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Technically Crude Oil market is under fresh selling as market has witnessed gain in open interest by 19.55% to settled at 11452.
Now MCX Crude Oil is getting support at 4495 and below same could see a test of 4420 levels and resistance is now likely to be seen at 4706, a move above could see prices testing 4842.
Crude Oil on MCX settled down 4.03% at 4570 after data showed U.S. crude stockpiles fell less than expected and U.S.-China trade tensions intensified.
Meanwhile prices of oil were held down by news that China will impose a 25% retaliatory tariff on $16 billion worth of U.S. goods, including crude.
Trade tensions continued this week after the U.S. announced a 25% tariff on $16 billion of Chinese goods to go into effect on Aug. 23. China’s crude oil imports recovered slightly in July after falling for the previous two months, but were still among the lowest this year due to a drop-off in demand from the country’s smaller independent, or “teapot”, refineries.
U.S. crude stocks fell last week, while gasoline and distillate inventories rose, the Energy Information Administration said. Crude inventories fell by 1.4 million barrels in the last week, compared with analysts’ expectations for a decrease of 3.3 million barrels. Crude production declined 100,000 barrels per day to 10.8 million bpd in the week, according to the report.
The drop followed a monthly report from EIA that showed oil production is growing slower than previously expected in 2018. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 590,000 barrels, EIA said.
Refinery crude runs rose by 118,000 barrels per day, EIA data showed. Refinery utilization rates rose by 0.5 percentage point. Distillate stockpiles , which include diesel and heating oil, rose by 1.2 million barrels, versus expectations for a 220,000 barrels increase, the EIA data showed.
Trading Ideas:
–Crude Oil trading range for the day is 4420-4842.
–Crude oil prices dropped after data showed U.S. crude stockpiles fell less than expected and U.S.-China trade tensions intensified.
–Crude inventories fell by 1.4 million barrels in the last week, compared with expectations for a decrease of 3.3 million barrels.
–China’s July crude oil imports recovered slightly in July after falling for the previous two months.
Courtesy: Kedia Commodities
Source: Commodityonline.com
