BSH: CRUDEOIL Outlook: Libya continues to add markets fears of additional supply in an already equilibrium market whereas we are not seeing any losses in output out of Iraq. As of early morning trade, oil prices in Asia are modestly higher following the improving Chinese economic data whereas early morning numbers from API too supported modest optimism. China Q2 GDP exceeded estimates, rising by 7.5% as government spending increased along with lending. Positive numbers were also reported on the industrial production side and are supporting marginal gains in oil as China is the world’s second largest consumer of oil. Looking at other US related cues, API reported crude stocks fell by 4.8 million barrels last week, news reports showed. Today evening, the DoE is expected to continue show fall in crude stocks though product inventories are expected to rise and weigh on overall outlook for the commodity. Bloomberg survey shows, gasoline stockpiles increased by 950,000 barrels whereas distillate stocks rose by 2 million barrels. Looking at the above aspects cumulatively and appending with the fact that oil trades modestly oversold, we recommend buying the commodity for small targets though would maintain selling from higher levels in intraday from those levels. Technical: After continous fall in last couple of weeks in crude now it seems holding the level 98 where as inventory ahead we expected a volatile session which will be in a rage of 99.50-101.50 where one can trade in between these levels with buy on dips or sell on rise strategy for the day...Thanks and Happy trading
Posted on: Wed, 16 Jul 2014 08:27:41 +0000
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