost some steam late last year. Futures climbed as much as 0.4 percent after capping a 7.2 percent annual gain in 2013. The API reported U. S. oil supplies slid 5.67mbls last week. Expectations for Libyan oil exports to resume to near normal levels sent prices falling Tuesday due to the added supply they'd bring to the global market. Libyan oil operations faced glitches recently due to protesters disrupting production at various oilfields. Expectations for increased exports from South Sudan also nudged prices lower. Crude oil traders now looked ahead to key U. S. supply data, which may show a fifth consecutive weekly drop in crude stockpiles. Meanwhile solid consumer confidence data did little to boost the commodity, which was still on track to finish 2013 up around 6%. The Conference Board reported earlier that its index of U. S. consumer confidence improved to 78.1 in December from 72.0 in November, beating consensus forecasts for a 76.0 reading. Also Tuesday, the S&P's/Case-Shiller 20-city home price index rose at an annualized rate of 13.6% in October from a year earlier, the strongest pace since February of 2006 and above forecasts for an increase of 13.0%. Separately, industry data revealed that the Chicago PMI fell to a seasonally adjusted 59.1 this month from 63.0 in November. The more closely-watched numbers from the U. S. EIA have been delayed until Friday due to the New Year's holiday. Technically market is under short covering as market has witnessed drop in open interest by -2.51% to settled at 9209 while prices up 13 rupee, now Crude oil is getting support at 6116 and below same could see a test of 6096 level, And resistance is now likely to be seen at 6163, a move above could see prices testing 6190.