Oil Inches Up Ahead Of Fed; Jobs

Oil.......

Crude oil futures inched up on value buying in the Asia electronic session today after the commodity tumbled to the lowest level in more than three weeks yesterday as traders awaited a reading on U.S. economic growth and an update on the Federal Reserve's stimulus measures.

Light, sweet crude futures for delivery in September are trading up 22 cents at $ 103.30 per barrel on the New York Mercantile Exchange. Light, sweet crude for September delivery settled $1.47, or 1.4%, lower at $103.08 a barrel its lowest finish since July 3.

In the economic front today, Japan's manufacturing grew at a slower pace this month, though still registered expansion, according to the Markit/JMMA Japan manufacturing Purchasing Managers' Index, released Wednesday. The headline index fell to 50.7 from June's 52.3, but remained above the 50 level -- the dividing line between growth and contraction -- for the fifth straight month.

Chinese stocks rose Wednesday after state media said the Communist Party's politburo vowed to keep economic growth steady in the second half of the year despite what it said were "extremely complicated domestic and international conditions." The Xinhua news report Tuesday carrying the statement didn't specify a growth level that it would defend. China's gross domestic product rose 7.7% in the first quarter and 7.5% in the second quarter.

The American Petroleum Institute reported a decline in U.S. inventories in its separate survey released late Tuesday. The industry group said crude stockpiles last week declined 740,000 barrels.

Investors are likely to remain cautious ahead of the second-quarter gross domestic product data and Fed statement Wednesday. The weekly crude stockpiles data is also due Wednesday. On Friday, traders will shift their focus to the Labor Department's closely watched nonfarm payrolls for the month of July. The release will offer clues on the health of the U.S. jobs market.

MCX August crude oil futures may open today’s session near Rs 6280 levels with resistance near Rs 6315-30 levels.

Source by Commodity Insights

Technical Comment For Day: Crude Oil

Oil........

Crude Oil settled at Rs 6251 per barrel, up 0.84%. The prices are shaping on the lower side similar to the open interest that is dipping with every passing session. The decline in open interest is an indicator that the path of Crude will become more skewed between upside and downside. The support for Crude is at Rs 6150, which is also its trend line support, intact from 9 July 2013.

Source by Commodity Insights

Oil Extends Losses In Asia

Oil.......

Crude oil futures slipped below $105 a barrel in the Asia electronic session today pressured by strength in the US dollar. The energy commodity is also undermined by growing concerns over the outlook for energy demand in China, ahead of manufacturing data from China and a statement on monetary policy from the U.S. Federal Reserve due this week.

Crude oil for September delivery is trading down 24 cents at $104.31 per barrel on the New York Mercantile Exchange. Yesterday, it fell 15 cents, or 0.1%, to settle at $104.55 a barrel. On Friday, the contract fell 79 cents to $104.70 a barrel.

The ICE dollar index, a gauge of the greenback’s movement against six other major currencies, rose to 81.711, up from 81.663 late Monday in North America. The euro bought $1.3260, little changed from $1.3263, while the British pound fell to $1.5339 from $1.5349.

On the data front today, Japan's industrial production took an unexpectedly sharp drop in June, falling a seasonally adjusted 3.3% from May, though manufacturers offered an upbeat outlook for the current month, the Ministry of Economy, Trade and Industry reported Tuesday.

Meanwhile, Japanese consumer spending made a surprise downturn in June, though the unemployment rate eased in the same month, the Finance Ministry reported Tuesday. Spending by households of two or more people fell 0.4% on a price-adjusted basis compared to a year earlier. On a brighter note, the unemployment rate eased to 3.9% in June -- an almost five-year low.

MCX August crude oil futures may open today’s session near Rs 6240 per barrel with support around Rs 6190 levels.

Energy investors have a busy week of economic updates to consider, including the first look at second-quarter growth in the U.S. and more manufacturing data from China for July. Last week, oil prices suffered their first weekly loss in five weeks after HSBC data showed manufacturing activity in China fell to an 11-month low in July.

A statement on monetary policy is due from the Fed on Wednesday, followed by statements Thursday from the European Central Bank and the Bank of England. The markets will watch for any language from the Fed that hints at the timing of when it will start tapering monetary stimulus. The central bank’s bond-buying program, part of a strategy to encourage economic growth, currently runs at $85 billion a month.

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Hot Commodities: Natural Gas Tumbles Near Six Month Lows

The US Natural Gas futures tumbled to near their six-month lows today as traders continued to sell the commodity amid a weak global economic backdrop. Prices have also been hit in the last few days on ideas that after predictions that most of the eastern U.S. will see seasonal temperatures, with lower readings in the Midwest. Today, the benchmark US contract slipped nearly 2% to quote at $3.497 per mmbtu as Asian stocks were pushed lower.

Natural Gas stockpiles rose by 41 billion cubic feet last week to 2.786 trillion, below the five-year average gain of 53 billion for the period, an EIA report yesterday showed. A deficit to the historic average widened to 1.6 percent from 1.2 percent the previous week. Inventories were 12.5 percent below year-earlier levels, compared with 13.1 percent in last week's report.

However, the commodity could turn up on updates regarding Tropical Storm Dorian. The storm is currency on the east of the northern Leeward Islands and is moving west-northwest and may be over the southern Bahamas early July 31. The storm has maximum winds of 50 miles per hour and is expected to weaken a bit in the next day or so, the center said.

For the time being though, bearish moves engulf the commodity quite vehemently. Asian stocks have tumbled heavily, down around 1-2% with Nikkei being slammed by nearly two and half percent. MCX Natural Gas is quoting at Rs 208.70, down 2% with a massive 8.8% increase in open interest.

A deficit to the historic average widened to 1.6 percent from 1.2 percent the previous week. Inventories were 12.5 percent below year-earlier levels, compared with 13.1 percent in last week's report.

Source by Commodity Insights

Oil Holds Gains In Asia

Oil......

Crude oil futures held on to its gains near $ 105 a barrel levels in the Asia electronic trades today buoyed by the positive data from US. Positive economic news tends to boost oil prices since it raises expectations about improvement in energy demand. Data Thursday showed a 4.2% jump in U.S. durable-goods orders for June, the third straight big monthly gain. The first estimate of second-quarter gross domestic product in the U.K. showed 0.6% quarterly growth, in line with expectations. Crude oil for September delivery is trading up 6 cents at $ 105.55 per barrel on the New York Mercantile Exchange. Yesterday, it added 10 cents, or 0.1%, to end at $105.49 a barrel after touching a low of $104.08 in electronic trading. Oil prices on Wednesday fell 1.7% after an HSBC report showed preliminary manufacturing activity in China — among the world’s largest oil consumers. Taking a look at the long term, the U.S. Energy Information Administration’s International Energy Outlook report on Thursday released a forecast that world energy consumption will grow by 56% between 2010 and 2040 to 820 quadrillion British thermal units from 524 quadrillion Btus. Most of the growth will come from countries that aren’t part of the Organization for Economic Cooperation and Development. The EIA didn’t release an international energy outlook report in 2012. In 2011, it said it expected world energy consumption to grow by 53% from 2008 to 2035. On the data front today, Japan's consumer prices managed to register mild inflation in June compared with a year earlier, data out Friday from the Finance Ministry showed. The core consumer price index, which excludes volatile fresh-food costs, rose 0.4% from June 2012, though it was unchanged compared to May's levels. MCX August crude oil futures may open today’s session near Rs 6235 levels with support around Rs 6200 and resistance near Rs 6290 levels. Source by Commodity Insights

Technical Comment For The Day: Crude

Crude........

Swings between gains and losses are set to continue in Crude oil. The prices settled at Rs 6393 per barrel on Tuesday. Last session saw Crude oil testing a high of Rs 6407 and a low of Rs 6322 per barrel. The prices are already in an overbought zone and rallies from here will be full of friction. However a safe approach of buying the Crude Oil is on its lows. Ascending triangle pattern is in the making but the confirmation of breach of resistance is yet to be received.

Trading Strategy: SELL MCX Crude AT 6380-90 TARGET 6325 SL 6410

Source by Commodity Insights

Oil Slips On Profit Taking

Oil.......

Crude oil futures slipped in the Asia electronic session trading as investors booked profits after the metal rallied yesterday buoyed by a drop in U.S. supplies that was nearly three times more than expected.
The U.S. Energy Information Administration in its weekly crude oil report said U.S. commercial crude oil inventories dived 6.90 million barrels to 367.00 million barrels last week, but are in the upper half of the average range for this time of year. The week before, crude oil inventories dipped 9.90 million barrels to 373.90 million barrels.
Late Tuesday, data from the API revealed that U.S. crude oil inventories shed 2.60 million barrels
NYMEX light sweet crude oil futures are trading down 26 cents at $ 106.09 per barrel. Yesterday, it added 48 cents, or 0.5%, to settle at $106.48 a barrel on the New York Mercantile Exchange. The contract fell 32 cents on Tuesday.
Meantime, U.S. crude oil imports during the week averaged 7.70 million barrels per day last week, up by 180,000 barrels per day from the previous week, official data revealed. Over the last four weeks, imports have averaged 7.70 million barrels per day, which were 1.10 million barrels per day below the same four-week period last year.
Comments from Federal Reserve Chairman Ben Bernanke during his first day of Congressional testimony contributed to oil’s up and down price movements. The Fed chief was due to speak before the Senate later Thursday.
MCX July crude oil futures may open today’s session near Rs 6291 with support around Rs 6260 levels.
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Oil Slips Below $106 In Mixed Asia

Oil........

Crude oil futures slipped in the mixed Asia trading today with the dollar trading slightly higher ahead of the Bernanke testimony.
In Asia, the Hong Kong stocks rose and Japanese shares fell ahead of Federal Reserve Chairman Ben Bernanke’s congressional testimony later in the day. Hong Kong’s Hang Seng Index climbed 0.6%, Australia’s S&P/ASX 200 added 0.1%, and South Korea’s Kospi gained 0.8%, with all of them reversing early losses.
Japan’s Nikkei Stock Average fell 0.7% in Tokyo afternoon trading after ending at a seven-week high Tuesday, while the Shanghai Composite lost 0.2%, after changing direction a few times.
NYMEX light sweet crude oil is trading down 16 cents at $ 105.85 per barrel extending yesterday’s 32 cent loss during regular New York Mercantile Exchange trading.
Oil gave further ground after the Nymex close as the American Petroleum Institute reported a 2.6-million-barrel drop in U.S. crude inventories for the week ended July 12. A Platts survey of analysts had forecast a decrease of 2.5 million barrels.
Strength in the U.S. dollar also pressurized oil today. The ICE dollar index edged up to 82.658 from late Tuesday’s 82.599 levels. A rising U.S. currency can dampen prices of dollar-denominated oil by making it more expensive in other currencies.
Forex markets are on edge ahead of congressional testimony from Federal Reserve Chairman Ben Bernanke, due later Wednesday and again on Thursday. In comments last week, Bernanke had eased concerns that the Fed would quickly unwind its monetary stimulus, with the remarks weighing on the dollar.
MCX July crude oil futures may open today’s session near Rs 6220 levels with support near Rs 6190 – 70 levels.
Source by Commodity Insights

Oil Slips As China Manufacturing Weakens

Oil........
Crude oil futures slipped below $97 a barrel in the Asia electronic session today as a further slowdown in manufacturing activity in China raised demand concerns from the world's second-largest oil consumer.
Asian markets on Monday began a new quarter on a weak footing as a further slowdown in manufacturing activity in China, South Korea and Taiwan raised concerns about the health of those economies.
Australia's S&P/ASX 200 tumbled 1.6% as the country began a new financial year. Japan's Nikkei Stock Average gave up 0.5%, South Korea's Kospi lost 0.2%, and Taiwan's Taiex shed 0.3%. China's Shanghai Composite dropped 0.4% in choppy trading, resuming its downtrend after snapping a seven-day losing streak on Friday. Hong Kong markets were closed for a holiday.
The day's broad losses came as two separate surveys in China showed a further loss of momentum in factory activity. An officially sponsored reading of the manufacturing Purchasing Managers' Index for June dropped to 50.1 from 50.8 in May. Another survey by HSBC showed the monthly PMI falling to 48.2 in June from 49.2 in May.
Light sweet crude futures for delivery in August are trading down 20 cents at $ 96.36 per barrel on the New York Mercantile Exchange. Oil futures rose 2.65% on the week. For the quarter, however, oil declined nearly 1%, as a combination of concerns over an end to the Fed's assets purchase program and fears over a deepening slowdown in China weighed.
Oil prices hit a session high of $97.82 a barrel on Friday, the strongest level since June 20, as a series of upbeat U.S. data releases during the week boosted optimism over the U.S. economic recovery.
MCX July crude oil futures may open today's session near Rs 5740 levels with support around Rs 5700 levels.
Oil traders now look ahead to this week's highly-anticipated U.S. nonfarm payrolls data for indications of how the recovery in the U.S. labor market is progressing. Any improvement in the U.S. economy was likely to reinforce the view that the Federal Reserve will begin to taper its bond purchase program in the coming months.
Source by Commodity Insights

Crude Oil Manages Steady Gains In Global Markets

Oil.......

MCX Crude oil futures traded sideways as a bounce in Indian Rupee from its all time lows near 61 per US dollar undercut the gains in the overseas prices. Modest gains in Asian and European stocks kept crude supported and the WTI futures managed to hit a high above $96 per barrel. The commodity currently quotes at $95.81, up 31 cents per barrel. Prices topped out at their four-month high last week.

Stocks were supported today around the world. US gross domestic product expanded at a 1.8% annual rate in the first quarter, compared with the previously reported 2.4 percent pace, lending a cautionary note on economic recovery. This data could mean that Fed might not act in a very fleeting manner as regards unwinding of its asset buying. In a keenly awaited move, the US Federal Reserve indicated last week that it would begin to taper its bond-buying program later this year. Ben Bernanke, the Fed chief told a news conference that the Fed expects to 'moderate the monthly pace of purchases later this year'.

Meanwhile, oil remains capped on the upside. Concerns over China's economic outlook are also weighing on oil after data last Thursday showed that manufacturing activity hit a nine-month low in June. China's HSBC preliminary manufacturing purchasing managers' index fell to 48.3 in June from 49.2 in May as new orders declined, indicating that the slowdown in manufacturing is worsening.

The US dollar continued to liner around its three week high against the Euro. It oil might not rise much in evening if the dollar continues to hold on. MCX July crude oil futures are quoting at Rs 5786, down Rs 9 per barrel on the day. Prices had rose to a high of Rs 5835 per barrel earlier as the Rupee crumbled towards 61 per dollar.
Source by Commodity Insights

MCX Crude Futures Cushioned On Rupee's Collapse

Crude..........

MCX Crude oil futures were yet again cushioned from a massive sell off in world oil markets. The WTI crude fell from its four month high yesterday on worries about dreaded asset purchase tapering from the US Fed. Weak economic numbers from China and a rise in US crude oil inventories also aided to the downbeat sentiments. Oil dropped towards $96 per barrel in Asia, its one week low and currently trades at $96.98, down $1.48 per ounce on the day.

Global stocks collapsed today. In a keenly awaited event yesterday, the US Federal Reserve Chairman Ben Bernanke stated that the central bank might start to scale back its asset purchases later this year if the economy continues to strengthen, as the central bank expects. The Fed, which kept monetary policy on hold after a two-day meeting, signaled further optimism about the economy, forecasting that the unemployment rate could fall to 6.5% by 2014, one year sooner than the central bank had previously estimated.

This took a heavy toll on the stock markets around the world. DOW fell by 200 points and equities in Asia are down by around 2-3%. The US dollar is rallying, paring some of its latest losses and testing its two-week high around 1.3200 against the Euro today. Commodities fell in general with crude oil and copper taking a heavy drubbing in particular.

Further adding to the gloom in oil, China's manufacturing PMI (purchasing managers' index) dropped to a nine-month low in June as output and new orders both fell. Flash China Manufacturing PMI at 48.3 (49.2 in May) was at a nine-month low; the flash China Manufacturing Output Index at 48.8 (50.7 in May) was at an eight-month low.

Oil futures were also pressured by data from the US Energy Information Administration, which said crude oil inventories in the U.S. rose 300,000 barrels to 394.1 million barrels. US crude-oil stockpiles are lingering near record levels for much of this year, due to surging domestic production and weak demand. The current level is the highest for this week of the year since the EIA began tracking weekly stockpiles in August 1982.

However, the local crude oil futures did not fall as much to the extremely weak undertone in Indian Rupee. The local currency fell towards 60 per US dollar mark- dropping nearly 1.5% on the day as a reaction to the US Fed statement. A hectic activity in local bond markets, which continued to see heavy outflow from overseas investors also spoiled sentiments for the Rupee. MCX crude slipped initially due to the global sell off but recovered from a low of Rs 5764 per barrel. The counter quotes at Rs 5807 - unchanged on the day with a massive 18% increase in the open interest.
Source by Commodity Insights

OIl Inches Up Ahead Of Supply Data

Oil........

Crude oil futures inched up above $ 97 a barrel ahead of the weekly US inventory data from API today which are expected to show a decline. Light sweet crude oil futures for July delivery added 6 cents to $97.82 a barrel on the New York Mercantile Exchange. Oil prices on Monday reversed course and fell 8 cents. Most Asian markets retreated Tuesday in choppy trade as investors pondered whether the U.S. Federal Reserve will maintain its monthly bond purchases, with Hong Kong stocks dragged lower by a drop in mainland Chinese property and banking shares. Australia’s S&P/ASX 200 fell 0.9%, the Shanghai Composite dropped 0.3%, Hong Kong’s Hang Seng Index shed 0.7%, and Taiwan’s Taiex slipped 0.1%. Bernanke is scheduled to hold a press conference Wednesday after the conclusion of the Fed’s two-day policy meeting, which will start later Tuesday. Also, data due out later Tuesday are projected to show U.S. commercial crude-oil stocks declined 1 million barrels for the week ended June 14, according to a Platts survey of analysts. The decline is expected to stem from a reduction in crude-oil imports, which have been volatile recently. The American Petroleum Institute is slated to issue its weekly report at 4:30 p.m. Eastern time. More closely watched figures from the U.S. Energy Information Administration (EIA) are due Wednesday at 10:30 a.m. Eastern. A drawdown of 1 million barrels would be “more than double seasonal norms,” with the EIA’s five-year average showing oil stocks typically fall by about 400,000 barrels during this reporting period, according to Platts. Reports on crude-oil inventory released last week were bearish, with both the API and EIA reporting supply increases, even as analysts had expected no change in inventory levels. MCX August crude oil futures may open today’s session near Rs 5680 levels with resistance near Rs 5720 levels. Source by Commodity Insights

Oil Also Tumbles Post World Bank Forecast

Oil.......
Crude oil futures also tumbled along with other commodities and slump in the Asia, US and European equities after the World Bank cut its 2013 global growth estimate.
The World Bank cut its 2013 global growth forecast to 2.2% expansion in 2013, down from a 2.4% projection issued in January and below last year's estimated 2.3% growth. In its semiannual Glob

al Economic Prospects report the World Bank revised lower its expectations for growth in China, Brazil and India, while upping estimates for Japan and the U.S. For 2014, the World Bank sees global growth at 3%.
Crude oil for July delivery fell 62 cents to $95.24 a barrel in electronic trade, wiping out Wednesday’s advance that came despite downbeat oil-market data. U.S. crude-oil futures were also affected as traders await the reports about consumer and labor-market activity in the U.S., with implications for energy demand.
Oil on Thursday was under pressure although the U.S. dollar declined against major rivals. A decline in the dollar tends to help dollar-denominated oil and other commodities, as it makes them less expensive to holders of other currencies.
With high levels of U.S. oil inventory and weak energy demand in focus, investors will assess U.S. retail sales data for May, as well as weekly jobless claims. Signs of improvement in the economy could be supportive for crude prices.
The government reports are due at 8:30 a.m. U.S. Eastern time. The oil market has received bearish updates this week, with the U.S. Energy Information Administration saying Wednesday that crude-oil supplies rose by 2.5 million barrels for the week ended June 7, to 393.8 million barrels.
The International Energy Agency said China, the world’s second-largest oil consumer, will use less oil this year than previously expected, although its total oil demand will grow by 3.8%.
MCX June crude futures are trading up Rs 3 at Rs 5563 per barrel. It may face a resistance near Rs 5590 levels with support around Rs 5510 levels.
Source by Commodity Insights

Oil Slips Nearly $1 On High Inventory

Crude oil futures slipped nearly a dollar in the mid Asia session today pressured by the slightly high dollar, high inventories and bearish equities.
Asia markets traded lower Wednesday, with investors slapping down Japanese stocks after the yen spiked overnight. Japan’s Nikkei Stock Average had thudded 1.8% lower by the end of the morning session, but it held on to the 13,000 level, trading at 13,072.61. Markets in China — including those in Hong Kong and Shanghai — were closed for the Dragon Boat Festival.
Crude oil for July delivery fell 90 cents, or 0.94%, to $94.49 a barrel, weighed by a report from the American Petroleum Institute that U.S. crude-oil stocks rose by nearly 9 million barrels for the week ending June 7. Analysts polled by Platts had expected no change.
The more closely watched supply data from the U.S. Energy Information Administration were due out later Wednesday at 10:30 a.m. U.S. Eastern time.
Investors this year have grappled with the issue of lofty oil supplies. Last week’s EIA report showed total U.S. crude supplies at 397.6 million barrels, the highest level since at least 1978, when the agency began collecting the data.
U.S. crude-oil futures and Brent crude prices fell on Tuesday fell as the Organization of the Petroleum Exporting Countries trimmed its oil-demand growth guidance for the year by 10,000 barrels per day from the prior month’s report. But OPEC said demand should increase by about 780,000 bpd in 2013.
MCX June crude futures are trading up Rs 2 at Rs 5519 per barrel. The traders may sell it around Rs 5525-30 levels with target of Rs 5490 and Rs 5470 levels with stop loss of Rs 5555 levels.
Source by Commodity Insights

Oil Extends Decline Ahead Of API

Oil.......

Crude oil futures extended decline ahead of the U.S. supply data from the American Petroleum Institute. The losses were exacerbated also due to the strength in the Japanese Yen which triggered sell off in the equities and commodities today.
U.S. benchmark crude’s July contract lost 40 cents, or 0.1%, to $95.37 a barrel, extending a 0.3% loss during Monday’s New York Mercantile Exchange trade which sent the futures below the $96 mark. Oil futures tick lower ahead of key energy reports due later in the day.
The losses preceded the release of month forecasts from the Organization of the Petroleum Exporting Countries (OPEC) and the U.S. Department of Energy.
The markets were also waiting on weekly U.S. supply data from the American Petroleum Institute, which was due out at 4:30 p.m. U.S. Eastern time.
In currencies, the dollar edged lower in early Tuesday trading, with the yen higher after Japan’s central bank offered no new easing moves in its latest policy decision. The Japanese yen gained ground after the Bank of Japan disappointed some market participants who had wanted it to extend the duration on its ultra-low-interest loans to banks.
The dollar slumped following the decision, quickly dropping to ¥97.94 from ¥98.69 moments ahead of the decision. However, the greenback later pared its losses, rising back to ¥98.30, though still below its ¥98.64 level late Monday in North America.
MCX June crude oil futures are trading at Rs 5608 up more than Rs 30 per barrel. The counter may find support near Rs 5570 levels with resistance near Rs 5650 levels.
Source by Commodity Insights

MCX Crude Witnesses Further Fresh Buying

Crude...........

MCX Crude oil futures continued to rise, adding to its recent string of gains though the global prices are showing signs of fizzling out from their two-week highs. The Indian Rupee plummeted to a fresh all time low today and pushed the locally traded MCX Crude futures to a high near Rs 5570 per barrel. The contract witnessed handsome gains last week on fresh buying and the momentum remained the same today even as global prices came to a stall. The WTI Crude oil futures came off highs above $96 per barrel, extending a pattern seen in last session. The contract quotes at $95.45, down 58 cents per barrel on the day.

The global stocks were stirred today after meek economic data from China over the weekend. The Chinese exports edged up by just 1% in May from a year earlier, after rising at 14.7% in April. The imports slipped by 0.3% from a year earlier, compared with a 16.8% rise in April. The industrial production also slowed slightly in May with a 9.2% increase for the year, compared with a 9.3% gain in April.

Meanwhile, economic growth is showing signs of edging up in most big economies, but appears to be firming markedly only in the United States and Japan, the Organisation for Economic Cooperation and Development (OECD) said today. Among the major emerging nations China and Brazil are ticking along at trend rates, while growth in Russia is losing momentum and in India it remains below par, notes the OECD.

The Chinese stocks led a mostly lackluster session for Asian equities while European markets are trading mixed. Crude could correct further in evening trades if the recent break sustains. MCX Crude oil futures added further to their longs, which has been a persistent feature of the trade over last one week or so. The counter quotes at Rs 5548, up Rs 35 per barrel or 0.63% on the day with 8% increase in open interest.
Source by Commodity Insights

MCX Crude Gains Yet Again On Fresh Buying

Oil.......

MCX Crude oil futures managed to hold ground today as global prices lingered above $94 per barrel for WTI futures though some exhaustion seemed to be entering into the commodity. WTI futures are up from a one-month low and demand worries continue to keep sentiments haunted on the broader scale. The global equities were mixed today with losses for stocks in Asia and modest gains for stocks in Europe as the central banking decisions from ECB and BOE dominated much of the proceedings. The WTI Crude oil futures are quoting at $94.31, up 57 cents per barrel right now.

Stocks gained in Europe as the European Central Bank (ECB) kept its main lending rate at a record low 0.5%- a much-anticipated move. The ECB left its deposit rate, which it pays, banks on reserves held at the central bank, at zero. Markets are eying some dovish comments from Mario Draghi in the post meeting conference. Earlier in the day, the Bank of England (BOE) left the size of its bond-buying program unchanged at 375 billion pounds and kept its key-lending rate at a record low 0.5%.

The Euro held onto its gains after the ECB decision, striking a fresh one month high of 1.3131 against the US dollar. The currency has been rallying this week after the downturn in the euro zone economy eased for the second month running in May. At 47.7, the final Markit Eurozone PMI Composite Output Index was in line with its earlier flash estimate and above April's 46.9. Germany edged out of contraction territory in May, as an improvement in its manufacturing sector offset a slight decrease in service sector business activity.

Crude managed to hold on yesterday even as DOW dropped by a massive 200 points. U.S. Energy Information Administration reported that US crude oil supplies fell 6.3 million barrels for the week ended May 31, to 391.3 million barrels. Crude seems to be getting benefited from a combination of the drop in US crude supplies and weak US dollar. MCX Crude oil futures neared Rs 5400 per barrel levels in the session today and currently trade at Rs 5371, up Rs 12 per barrel on the day with a massive increase of 13.60% in open interest. The open interest has swung higher by around 50% in the current week, indicating a massive amount of fresh buying.
Source by Commodity Insights

Oil Steady At $94 Ahead Of ECB

Oil........

Crude oil futures are trading steady above $94 a barrel helped by the weak US dollar and also got a lift from larger-than-expected drop in U.S. crude supplies.
The U.S. Energy Information Administration on Wednesday reported that U.S. crude-oil supplies fell 6.3 million barrels for the week ended May 31, to 391.3 million barrels. Late Tuesday after the Nymex trading session ended, the American Petroleum Institute a reported 7.8 million-barrel drop in crude supplies.
Oil traders have been concerned about high U.S. inventory. Last week’s EIA report showed total U.S. crude supplies at 397.6 million barrels, which brought the inventory to the highest level since at least 1978, the year when the agency said it began collecting the data.
Crude for July delivery rose 18 cents at $93.92 a barrel in electronic trade during Asian hours on the New York Mercantile Exchange. Yesterday, it tacked on 43 cents, or 0.5%, to settle at $93.74 a barrel after trading as high as $94.48. Prices had lost 0.2% on Tuesday.
The ADP jobs report arrived ahead the Friday release of the government’s own employment report, and a weak reading there could further dim energy-market sentiment. But before Friday’s figures, the European Central Bank on Thursday is expected to reduce its economic forecasts, and ECB President Mario Draghi is due to speak about conditions in the troubled euro-zone economy.
Ahead of the ECB updates, the U.S. dollar turned slightly lower against major rivals. A weaker greenback tends to aid oil and other commodities denominated in dollars, as it makes them less expensive for holders of other currencies.
MCX June crude oil futures are trading nearly Rs 15 at Rs 5346 per barrel. The counter should find good support near Rs 5325 levels with resistance near Rs 5390 levels.
Source by Commodity Insights

Oil Stays Afloat Above $93

Oil.........

Crude oil futures stayed afloat above $93 a barrel in Asia electronic session getting a lift from larger-than-expected weekly drop in supplies of the commodity.
Crude for July delivery gained 33 cents, to $93.63 a barrel in electronic trade after the American Petroleum Institute reported a drop in crude supplies that was nearly 8 times of what analysts had expected.
Before the API data were released late Tuesday, the July crude contract shed 14 cents, or 0.2%, on the New York Mercantile Exchange.
The trade group said crude supplies fell 7.8 million barrels for the week ended May 31. Analysts polled by Platts were, on average, looking for a decline of 1 million barrels.
The market will look for inventory data from the U.S. Energy Information Administration at 10:30 a.m. Eastern.
Investors have been concerned about high inventory. Last week’s EIA report showed total crude supplies at 397.6 million barrels, bringing inventory to the highest level since at least 1978, the year when the agency said it began collecting the data.
The API late Tuesday also said weekly gasoline inventories declined by 1.3 million barrels while distillate stockpiles rose by 241,000 barrels. Analysts were looking for a climb of 1 million barrels in gasoline inventories and a rise of 1.4 million barrels in distillate supplies.
MCX June crude oil futures may open today’s session near Rs 5300 levels with resistance near Rs 5330 and Rs 5370 levels.
Source by Commodity Insights

Crude Slips From Highs Near Rs 5300

Crude.........

MCX Crude oil futures slipped from the highs today, not failing to hold on around Rs 5300 as a bearish undertone remained in place amid mixed global cues. The commodity had edged up in last session on supportive manufacturing data from Eurozone but gains in the US dollar made the WTI crude pare these gains. Worries over Chinese economy also kept the upside under check. The WTI Crude futures are quoting at $93.33, down 12 cents per barrel on the day. The prices had dropped to their one month low of $91.26 per barrel in last session.

Oil had slipped in electronic session yesterday after the HSBC Chinese manufacturing PMI indicated a continued contraction and led oil lower. The final version of the HSBC China manufacturing Purchasing Managers' Index for May fell to 49.2, down from a preliminary reading of 49.6, and more than a point off from April's 50.4. However, the commodity took a turn around after the euro zone's manufacturing PMI rose unexpectedly last month. In a report, research group Markit said the euro zone's manufacturing PMI rose to 48.3, from 47.8 in the preceding month.

OPEC oil ministers reached quick agreement last Friday on keeping output targets steady but deferred solutions on how to deal with surging U.S. shale oil production and internal rivalries denting the organization's image of unity. The oil cartel's decision on keeping the status quo on production of 30 million barrels a day was expected. The price per barrel for internationally traded benchmark oil is over $100 US, a level most OPEC countries are happy with.

Meanwhile, the US dollar gained against the Euro ahead of the ECB meet during the middle of the week. Dollar is quoting at 1.3068 after falling to its three week low above 1.3100 yesterday. Oil remains vulnerable to another push towards $92 if the US stocks witness-selling pressure amid lack of data. MCX Crude oil futures are quoting at Rs 5276, down Rs 11 per barrel on the day. The open interest in the counter is up 4% on the day.
Source by Commodity Insights