Crudeoil settled down -1.98% at 6131 to test a three-week low, amid concerns over record-high U.S. crude supply levels. While Nymex Crude prices still holding $100 mark as support seen amid of tensions rose in Ukraine and the US and Europe prepared new sanctions against Russia.
Crude oil prices could get support today ahead of a shortened week through much of the region with Japan due to observe a holiday on Tuesday while most other parts of Asia will be closed on Thursday for Labour Day.
The U.S. EIA said last week that crude oil inventories rose by 3.52 million barrels last week to hit at an all-time high of 397.7 million. U.S. crude supplies have risen in 13 of the last 14 weeks, underlining concerns over a slowdown in demand from the world’s largest oil consumer.
Meanwhile, market players continued to monitor U.S. data for further indications on the strength of the economy and the future course of monetary policy.
Data on Friday showed that consumer confidence rose to a nine-month high in April, adding to signs that the economy is improving. The University of Michigan reported that its consumer sentiment index came in at 84.1 this month, up from 80 in March and the preliminary reading of 82.6. In the week ahead, investors will be looking ahead to Wed’s monetary policy announcement by the Fed amid speculation the central bank is likely to continue to scale back its stimulus program.
The U.S. will also release the monthly non-farm payrolls report for April later in the week as well as a preliminary estimate on first quarter economic growth.
Technically market is under long liquidation and getting support at 6082 and below same could see a test of 6033 level, and resistance is now likely to be seen at 6223, a move above could see prices testing 6315.
Trading Ideas:
--Crudeoil trading range for the day is 6033-6315.
--Crude oil prices dropped as pressure seen after report showing the amount of crude oil that producers can quickly bring on line had risen.
--However downside was limited as escalating tensions over Ukraine between major oil producer Russia and the West heightened fears of supply disruption.
--A report by EIA showed, however, that the global surplus of oil production capacity had risen 200,000 barrels per day over the last two months.
www.punjiniveshonline.com
www.punjiniveshonline.com
Crude oil prices could get support today ahead of a shortened week through much of the region with Japan due to observe a holiday on Tuesday while most other parts of Asia will be closed on Thursday for Labour Day.
The U.S. EIA said last week that crude oil inventories rose by 3.52 million barrels last week to hit at an all-time high of 397.7 million. U.S. crude supplies have risen in 13 of the last 14 weeks, underlining concerns over a slowdown in demand from the world’s largest oil consumer.
Meanwhile, market players continued to monitor U.S. data for further indications on the strength of the economy and the future course of monetary policy.
Data on Friday showed that consumer confidence rose to a nine-month high in April, adding to signs that the economy is improving. The University of Michigan reported that its consumer sentiment index came in at 84.1 this month, up from 80 in March and the preliminary reading of 82.6. In the week ahead, investors will be looking ahead to Wed’s monetary policy announcement by the Fed amid speculation the central bank is likely to continue to scale back its stimulus program.
The U.S. will also release the monthly non-farm payrolls report for April later in the week as well as a preliminary estimate on first quarter economic growth.
Technically market is under long liquidation and getting support at 6082 and below same could see a test of 6033 level, and resistance is now likely to be seen at 6223, a move above could see prices testing 6315.
Trading Ideas:
--Crudeoil trading range for the day is 6033-6315.
--Crude oil prices dropped as pressure seen after report showing the amount of crude oil that producers can quickly bring on line had risen.
--However downside was limited as escalating tensions over Ukraine between major oil producer Russia and the West heightened fears of supply disruption.
--A report by EIA showed, however, that the global surplus of oil production capacity had risen 200,000 barrels per day over the last two months.
www.punjiniveshonline.com
www.punjiniveshonline.com
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