Commodity Trading Tips for Crude oil by KediaCommodity

Ajay Kumar Kedia 9 January 2014

Crudeoil settled down -1.18% at 5787 after official data revealed the country's gasoline and distillates stockpiles rose more than expected last week, while falling crude inventories cushioned losses somewhat. The U. S. Energy Information Administration said in its weekly report that U. S. crude oil inventories fell by 2.68 million barrels in the week ended Jan. 3, beating expectations for a decline of 849,000 barrels. Total U. S. crude oil inventories stood at 357.9 million barrels as of last week. The report also showed that total motor gasoline inventories increased by 6.24 million barrels, significantly higher than expectations for a gain of 2.28 million barrels. Meanwhile inventories of distillates, which include diesel fuel and heating oil, rose by 5.83 million barrels compared to market calls for a gain of 1.90 million. The hikes in refined oil products sent prices falling, though the decline in crude stockpiles gave the commodity some support as did Libyan supply concerns. Oil prices have fallen in recent sessions on expectations for Libyan production to approach normal levels and add to global supply. Libyan oil operations faced glitches in the recent past due to protesters disrupting production at various oilfields, and expectations for the country to possibly double its output to around 600,000 barrels per day soon pressured prices lower in recent sessions. On Tuesday, however, reports that the Libyan Navy warned it would destroy ships attempting to load oil a seized terminals bolstered prices. Technically market is under fresh selling as market has witnessed gain in open interest by 12.25% to settled at 14331 while prices down -69 rupee, now Crudeoil is getting support at 5752 and below same could see a test of 5717 level, And resistance is now likely to be seen at 5848, a move above could see prices testing 5909.